Taking the Headache out of Rent Collection
Whether you are a real estate manager by choice or accident, you have to collect rent from your tenants every month. Most renters are honest and well-intentioned and will pay rent on time without constant nagging from you. However, you need to anticipate that some tenants will be challenging and make arrangements for rent collection that includes such.
Establish Professionalism: Build Tenant Respect
To encourage tenants to take their obligation seriously, start by demonstrating professionalism by using a rental contract. There are many templates online that you can download and use. For the purposes of this discussion, we will concentrate on the part of the agreement that stipulates rent payment. Ensure that the wording states when you must receive the payment as opposed as to when it is due. This wording puts the responsibility of timely payment on the payer rather than on the landlord. Point out this clause to your tenant when the agreement is signed for clarity.
Discuss Payment Options: Dissuade Tenants from Cash Payments
Though we are not yet in an environment where we can count on everyone being able to pay rent online, the best bet for rent management is to assume the reverse. When you discuss rent payment, presume that your tenants will pay using some online system perhaps offered by a bank or credit union. If they insist that they can not pay through a bank, suggest using an online app such as Venmo. If they still find this unacceptable, enable them to use PayNearMe which does not require a bank account - more on this later. The point here is to establish that you expect timely payment and would prefer to know the payment method the tenant wishes to use so you can do anything you need to on your side to support this.
No Rent Pick-ups, No Home Address
We don't really know who our tenants are so going door-to-door to collect cash or checks is a potentially dangerous idea. Don't expose yourself to this danger. If you have tenants who insist they must pay by check, set up a Post Office Box for this purpose. Do not give your tenants your home address; it can only cause difficulty and only saves you a few bucks in PO rental; it's not worth exposing yourself that way.
Anticipating Problems: Rent Collection is Not Easy
No matter how clear you make your intentions to your renters and how easily you structure payment systems, you will have some difficulties. By accepting this as a premise, you learn that even the most perfect system is subject to the human element and also learn that you can never hope to achieve a system that works 100% of the time. This acceptance also saves you headaches and anxiety, so it is best to start out understanding that perfection is not possible rather than invest useless hours each month worrying about the next rent cycle.
Using PayNearMe for Renters Without Bank Accounts or Electronic Options
PayNearMe enables renters who don't have or won't use bank accounts to pay their rent using cash. It is efficient, requires minimal organization and enables even your cash tenants to pay rent on time. It still won't be perfect, but it will be better, and that's saying a great deal.