When tenants sign a lease, they agree to pay a fixed sum of rent on the same day each month. It is the landlord’s job to collect the rent, which can be done in a few different ways. The landlord is obligated to inform tenants of the rent payment procedure, so there will be no misunderstandings later on.
Options for Landlords
Property owners have the right to manage their properties in whatever manner they choose. This includes the method for collecting the rent. Some landlords may prefer one payment choice while other landlords offer more flexible options. The number of properties or units that are being managed often determines how rent will be collected.
Rent Collection Options
Landlords may choose from the following collection options:
• Online payments. There are many rent collection services on the Internet, such as RentMerchant, RentMatic and ERentPayment, which allow tenants to conveniently pay rent online. Plans vary from basic collection to more complex tasks like providing vital documents to renters. PayPal is another popular method although it does have the downside of delayed payments and possible fees.
• Mail. For landlords who do not want to collect rent in person, having tenants mail in their payments is another effective method. To ensure on-time payments, the tenant should use certified mail, which will show the date sent and when it was delivered. The drawback to mailed payments is even if they arrive by certified mail, there is no guarantee the full amount is enclosed.
• Drop location. A landlord who has a property management office can allow tenants to drop off payments there. A property owner should never give out a home address to renters.
• In person. If there are only one or two properties, the easiest way to collect rent is in person. The bad part about this method is it can be time consuming, and there may be difficulties in scheduling payment pickups from tenants.
When it comes to collecting rent, landlords will have to choose a method that best suits their needs and those of the people who rent from them.