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If you're an apartment or rental property owner, you've probably collected rent thousands of times over the years. But have you ever thought about how to collect rent in the most efficient and pleasing ways possible?
The best way to collect rent payments might boil down to your renter demographics. For example, most younger millenniums probably want to pay their rent online, while older renters would rather send a check in the mail.
Here's a look at some of the most popular ways property owners collect rent.
Collecting Rent Electronically
Many property managers now offer electronic rent collection. This means tenants pay their rent online or through a bank withdrawal. Paying electronically means using less paper and not having to worry about your rent getting lost in the mail.
Many tenants prefer to pay rent this way because it helps them avoid being late and takes about five minutes to do. Plus, they can choose to have a record of their payment sent to their email or saved in their tenant account. What's not to like about this kind of convenience?
Using Rent Collection Services
Another option for property owners is to hire a rent collection agency to handle this monthly task. The main benefit is that if something goes wrong, the agency knows the law and is responsible for the whole process, and will handle it for them.
Many agencies use rent collection software to help them stay organized and track all the payments they receive. And you'll be able to stay in the know about the whole process.
If you decide to hire a rent collection company, they will provide you with regular summaries of the income you've received from each tenant.
Going By Your Renter's Preferences
The decision of whether to collect rent online should be an easy one if you take into consideration what your renters want.
If you have a majority older demographic, it makes sense to keep accepting checks and money orders. Many retired people are comfortable with basic computer use and would be okay with paying their rent online.
But others don't trust computers and would rather pay the old-fashioned way. It's better to offer a blend of both options if you have a significant number of seniors living in your properties.
On the other hand, if you have a majority of college students or young professionals renting from you, not offering online or app-based rent payment will probably be a huge negative.
Younger people would much rather pay with the convenience and speed of online payments, versus any other method.
How to Collect Rent and Keep Everyone Happy
So in this article, we've gone over a few of the best ways how to collect rent. Now you know best practices for how to keep your tenants happy, as well as your office staff.
Collecting rent doesn't have to be a pain if you automate it and make it an easy process. Most tenants respond well to convenience perks, whether they're rent-related or apartment amenities.
If you'd like to learn more about property management services in your area, including help with rent collection, get in touch with us.
We're a full-service property management company that works in the Memphis area. We've been around since 2016 and excel at what we do. We'd love to meet you and get to know how we can help you manage your properties, so contact us today!
