Rent Collection at Your Fingertips
Landlords in Kissimmee, FL make over $80,000 a year. That’s almost $40 an hour! For a new property owner to make the most out of their rental and earn this kind of money, they need tenants who pay their rent on time.
That means giving residents a convenient way to pay. There are several rent collection methods that you can try.
Most landlords are switching to payment apps and online portals. However, there is some merit to collecting rent via physical check. Continue reading to learn more.
1. Checks
Checks are one of the oldest rent collection options. Not many landlords use them anymore because they can bounce back if the tenant doesn’t have the funds.
If you accept checks by mail, it could take days to arrive. When you take the money to the bank, it won’t clear the same day.
Checks also contain confidential information. If you lose it, your tenant’s banking numbers could fall into the wrong hands.
The good news is that paper checks are a relatively inexpensive way to collect rent. They’re also less vulnerable to the scammers online.
2. Online Payment Portal
Online payment portals are convenient for tenants. They won’t have to write out a check and mail it or put it in your drop box if you have one. Instead, they can pay their rent with the press of a button.
If a resident has issues remembering to pay, they can set up auto-deposit. You can even allow residents to use the payment portal to submit maintenance requests!
Online payment portals don’t only make the rent collection process easier for tenants. They make it simpler for you, too. The money will go into your bank account almost immediately.
You can use the payment portal to send your tenants messages to remind them when their rent is due. The online portal will keep electronic records of all payments, which is way easier to keep track of than physical receipts.
3. Payment Apps
The last option is payment apps like PayPal and Venmo. These are simple to set up and cost nothing for you to use. However, you may have to pay a small fee to transfer the funds from your Venmo to your business bank account if you want access to it right away.
It’s important to note that these apps aren’t designed to handle rental payments. As you scale up your real estate business, you may need to switch to an online portal or checks.
Rent Collection Methods Every Landlord Should Be Aware Of
One of the first things you’ll need to decide on as a new landlord in Kissimmee, FL is your method of rent collection. There is some merit to accepting Venmo and physical checks, but most renters choose online portals every time.
Allegiant Management Group offers a wide range of services, including rent collection. Contact us today to learn more!
FAQs
What is the most secure rent collection method?
Online payment portals are the most secure, offering encryption and immediate deposits to your bank account.
Can I accept rent payments through Venmo?
Yes, but Venmo isn’t designed for rental transactions and may lack the necessary features for scaling your business.
Are paper checks still a viable option?
Yes, but they come with risks like bouncing checks and delayed processing times.
What should I do if a tenant doesn’t pay on time?
Send reminders through your payment portal and refer to your lease agreement for late payment policies.
How can I automate rent collection?
Use online payment portals that allow tenants to set up auto-deposit.
