Odd Peak

5 Best Ways to Collect Rent From Your Tenants

Tenants’ rent is the only source of income for some landlords, so getting timely rent payments every month is an urgent and necessary matter for a landlord. It’s excruciating for landlords to wait each month to see when their tenants decide to pay. Most landlords think the only course of action is to evict those tenants who failed to pay their rental fees at a given time. An eviction process is the last way to collect the due rent from a tenant, and it should be applied as a last resort. Eviction takes a significant amount of effort, and if it isn’t done right the first time, it can cost quite a bit of money.

Sometimes collecting the past due rent from a tenant can be a landlord’s worst nightmare or favorite task, and it depends on your tenant’s situation. It will be easy to keep track of each month in which tenants are current with their rent and who is behind if a system for rent collection is established. Here are the following five best ways to collect the rent from your tenants:

  1. Cash Payment

A landlord can be tempted to collect cash rent from the tenant. When you obtain the cash from the rental, there is no chance of a bounced check, and you do not have to wait for the payment to clear. Also, receiving cash has risks too as you mishandle it, or instantly lose it. But cash can be tricky because it leaves no paper trail like other forms of payments.

  1. Online Payment

Nowadays, rental fees are paid online, and online property management services are open for landlords. You can search online for some rental collection services and select the one that suits you. Some websites may offer the ability to upload essential documents for your tenants, the ability to send messages to tenants. Some sites  have many bells and whistles. But some of the property management sites have simple rent collection methods because they only give the one service. The rental prices vary on the plan you choose. There is no need to give your banking information to the tenants during the payment because online sites are the right way to collect rent.

  1. By Mail

If you are looking to save time so you can do some other essential tasks, rather than reaching out to your tenant for the rent, consider allowing the tenant to send the money by mail. However, there are some issues associated with this method as you will receive the money a few days after the mentioned date on the envelope. That is why it can’t be considered a late payment, and even if you choose to send California Eviction Notices for that, it will be invalid. Moreover, you may also face the “the check got lost in the mail” excuse if your tenant has not collected a certificate of mailing from the post office.

  1. Payment by Credit Card

Payment by credit card can be another suitable option for rent collection. They are fast and secured. In this way, your tenant will be able to send the rent more comfortably, and tenancy would be more comfortable. For you, it will be only a matter of a few business days for getting the money.

However, credit card payment isn’t free of drawbacks either. The tenant may pay you, and then again claim that the payment wasn’t verified. While you may trust the tenant, it’s still a question whether you will receive the payment for the last month of the lease term.

  1. Payment in Person

Of all the transaction methods for collecting rent, this one is the fastest and the most reliable way to receive your rent. If you can manage some time from your schedule, we advise that you visit your tenant in person in order to receive the rent. This will not only be safe, but it will also build a good relationship with your tenant.

The only thing that landlords hate about receiving rent in person is the time and effort they have to make when receiving the rent in person. But still, collecting rent in person remains one of the most popular ways in tenancy.