Rent payment is the foundation of any investment for landlords. It is one of the major sources of income for most investors, therefore, timely rent payment is very important to landlords. Finding the right form of payment follows from this and in this article we will discuss ways landlords can overcome their rent collection woes.
Have a uniform rent collection system
Although there are different ways renters can pay rent, it will be convenient for landlords to establish a single way in which rent will be paid. This will help prevent any inconveniences and misunderstanding. Having renters pay in different ways affects the smooth running of the business. Rent can be paid through cash; check, bank draft email just to name a few.
The benefits of some form of rent payment
As previously mentioned, there are different options available for the payment of rent. Each of them with their pros and cons. Paying by cash will make the landlord have the money immediately, knowing the exact amount. Using checks and bank drafts also serves as a secure form of payment that reduces the risk of theft. In addition, landlords will not have to meet with all renters to collect the rent; they can simply go to the bank and receive all the money. Receiving through online services such as PayPal can be of advantage for landlords that are always travelling. This way they can easily get the rent anywhere they find themselves.
Payment by cash requires the landlord to arrange for physical collection this may not be much of an issue if there are not a lot of different properties to collect from but will obviously involve higher transportation costs if this is not the case.
Payments by cheque
This has the advantage of not requiring you to walk around with wads of cash you then have to deposit in a bank however, you ever you also run the risk of receiving a bounced check and banks usually make you pay a fee for trying to cash a bounced cheque. As also with bank drafts, a landlord is required to pay a certain amount of fee to be able to have access to the money.
All available forms of rent payment have their advantages and disadvantages, so as a landlord, you should communicate well with tenants to see which form of payment will be suitable for all. In addition to this, a receipt should always be given when tenants pay rent to prevent any future conflict.