More than 100 million Americans rent their homes.
Homeowners outnumber renters by 2 to 1. Still, there's a huge market for rented homes and properties. If you're a landlord, you need to choose one payment method or more to get that sweet cash.
Here are the top 4 ways of rent collecting:
1. Rent Collecting in Person
The old school method of rent collection is collecting rent in person. This means you go to the home or property and obtain the rent yourself.
Making an in-person visit each month is ideal for rent collectors who live on or nearby the rental property/home. It's also great if you need to do inspections for the sake of rental property maintenance.
In-person rent collection isn't efficient if you have a lot of tenants. You still have to coordinate pickup times with every person who rents from you. For many landlords, that means using gas, money, or time.
The downside is if word gets out about your situation, you're likely to be targeted by thieves.
2. Collecting Rent Online
Collecting rent online is simple: You choose a payment processor and go from there.
There are websites designed specifically to assist landlords with receiving rent payments online. These sites usually come with different payment plans with different levels of features. ERentPayment, RentMatic, and RentMerchant are more popular websites for landlords to collect rent.
You can also go about collecting rent online through PayPal or Venmo. Both services are free to use. However, PayPal can take a few days to process.
3. Direct Deposit or Automatic Transfer
Make the rent collection process quicker with direct deposits or automatic transfers.
The tenant simply sets up the automatic transfer to go to your bank account once a month. This makes it so your account will receive funds from the renter's account on a monthly basis.
If the tenant fails to pay rent, the landlord notices the absence of money in their account. Then the tenant is liable for unpaid rent.
Some banks charge a fee for this service.
4. Hire a Property Management Company
You can hire a property management company to take care of rent collection for you. This company will make sure you get paid. They'll even take care of tenants who don't pay their rent.
This is the best way to collect rent because it offers the most results for the least amount of effort.
With a property manager, you no longer have to worry about choosing a rent collection method at all. These same professionals can also manage maintenance requests for you as well as tenant screening, eviction, financial reporting, and property marketing. There's virtually no risk of theft, either.
Yes, you have to pay for these services. However, hiring property managers saves you a lot of stress, resources, and time.
Get Paid As Soon As Possible
In the United States, there are at least 48.5 million rental units. Use these 4 rent collecting methods to get paid.
Out of all the rental units in the United States, 43.9 million are occupied. Rental homes/properties are hot commodities. The sooner you have your rent collection options down, the sooner you get money.
Do yourself a solid favor and check out the pricing for property management services. It'll make your life so much easier.