This goes out to the property managers out there. Most property managers I've dealt with have as part of the rent agreement included a mailing address for rent collection. My current PM (in Rochester) though actually goes out and collects the rent (he doesn't charge) because he believes they won't typically pay otherwise. I'm curious, for those who have tenants in Section 8 or State Aid Programs, do you find it similar experiences. My previous leases, with other PMs always included mailing addresses for rent collection. I can't say I'm upset he's willing to put forth the extra effort =) but I'm always curious how he'll ever expand (should he choose to).
if tenants can't mail payment or bring it to a commercial location during business hours they are no longer my tenants. I only look for people who don't want me banging on their door for money. In some circumstances I'll let them deposit into a deposit only account at a local bank. If they can't handle payment they can handle my property.
They should at least have a PO Box listed. However, I agree with his methods. Remove barriers when it comes to collecting rent. I personally use an onsite drop box and that works extremely well.
Section 8 does direct deposit, so no point in bringing that up except for getting the portion of the rent that the Housing Authority considers the tenant's responsibility to pay. I hear that it can be difficult to get them to pay that ...
I've had quite the opposite experience, with Section 8 tenants being the better paying ones always on time and always prompt. I think locally here they know they can lose their assistance if they are not making their portion of the payments on time and get reported.
I think part of it depends on the area and the type of people. We have one tenant who ALWAYS pays, but we pick up the check. It's a 1.5% rule building and the tenant has been there for a long time - so for us it's worth just swining by and picking it up once a month.
I pick up the rent myself for the majority of my properties. Some are on my way to or from work and I can swing by go to the rent box or some leave it on the counter just inside the door. Other properties are pretty close to my home as well. I like being able to see my properties at least once a month and I like that the tenants know that I will be there at least once a month. I can also speak with neighbors and take care of any issues quickly. I only have 10 units currently but an hour of my time to make all the pickups is well worth it for my business model at this point at least.
I require tenants to mail or deliver their rent to our corporate office. We manage 100 properties and it would not be possible to pick up the rent every month. We do however pick up rent to avoid a eviction filing but charge the tenant to do so. I would definitely avoid routinely picking up the rent at all costs.
Property's nearby I collect and my thinking is similar to Kyle H.
Several I have learned that its best to pick up rent on the third before they spend it :)
Thanks, I was curious. I know that the state aid (DSS) does direct deposit too but it is the difference that the PM is collecting. Now he only has a small business, but as both he and myself scale our respective businesses, it seems that it would benefit him to get tenants for my property (and his other clients) to be a little more self-sufficient in making payments, but I suppose I don't mind being the 'biggest' client should he chose not to scale...as long as the rents are paid. Thanks for the input!
None of my section 8 tenants have a voucher that covers 100% of the rent. The portion the tenants is responsible for is mailed to a po box. Section 8 tenants pay on time or early and I rairly have any issues with them. I actually had a couple that paid a few months in advance in April probably because they had a tax return. Here are a couple of examples of the voucher distribution...
Rent $950 per month: Section 8 pays $570, Tenant pays $380
Rent $575 per month: Section 8 pays $406, Tenant pays $169
Rent $825 per month: Section 8 pays $283. Tenant pays $542
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