Collecting Rent

7 Replies

I go to the unit and collect rent in person is that a good idea?

@Martin Gregory ,

The short answer is: it depends.

The long answer is: it depends on a lot of things...

Do you feel safe talking with and collecting the rent from your tenants?  I think this would probably be the first consideration.

Another consideration that may be further down the road for you is, is it worth your time?

I don't collect rent anymore.  I have people who do everything for me, from leasing to minor repairs.  Property Management is something I feel like you should always plan for in a purchase, whether buying an investment property or future investment property (note I did not say home, because odds are you'll probably move and want to rent it out).

I think you're better off buying right and putting a competent property manager in place of your properties.  I've noticed the professionals I've hired are more motivated to get it rented and raise rents over time.  Also, They get paid to do all that work for you.  In other words, you do nothing but check to ensure the rent was deposited in your bank account and move on to your next life experience.

I know this is a bit pointed towards the 'down the road' stage of investing, but I really feel like if you plan for it from day 1, you'll save yourself a lot of headache and give yourself more time to find good deals.

Good luck!  Keep us posted.

-Sam

It's best to train your resident to get their rent to you in an effortless way. I use Cozy.co it's free.

There are many other rent collection services that make automatic transfers from their account to yours.

Also, on a separate note, I wouldn't want you to always be associated with a financial transaction. You want to be associate with adding value to your resident's life more than taking money out of their wallet.

Best to you

It's not what I would prefer, but sometimes it is the alternative that gets you paid. I once had tenants who were not born in the USA, and they did not like to keep lots of money in their checking account - they preferred to pay in cash. If it's going to be a cash payment, it must be face to face and you give a written receipt (and keep a written record as well). Face to face can happen at your place or theirs; if you go to theirs it gives you a chance to do an impromptu inspection without suspicion being raised.

Seems like an inefficient use of your time. Better to have them mail the check if you don't have an online pay system.

Thank you everyone for your honesty.  Now the challenge for me is to implement these ideas

Originally posted by @Steve Babiak :

It's not what I would prefer, but sometimes it is the alternative that gets you paid. I once had tenants who were not born in the USA, and they did not like to keep lots of money in their checking account - they preferred to pay in cash. If it's going to be a cash payment, it must be face to face and you give a written receipt (and keep a written record as well). Face to face can happen at your place or theirs; if you go to theirs it gives you a chance to do an impromptu inspection without suspicion being raised.

 Like the idea of using this as an impromptu inspection.  For pure collecting rent purposes, I like to request them to go to my designated bank directly to deposit.  That way the tenant will have an official receipt from the bank and don't have to worry about scheduling etc.  Protect both sides and saves you a trip as well.

Originally posted by @Fred Heller :

Seems like an inefficient use of your time. Better to have them mail the check if you don't have an online pay system.

 Good in theory, just be prepared to deal with "I mailed in but it just haven't arrive yet" type of argument / extra few days of anguish.  Please refer to my previous comment (ask tenant to direct deposit to designated bank)