what would be the best, easy, convenient and secure way to collect rent for both landlord and tenant. I'm about to start renting my fist home and would like to get some advice on this matter. Thanks
@Juan Tonche Ever since I've been using a property management software to manage my rentals, it's been become way easier. My tenants have auto-pay set up, so there's little for them to worry about and I see fewer late payments on my end. I suggest testing out some softwares to see which one would be the best fit for your rental business.
There are a variety of methods. You can provide them deposit slips and they drop it off at your bank. They can sign up with Venmo or a variety of other services that allow online payments. Or you can use a software designed specifically for Landlords to collect rent. Search BiggerPockets for "collect rent online" and you should find about 16 conversations a week on this very topic.
thanks for the advise.
Run it like a business. You can have your tenants mail you a check, but you might appreciate using an online service like Cozy. Venmo is fine too, you should just run a spreadsheet to keep track. Rent is usually late after the 5th, and your lease should spell out everything.
Each multifamily building has its own bank account. It's written into the lease that tenants must deposit their rents into that particular account (either by online bank transfer or by walking in a check/cash); I do not collect rents directly, nor would I if anyone asked. Systems don't work if there are any exceptions. Each tenant living in a building has their own unique rent amount, so even if they do not leave a notation with the rent payment, I know whom paid the rent based on the amount alone. I get an email alert each time a deposit is made.
Updated 14 days ago
Although many folks here on BP do, I prefer not to use any third-party vendors (Zelle, etc.) because firstly, that creates another link in the chain that can break down between the tenant's deposit and my bank account. There is an occasional thread on BP where the vendor has a system crash of technical glitch and transfers are delayed. In a perfect situation, the payment will still be delayed (even if by hours) using this additional system. And secondly, many of these vendors have "clawback" provisions where, in their terms of service, you give them permission to go back into your account - even weeks after the fact - and reverse a deposit that was made by your tenant. My system is simple, allows for tenants to pay through multiple means, and does not cost me anything extra.