There are four traditional methods that landlords typically use to collect rent. Some people want to be paid in person, so they will knock on their tenants’ doors, or ask the tenants to bring cash or a check to the office. Some landlords will accept checks via mail and others will use a payment system like Chase QuickPay or the PayPal system. Today, we’re discussing an even better way to collect rent from your tenants.
These traditional rent collection procedures come with stumbling blocks. Your tenants often work the same hours as you, so asking them to come into your office can be inconvenient if they have to work. When they bring in a lot of money, you have to worry about having all that cash in your office, or you may run into problems making change. Then, you have to go to the bank and make your deposit. You need to log the money you’ve received, noting who it was for and what property it should be applied to. The Chase QuickPay system has been problematic for us because we have to move the money a lot. It’s not property specific, so if you have more than one or two properties, it can be complicated. All of that extra work creates an opportunity for errors. Checks in the mail can often arrive late, and it’s hard to be sure if it’s actually on its way or if you need to start chasing it down. With these problems, owners aren’t getting their rent on time.
The best method for us at ES Property Management is having our tenants pay online. They have access to the system 24 hours a day, seven days a week, and 365 days a year. There’s no downtime. We don’t have to schedule meetings, make change in the office, or worry about the check in the mail. This system gives the tenants control, and they can pay rent from their phone or computer, whenever they want. There’s less opportunity for late fees and we can get payments to our owners quicker.
The Best Way to Collect Rent in Indianapolis, IN – Property Management AdviceOur online system also puts the money right into that property’s ledger. We know who paid, when they paid, and what property it went to. Electronic rent payments make everything simple, and we’re happy to have 100 percent of our tenants paying rent online.
If you have any questions about how to collect rent efficiently, please contact us at ES Property Management.