How do you collect rent?

[James Maher]

Currently, I'm using a property manager for one property.  They just direct deposit each month into my checking account.  I am buying another property and will most likely not be using a property manager for it.  What ways you collect rent electronically?  I haven't talked to the current tenant yet to see how they pay right now, maybe that's how I should start?

[Watson Smith]

I probably use the worse possible method to collect rents.  I have 11 tenants and 2 of them deposit it in my account, 1 sends a check monthly on the first and the other 8 I go and collect it in person.

Unlike many landlords I enjoy going in person.  Every month I shake their hand and go in the house like family.  A little small chat to see how the families doing and they normally ask how my wife is.  If their cooking I might grab a bite to eat as well.  I might even sit on the porch and drink a beer.  Time consuming - Yes - But I have very low turn over.  I've NEVER had to advertise vacancies and I have a waiting list of people calling often.  They need to see you as a person and not a mythical creature they send a check too. Most low income families never had a landlord like this... Their use to slum lords who churn and burn. I wouldn't use this method if I was renting to a more high income client.

Since I'm still small I can do this... Though later in life as my holdings grow this won't be feasible.  Its a great way to see your properties, check up on the neighborhood and make an impact on someone's life.  While this is a business you still have to enforce your rules... But good service pays dividends in the long run.