As a landlord, your monthly rent collection process makes a huge difference to your bottom line.
If you want to get paid on time each month, it's in your best interest to make rent collection as easy as possible for your tenants. In 2023, collecting rent is mostly done digitally, which allows your tenants to automate their monthly payments.
Digital rent collection is much easier for the landlord, since you won't have to chase tenants down for their payments. In this post, we'll give you a quick guide to automating your rent collection process, so keep reading and make your life as a landlord easier.
Clear Communication About Paying Rent
It's important to be clear about what you expect from your tenants when it comes to collecting rent. Lay out all of the options, including automatic rent withdrawal, so they know how to get the rent paid each month.
Truthfully, it's in everyone's best interest to give your tenants a few different rent payment options. Most tenants will prefer digital rent collection, but some will still want to use post-dated cheques, money transfers, or even cash.
Understand the Laws
Here's where it's important to understand tenant-landlord laws. Most states don't allow you to require automated rent payments, so you'll legally have to accept one offline rent collection method.
Fair housing laws are in place to prevent landlords from discriminating against tenants. When it comes to digital rent payments, it could be seen as discrimination against older tenants who aren't as digitally inclined.
Choose a Rent Collection Software
The first step in automating rent collection is choosing the right software or partner. Countless cloud-based rent collection options allow you to set up automatic payments, set reminders, and get financial reports.
Another option is to hire a qualified property manager. Property managers can take the burden of rent collection off of your plate entirely. You'll get secure automated payments each month and won't have to chase tenants down, deal with maintenance, or respond to issues.
Make Sure You Can Reject
In the event you need to evict a tenant for nonpayment of rent, it's important to be able to reject automatic payments. If you continue to accept them as you're evicting someone, it can prolong the eviction process.
This is also important when a tenant moves out. You'll need to remember to reject autopay so that you don't continue to collect rent after a lease ends. If you don't and it goes unnoticed, your reputation as a landlord could be tarnished.
How Property Management Can Help
Making rent collection simple is in everyone's best interest. Your tenants don't want to have to think about paying rent every month and you don't want to have to chase them down. Automating rent collection solves this problem, but figuring out the best way to implement it isn't always easy.
That is unless you hire a great property manager. At PMI US Southwest, we can help you streamline your rent collection while helping you with every other aspect of being a landlord. Contact us today to learn more about our services and how we can help you maximize your investment.