Collecting Rent on your Poway Rental Home

One of the most important parts of getting your property rent-ready is deciding on a rent collection method. But what works for one landlord, may not work for another which is why you will need to choose the best rent collection method that works for you. But before we look at the different rent collection methods, there are a couple of factors that are worthwhile considering.

• Your investment portfolio: If you have a sizeable portfolio, you will need a more streamlined and efficient method of rent collection compared to a landlord who has only a few doors. 
• How far away you live from your rental property: If you live a few blocks from your rental property, collecting rent personally may be viable. But if you live far from your rentals, an electric funds transfer method may be the best option for you.
• How comfortable you are with technology: If using technology makes you uncomfortable, then offline methods may be best for you.

We at Halcyon Real Estate Services have put together the following article to examine the six rent collection methods. Our goal here is for you to gain the information you need to decide what method is best for you and show you the net gains a rent collection system can make. Allowing you to spend the profit on things like renovation.

Online Rent Collection

An increasingly popular method of rent collection, there are many sites online that facilitate rent collection for landlords. Some of the most popular solutions include RentMatic, ERentPayment, and RentMerchant. Using an online solution means your tenants will no longer have to write checks, and no longer will you have to wait for those checks to arrive in the mail and clear at your bank. All your tenant needs to complete a rent payment is internet access.

Each online rent collection service offers a different plan depending on the portfolio of the client. They vary from basic plans to something more advanced, sending messages to tenants and even uploading important documents. Other online options include Venmo and PayPal. While these are not dedicated rent collection apps, they still allow a user to make their rent payment using their debit card, credit card, or bank balance.

Mailing the Rent

Mail is still a popular method of rent collection. Unlike collecting rent in person, it saves you time from having to collect it yourself. But this method is not without its challenges. For one, a difficult tenant may be able to take advantage by paying the rent late or making the excuse that the payment was “lost in the mail.”

Delivering the Rent in Person

You could also choose to collect rent from your tenants personally. The benefit of this method is that you will get the payment immediately. On the flip side, collecting rent in person can be frustrating and time-consuming. Especially, when it comes to coordinating the pickup times with your tenants.

Using a Check

Several forms of checks exist, and some offer more security than others:

• Certified Checks: These are issued by banks and verify that the tenant has the actual funds in their bank account.
• Cashier’s Checks: With this type of check, you will not have to worry about a check ‘bouncing.’ Cashier’s checks come with the bank’s assurance that the funds are available.
• Personal Checks: This comes directly from your tenant’s bank account. Though, unless you have built a certain level of trust with your tenant, avoid using this method at all costs. It is impossible to verify whether the check is real or that the funds are available.

Provide a Money Order

Money orders are another way landlords can accept rent payments. They are considered a secure method of payment, as they are based on prepaid funds issued by not only banks but also post offices, grocery stores, and drug stores. But while money orders can be great for one-time payments, they may not be as convenient for tenants in the long haul.

Partner with a Property Management Company

An experienced property management company can help make your rent collection a breeze, as they already have tried and tested systems in place. Additionally, property management companies can do more than just collect rent on your behalf, they can:

• Fill your vacancies with reliable and dependable to ensure you maximize your ROI.
• Screen tenants on your behalf using a thorough tenant selection criteria, involving checking, and verifying a tenant’s rental background, criminal status, and employment history.
• Ensure your property is always in tiptop condition by conducting regular maintenance.
• Provide you with detailed financial reporting easily and conveniently.

Bottom Line

Choosing the right rent collection method for your Poway tenants is key to running a successful investment property. It will not only minimize missed or late rent payments, but it will also make rent payments easy and convenient for your tenants.

If you still find rent collection a daunting process, Halcyon Real Estate Services can help! Contact us today, as we can help with a variety of different aspects of property management, such as drafting a lease agreement, or marketing the property!