Blog Post

Process of Collecting Rent from Your Rental

Dustin Edwards • Oct 17, 2023

While tenants are required to pay rent to the landlord every month, how rent is paid and subsequently collected has changed drastically over the years. At the time, the ideal method of collecting rent was either cash or a check. 


Although these methods of
collecting rent are acceptable, they have risks and inconveniences. Today’s article will go over the process of collecting rent, the methods available to collect rent, and the best way to collect rent for you.


Cash and Checks for Rent Collection

We’ve mentioned cash and checks, and while these are viable ways to collect rent, there are some downsides. With money, for example, there are security and accountability issues. Cash lacks a clear paper trail; you’ll have to run the risk of handling the cash before being able to deposit it, and there is the factor of time spent to collect and deposit the money. Checks can solve some security issues, though other issues make them less than ideal. Checks have processing times and can be an administrative burden if you go out of your way to deposit them. Moreover, a personal check risks insufficient funds, leading to additional bank fees and tenant disputes.


Different Methods to Collect Rent

Some of the best ways to collect rent don’t involve much interaction from landlords. Setting up automatic bank withdrawals affords you and your tenant peace of mind, knowing they’ll not risk late fees, and you’ll receive the rent on time. Though not free, mobile apps such as Zillow Rental Manager can help keep track of payments and make it easier for tenants to improve their credit scores. Property Management Companies will always offer a service to collect rent from a tenant. They use as many options as possible to make paying on time easy for your tenants.


Best Way to Collect Rent

Unfortunately, there is no best way to collect rent. After all, every landlord and every tenant has different needs. It's best practice to make it easy and streamlined for tenants to pay; however, some of the methods discussed may take some time to understand and learn, especially for landlords who aren’t tech-savvy. Hiring a property management company may be the best way to collect rent in these cases. Some investors prefer a standardized process approach. This way, rent is collected on time, reducing administrative burden to ensure consistent cash flow. However, this can reduce the pool of potential tenants and cause unnecessary stress to tenants who need to change their methods of paying rent.


Consistency

Regardless of which method you prefer, it's essential to establish a well-defined rent collection process. It must be consistent throughout all your tenants and properties if you manage your properties yourself. This reduces your downtime when collecting rent and is recommended for those who want to collect rent promptly. It also promotes a healthy landlord-tenant relationship. Consistency in collecting rent encourages good tenant habits, ultimately benefiting your bottom line.

When the new month rolls around, there are many worries for both tenants and landlords alike. This doesn’t have to be the case. If you need help setting up various methods to collect rent or need help managing your properties, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online.

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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