While I like the idea of being able to keep tabs on the condition of the property, in my opinion, collecting rents in person adds a layer of risk to the process (you may be carrying a large sum of cash around) but perhaps even worse is that you are training your tenants to rely on you, when you should be training them that this entire process is their responsibilty.
If I were your tenant, I wouldn't be too pleased with this arrangement. Things happen, and I have an extremely busy schedule. I would not want to be tied down to having to meet you in person to pay the rent. Why not allow a check to be mailed, or some other option. It is a lot easier to drop a check in the mail than to have to set time aside out of my day to make sure I can meet with you.
Personally, I also travel a lot for work. What happens when your tenant is out of town? Do they have to pay you before they leave, or would you accept "late" rent when they return?
I never collect the rent in person. Like James said, our lives are very busy and there is no way to have a set appointment, monthly, that both parties can keep. Just ask a Doctor how many appointments are "NO SHOWS" for their office.
My best response is to have it mailed to my PO BOX (no home addresses) or have it Direct Deposited into my account. If the tenant agrees, you can even have a set deposit on the first, or the fourth, of each month, transferred from their account to yours. No one has to do anything.
I pick up about half of the rent in person. The tenants email me or call me with a good time and I show up at their house. Rarely, do I get a "no show" because it's at their house and we made an appointment the day before or in the morning.
I do like going to pick it up because I can see the condition of the property and usually get invited inside.
While I like the idea of being able to keep tabs on the condition of the property, in my opinion, collecting rents in person adds a layer of risk to the process (you may be carrying a large sum of cash around) but perhaps even worse is that you are training your tenants to rely on you, when you should be training them that this entire process is their responsibilty.
I asked because I know someone who was a landlord for a very long time and he said to always going there in person.
He said that that if you allow them to mail it will just lead to problems.
But maybe that's old school?
I always collect my rent in person. This has saved me huge problems...for example, a new direct vent water heater had come loose and was venting into the basement. That could have been a huge problem, but I was able to catch it right away. My tenants call me and tell me that the rent is ready. Then I tell them when I'll be there (I group them together), and if THEY ARE NOT GOING TO BE HOME AT THAT TIME, TO LEAVE THE RENT IN THE KITCHEN ON THE COUNTER. That way they are not obligated to be there if they are busy, and yet I still get to go in and check on the condition of the unit. If you have them mail the check, when will you get to see the inside of the unit? What if they say the mail person lost it? It just creates more problems.
here's the wording in my lease. It's very specific and gives me permission to enter every time.
4. RENT PAYMENT PROCEDURE:
Tenants agree to pay their rent by calling the Landlord (847-XXX-XXXX) and delivering in person, or in such other way as the Landlord will advise the Tenant in writing. The Landlord will pick up the rent and perform routine inspection on the house to include (but not limited to) water, heating, gas systems, smoke detectors. If the tenant is not at the premise at the time of pickup and house inspection, the tenant is to leave the rent payment inside the house on the kitchen counter. The landlord will then pick up the rent and perform the inspection.
I always collect my rent in person. This has saved me huge problems...for example, a new direct vent water heater had come loose and was venting into the basement. That could have been a huge problem, but I was able to catch it right away. My tenants call me and tell me that the rent is ready. Then I tell them when I'll be there (I group them together), and if THEY ARE NOT GOING TO BE HOME AT THAT TIME, TO LEAVE THE RENT IN THE KITCHEN ON THE COUNTER. That way they are not obligated to be there if they are busy, and yet I still get to go in and check on the condition of the unit. If you have them mail the check, when will you get to see the inside of the unit? What if they say the mail person lost it? It just creates more problems.
thanks Rich. Has entering the unit when they're not home ever caused an issue? I could see a tenant trying to use that against the LL if another dispute arose.
I always collect my rent in person. This has saved me huge problems...for example, a new direct vent water heater had come loose and was venting into the basement. That could have been a huge problem, but I was able to catch it right away. My tenants call me and tell me that the rent is ready. Then I tell them when I'll be there (I group them together), and if THEY ARE NOT GOING TO BE HOME AT THAT TIME, TO LEAVE THE RENT IN THE KITCHEN ON THE COUNTER. That way they are not obligated to be there if they are busy, and yet I still get to go in and check on the condition of the unit. If you have them mail the check, when will you get to see the inside of the unit? What if they say the mail person lost it? It just creates more problems.
thanks Rich. Has entering the unit when they're not home ever caused an issue? I could see a tenant trying to use that against the LL if another dispute arose.
No, there hasn't been any issues when entering the property. I work on my schedule, not theirs...so if they are not home, I already have permission to enter. I also document (in a log) how much time I spent there and what I did. Just in case. :cool:
The only problem with entering the unit when they are not there when you have received their permission is it's their word against yours in court. This is when you should have them send you an e-mail, text, or leave a Voice Mail giving you permission that way you've covered yourself. If you are in court almost all the time they will deny having given you permission to enter.
I personally would not want to go collect the rents from my tenants. The only landlords I have met who want to do it in person are investing in lower income areas (not my preferred area to invest) or have a couple of buildings in one area so it isn’t too much trouble as they have an office there already. But even then, I don’t want to go knocking on doors, nor would I enter just to get the rent. I am with Peter and Jeff. No reason to enter and I would bet sooner or later you will end up in court about it (I hope not though), especially when a professional tenant finds you. It is there responsibility to get the rent in my PO box by the due date. Period. Why create additional work for yourself, especially if you have more than a few units? That is a lot of driving around (depending on how your business is set up of course). You need to train your tenants to be responsible for themselves. Don’t enable them and get them used to having you doing what is there responsibility. My motto is firm but fair.
If you want to inspect have a clause in the lease allowing it every 45 days or quarter or whatever you like or when they come spray for bugs. If you really have you stuff together, you can get the pest control people to do it for you and if they find a problem, give them something. Most are more than willing to rat out a tenant for some remuneration. Then you do it yourself every so often if it makes you feel better, depending on how often you spray.
Any kind of tenant who cant handle sending rent in the mail is likely in a not so nice area. This opens you up to getting the just collected rent stolen from you. I might be paranoid, but I would think they would just have their friends lying in wait.
If you want to pick up the rent that would be fine I think but it depends on how many property you have and what your goals are.
If you are planning on being a real estate investor or a landlord?
I am an investor with 45 rental units it would take a good day or so to collect all of my rents, it would also take a good day or so to chase down the ones not home.
I try not to go to the tenants homes because then they are counting on you and you need to train them.
This business is supposed to give you freedom to do what you like not tie you down. Just think you will never be able to take a vacation or go to a wedding or do any of that if you tell them you will be there on the 4th of each month.
I take vacations, go to wedding, go fishing, etc. Not sure why no one wants to do the most important part of our job...to get the money! That's also the only fun part!
As you can see there are several different opinions out here. The difference is that I always know exactly what is going on at my rentals and I always have rent or serve a 5 day notice. It's that simple, and it happens only once a month.