Blog Post

Pros and Cons of Different Rent Collection Methods

Dustin Edwards • Jan 11, 2023

Rent Collection Methods Have Positives and Negatives

When the first day of the month rolls around, it’s time to collect rent. Whether it’s your first time collecting rent, or if you are interested in changing how you collect rent, there are many methods you can choose from. Read on to discover the pros and cons of these rent collection methods.


Paper Checks

Paper checks are a great choice because they are secure, reliable, and convenient for you and the tenant. Check payments are made directly from the tenant to you and provide a physical record of the payment. Checks also remove a third party from being involved in the transaction, which will help you avoid unwanted fees.


One of the biggest drawbacks to collecting rent by checks is the time it takes to process each check. Processing a paper check requires several steps, which can be time-consuming and costly. Also, paper checks carry a risk of being bounced, which can incur additional fees for you. Like cash payments, checks can easily be lost or stolen.


Online Payments

The major positive of online payment for rent collection is convenience. Tenants can pay rent quickly and easily online with just a few clicks. This saves time, energy, and money that would otherwise be wasted on having to mail or deliver the rent check in person. Online payments also eliminate the need to keep large amounts of cash and checks on hand, which can be a security risk. 


Online payments are also accurate, can be tracked in real-time and tenants can be notified when their rent has been received. This eliminates the need for you to manually check for payment accuracy, such as if the amount paid is correct.


One of the cons of collecting rent by online payment is its potential for fraud. In an online payment system, tenants must provide their financial information which is vulnerable to being hacked or stolen. Also, you may have to pay fees for an online payment system, which will add up over time. If you’re on a tight budget, these fees are less than ideal.


Automated Payment

Automated payment systems, such as Zelle or Venmo, make it easy to collect rent every month without having to manually process payments. You can set up the system to collect rent on the same day of each month and tenants can set up their payments just once so that their rent is paid on time. Automated payments also provide you with clear records that can be used for tax purposes or in the event of a dispute with a tenant.


One of the drawbacks of automated rent payment is the lack of flexibility it provides to tenants. Some tenants may not have access to a payment system that allows for automated payments.


Cash Payments

One of the biggest pros of cash payments is the ability to track and keep your own records. When tenants pay you in cash, you can easily store the money anywhere you like and keep track of who has made payments. Also, collecting rent by cash removes the possibility of bounced checks or other issues that can arise with other forms of payment. It also eliminates the need to pay any processing fees and provides you with immediate access to the money.


The main risk of collecting rent in cash is the possibility of theft or loss. Cash offers no safeguards for you if the tenant doesn’t make a payment, as there is no record of the transaction. Cash is also much more difficult to track than other forms of payment, such as checks or electronic transfers. Another con of collecting rent by cash is the potential for accepting counterfeit bills, which can result in a loss for you if you don’t catch it in time.


Conclusion

Ultimately, the best rent collection method for your property will depend on your specific needs and preferences. If you’re looking for a fast and secure method, then online payments might be the best option. If you’re looking for an automated system that requires less in-person contact, then automated rent payments might be the best choice. If you have more questions about what may be the best way to collect rent, consider calling us at (562) 888-0247, or feel free to fill out our free rental analysis to see what your rental could yield today.

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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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