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 get 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.
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.
You'll have to wait for your bank to process the check. Meanwhile, you have bills that you need to pay to keep your operations running.
Checks also contain confidential information. If you lose it, your tenant's banking numbers will fall into the wrong hands.
Checks don't always bounce because tenants don't have the funds. If the bank can't read the resident's handwriting, or the numbers on the check are faded, they won't clear it.
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 the 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. You will 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 have 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!