I have this question here as I am trying to figure out how to go about this top:
What are the 3 most efficient ways to collect rent?
What are 3 ways NOT to go about collecting rent?
@Paul D. Before accepting a tenant you should screen them properly such as verifying employment, credit, clean background. Once they pass the screening you can set up the lease agreement where they automatically deposit the payments into your account either wire, direct deposit, etc. Only works with qualified tenants. If you do not screen your tenants properly this will never work. Good luck!
@Paul D. Can you be more specific as to what constitutes efficient rent collecting to you? If it is the probability of actually collecting full rent on time year in and year out, I agree with Jack. It is tenant screening.
I only use Cozy. (I previously used erentpayment and never had a problem, but that's another topic.) There are a number of rent collection websites that make the process super easy. As a part of my application, I tell applicants that I require that payments be made online by debiting a bank account. Haven't had any problems. I set it up at the start of a lease and don't really have to think about it again. I've been fortunate (and with thorough screening) that my tenants pay on time or early. I doubt I will ever accept payment any other way. Absolutely no cash nor will I drive around town picking up checks!
There are many ways to efficiently receive rent payments. I use Buildium Property Management Software. This allows tenants to pay me via bank draft or credit card. It also automatically charges my tenants $100 when payments are late and then $10 everyday after that until rent is paid in full (I set it up that way). I also allow my tenants to use Google Pay, Apple Pay, PayPal whatever... Unfortunately the State of Connecticut won’t allow me to “require” tenants to pay online so I do provide a PO Box for them to mail their rent to. Fortunately none of my current tenants mail their rent in. I will physically pick up the rent from them if they don’t want to use these methods, but there’s a $50 fee for that.
As for 3 ways to “not” go about collecting rent... I can’t really say that I have any. Just make sure that if it’s inconvenient for you, you’re being compensated for your inconvenience ($50 rent pick-up fee).
We require payments to be made electronically. Tenants can pay via ACH, e-check or credit cards. Before this, my tenants were taking the payments directly to the bank and depositing it. Now they can do this from their mobile app. Gotta love technology!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you