Sharing My Favorite Rent Collection Method

[Dustin Ruhl]

My Favorite Rent Collection Method (Shocker—It’s Not Electronic)

In today’s world, many daily tasks and money transfers are done electronically. It has been a benefit to productivity across many spaces. However, when managing a rental property, the best way to collect tenants’ rent is not electronically, but in person.

There are several reasons why collecting in person is beneficial. Firstly, you are able to retrieve it from the tenants mailbox, and take photo evidence of it being there. You are also able to speak with the tenant. This is crucial, as maintaining a good landlord-tenant relationship is paramount when leasing property. Even if they are not a talkative tenant, you can use the time at the location to ensure the general upkeep of the property is satisfactory, especially if they are just starting in their first rental.

Another great boon to on site collection is ease of payment and contact with the maintenance head. With differing and busy schedules, it can be demanding to find time for meetings and payments with the maintenance crew. By collecting on site on the same day each month, you can kill two birds with one stone.

There are a few caveats to remember when trying to implement this technique. The set date to collect should be before your mortgage is due. It should also be in compliance with your local collection laws. Lastly, it does not scale up well in size at all. This method will not work for you if your tenants or properties number too high. In this case, a property management company may be the solution for you.

Make sure you’re getting the rent from your rental properties without a hitch. #Ironclad

Follow Ironclad

Tweet Now

Key Points:

1. Picking up the rent checks directly from the houses allows you to see the condition of the property and address any concerns.

2. Checking in regularly with your maintenance team can keep you both on the same page and keep repairs timely.

3. This only works for people managing a few properties with a few people and wont be as useful for people with bigger operations.

Because I see my property—and sometimes the tenants—on a regular basis, my renters know that I am involved and aware. It can head off problems before they start.

Make sure you’re getting the rent from your rental properties without a hitch.

Managing your rental property, or especially properties, can be an endless cycle of documents and review and fiscal fortitude. If you lose tabs on what’s happening at your buildings and land, disaster can sneak in and disable every aspect of your business. Don’t be afraid to use technology, but even the 21st Century doesn’t have great, easy to use, and effective replacements for physically visiting and looking things over yourself.

See the original at: https://www.biggerpockets.com/blog/rent-collection-method