Best Way to Collect the Rent from Your Tenant?

What is the best way to rent collection?

Being a property owner have you ever given the thought to rent collection? It is very important your tenants pay on time every month, says best real estate agent.

There are two types of renters: Tenants with good background and tenants with bad credit background. Tenants with bad credit background are those who aren’t paying on time. It is important to enlist which option works best for the specific situation, even more, when you have multiple properties and you’re renting your property to bad renters. So according to the top real estate agents in the USA to consider and choosing the best rent collection method is essential for every landlord.

There is a number of factors involved need to Consider When Choosing Rent Collection Method. These factors can discover the best method for you and your rental property.

• Number of Tenants: for more rental units you should choose a more streamlined way for rent collection.
• Distance from Rental Property: Hire a property manager or choose online methods for rent payments if you’re not in the same city or live far from your renters.
• How Comfortable You Are With Technology: however technology can help you in many ways on this front. It’s not only an easy way but also a good way to keep proofs for future.

Effective and popular Methods for Collecting Rent:

There are lots of payment methods that can be used to collect rent from the tenants. However not every rent collection method is right for every landlord as each method has pros and cons. These rent collection ways can vary from business to business. Here we have outlined the five basic rent collection methods:

Cash: it is the most traditional way opted by landlords and even some renters are also comfortable with paying their rent using cash. There are plenty of problems involved with cash payments. For example, you need to visit each renter every month to collect rent. It can be more difficult when you’re not living near to rental property. In addition to the unexpected expenses to your budget, it also has no strong proof like electronic payment methods have. Even if you manually creating receipts, you also need to diligently maintain your records so prevent yourself from any dispute if arises.

In nutshell, never choose cash method if:

1. You reside a long way away from your property.

2. You have multiple rental properties in your portfolio.

3. You don’t want to deal with any manual admin or record keeping work.

4. You want to have a hands-off approach to managing your rental property.

Cheque: this basic and dated method also comes with lots of hurdles. For handling cheque transactions you require a good time to take it to the bank, deposit it and to wait till the payment clear into your account. Finding a time to do this is a tricky thing.

Standing Order: A Standing Order, also known as ‘The Standing Order Mandate’ is a much more efficient way to manage your rental income. It is one of the most beneficial ways as it is trouble-free, automated, secure and reliable.

Let us describe you what is the standing order: it is a set of directions given to a bank or building society which tell tenants to make payments for a fixed amount on a regular basis to a specific bank account. In the payment method, a Standing Order will be set-up by the tenant to send the rent amount to the landlord’s bank account on the due date each month. Once a Standing Order is set-up, it can run indefinitely until it is canceled.

Direct Debit: Direct Debit payments are the other most trustworthy and safe way to collect payment from the tenants. This payment mode is good if you have several properties in your portfolio with different payment dates and amounts.

Before dive take help from top real estate brokers in the USA as they can help you decide which is right for you and your rental property?