Everyone loves options!
Back in the day,the only way to collect rent was for tenants to write a check and mail it to you. These days, there are more options available that a property management company can utilize to make rent payment easy not only for the tenant but for the landlord!
Here are the four rent payment options KGC Properties LLC offers:
EFT (Electronic funds transfer) or direct deposit. More people pay their bills online these days. Being able to pay rent online makes paying rent one less hassle for tenants. Funds are automatically deducted every month from tenant's account and deposited into the management trust account. It's safe, secure, and you won't have to wait for check to arrive and then make bank deposits.
Online rent portals. Everyone is familiar with payment options like Paypal where you can pay online either with a credit card of through a bank account. Property management companies should offer a tenant portal where tenants can not only pay rent online, but also track their payments, generate personal reports, submit repair requests, etc. Rent payment portals are easy to set up and easy to use.
By mail. There are some tenants that still are unsure about putting their information online or want the most control over when they pay rent. There are downsides to this method - especially when it comes to late rent. If you as a landlord accept rent by mail, make sure you have strict policies in place to avoid excuses such as: "The check is in the mail.", "I mailed it to your PO Box..", or "It must have gotten lost or re-routed...". KGC Properties has strict rules about accepting checks in the mail that reduces the amount of checks that get "lost" in the mail.
In Person. Personally, I won't drive to a tenants home, or anywhere else, to pick up rent. Many landlords will - but this goes against my thoughts about tenant responsibility. However, I do not mind if someone wants to bring their rent to me - and use it as a nice opporunity to catch up with tenants! Keep in mind, most tenants who need to drop off rent - usually bring cash. I do not accept cash - that's a dicey way to do business, not to mention, raises red flags if you happen to get audited. It's best to ask these tenants to stop for a money order or bank check before they stop by!
There are pros and cons to any of these types of payments, but what's most important is for your tenants to have more than one option for paying rent!
Comments(2)