Collecting Rent- Three rules you must use

By
Real Estate Agent with BANCROFT REALTY LLC 0637667

 

 Collecting Rent

Collecting rent is the goal of your property business.  It is the fruit of the labor with respect to renovating and leasing the property.  Being a landlord doesn’t mean you have to be callous. It’s important to be cordial, prompt and exact in every encounter with your tenants. However, there is a difference between being nice and polite, and being your tenant’s friend. Being a friend makes it hard and awkward to collect rent or assess late charges. This is why I follow strict rules and guidelines for all my tenants when it comes to collecting rent.

Number 1: Never accept cash or personal checks.

When collecting rent, personal checks can bounce, and cash doesn’t have a paper trail. For your protection and theirs, only accept money orders or cashier’s checks made out for the exact amount. This way they can never claim payments they didn’t actually make, and the checks can’t be canceled or hot.  You want trace ability of rent payments.

Number 2: Sign up for a P.O. Box.

If you’re like me and have properties spread out over a wide area, you don’t want to spend a whole week driving around and collecting rent. It’s a waste of time and gas. I use a P.O. Box nearby my home and use that address on all my leases, correspondence and instructions. I swing by at 6 p.m. on the due date and if the rent isn’t there, then it’s late. In disputes over when rent was mailed or received, make sure you check the stamp over the postage for a date. The post office marks each envelope with a date when it first goes through their system. If they claim to have mailed a check on the 30th, but the stamp says the 2nd, then you have proof  for court.

Number 3: Use direct deposit.

Collecting rent in the digital age should be electronic.  It’s the 21st century, and while we still need roads to get where we’re going, there are advanced methods of receiving rent payments. You can give your tenant your business account number and they can deposit the rent. Banks are secured, your money is safe, and they don’t have access to your account. This way there is no question about when rent was paid.
Did you find this video on collecting rent helpful?  Please give it a share.

For more advice and landlord training, check out Beware!  Renting to relatives can be a financial disaster.  Also veiw Late Rent Payment- three easy steps to resolution
Thank you.

Published at http://blog.jodywallrealtor.com/business/property-management/collecting-rent.html

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Rainmaker
892,100
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

#1 is kind of my go to - we do not accept cash but we do accept personal checks

Sep 16, 2016 12:51 AM #1
Rainmaker
1,523,821
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Hi Jody, I have accepted personal checks from tenants for years and never had a problem.

Sep 16, 2016 01:23 AM #2
Rainmaker
2,706,956
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

I am with Jennifer Mackay and Sybil Campbell we accept personal checks and have never had a problem with one.

Sep 16, 2016 11:46 AM #3
Rainmaker
4,433,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the great tips. I like to use direct deposit method.

Sep 16, 2016 09:17 PM #4
Rainmaker
7,580
David Mixon
Loans 4 Investors - Mid Cities, TX

This is a good article but I personally do not agree with #1 i.e. never accept cash or personal checks. I have tried it and most of the times , it is successful.

Sep 21, 2016 06:38 PM #5
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Jody Wall

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