Austin is one of the top 10 biggest cities in the U.S., with the population growing all the time. Full of culture, architecture, and natural spaces, the city is an amazing place to live and work.
As the number of renters increases, it is a great opportunity for landlords to fill their units. But how do you improve your rent collection methods as you develop your business?
This article provides landlord advice on choosing the best rent collection method. We cover everything from simple cash collection to advanced online portal payments. Read on to find out which one works for you!
Back to Basics
Some of the collection methods we describe in this article need mobile devices or apps. This means that they might not be well suited to tenants who are less tech-savvy.
The traditional form of collecting cash or cheques removes this stress. A lot of older tenants prefer this method. Plus it offers the opportunity to meet with your tenants in person and build a relationship.
But, many landlords are short on time or don't live close to their rental property. In this case, it will prove inconvenient to collect rent this way. You also risk the money getting lost or cheques bouncing.
Bank Deposits or Transfers
Another common form of collecting rent is through bank deposits or transfers. These are a popular choice as they are secure and traceable payments.
A downside is that some tenants may not have their online banking set up. This can prove complicated for them, especially older clients.
You may also get charged fees, depending on the amount and who you bank with.
Payments Through Mobile Devices
Most of your tenants will have access to a mobile device, so taking mobile payments could be a good option. There are lots of mobile apps that allow you to send money in an instant to a recipient. All they need is a mobile number or username.
However, there is a risk of the tenant inputting the mobile number wrong. Plus, you might incur transaction fees.
Online Portal Rent Collection
A method that combines a lot of the positives above is an online portal for tenants. These sites have many functions, including messaging, document sharing, and taking rent payments.
These portals are great for landlords who own a larger amount of units. If you only manage one or two properties, then collecting cash or taking bank transfers isn't an issue.
But when you scale up, having an online portal will help you manage and track your payments with ease.
If you work with a property management company, they often host their own tenant portals. So you don't need to worry about maintaining or monitoring the site all the time.
Find Your Best Rent Collection Method
Compare the rent collection methods above to decide which fits your business best. If you have the capacity, offer multiple payment options. This will make it more flexible for your tenants.
Working with a management company is a great solution to organizing rent payments. Here at PMI Heart of Texas, we have the experience and resources to help with all your landlord duties.
Get in touch with us today to organize your free consultation with one of our friendly advisors.