What’s the Best Way to Collect Rent from My Costa Mesa Tenants? 

One of the most critical aspects of having a lucrative rental property is receiving monthly payments on schedule. However, in order to get those funds, property owners must first decide how to collect rent. Rent can be collected in a number of different ways. However, the ideal ones are those that fit your property management approach as well as your tenants’ demands and needs. To assist you in making a decision, the following information will outline what you need to know in order to select the most appropriate method of rent collecting for your situation.

Variables to Consider

Choosing the optimal rent collection strategy for you is dependent on a number of criteria. Consider how many tenants you’ll need to collect rent from each month, how far you live from your rental property, and how comfortable you are with using technology to manage rent payments. Each of these factors can significantly reduce your selections. You should also think about how often and how you want to interact with your tenants. While frequent positive communication benefits Costa Mesa property managers, showing up each month to collect rent may convey the wrong message to your tenant.

Convenient and Well-Documented

Another critical factor to consider when selecting a method of rent collecting is if the approach fits two critical criteria: ease and the capacity to document each transaction. Now more than ever, today’s tenants are looking for tech-driven amenities to make their lives easier. A recent study indicated that 83 percent of consumers prefer to pay their bills online. However, keeping solid records of all rent payments and other transactions is just as vital as ease. For a well-managed rental property, finding a payment mechanism that can provide both is crucial.

Payment Methods

Traditional and electronic payments are the two main types of payment procedures. Traditional payment options are just what you’d expect: cash, personal check, cashier’s check, or money order. While there are times when a money order or cashier’s check is appropriate – for example, when a security deposit is required — receiving cash or personal checks is not optimal in the majority of cases. Cash payments are difficult to track, and personal checks present a slew of issues, ranging from slow delivery to lengthy wait times for checks to clear the bank.

Electronic payment methods, on the other hand, have expanded in number and variety in recent years. Electronic payment options such as ACH transfers and Square are available to property owners, but money can also be delivered via payment applications like PayPal, Zelle, and Venmo (to name a few).

The majority of electronic payment methods maintain a record of each transaction, which automates paperwork. However, some tenants may be concerned about the security of transmitting money over the internet or choose not to use payments applications for their monthly fees. The fees are the largest drawback for property owners; all electronic payment methods often come with additional fees, so do your homework before deciding.

Automate and Communicate

With so many payment options, it’s critical to plan ahead of time how you’ll handle rent collection. The more automated the form of a rent payment that you select, the simpler the entire procedure may be for you. On the other hand, tenants may feel confined if you take only one form of payment, particularly if it is based on a technology they are unfamiliar with. As a result, it’s critical to communicate with your tenant and consider offering two or perhaps three methods of rent payment. As long as each method provides the convenience and documentation you require, this combination strategy may be a suitable compromise. Rent collection does not have to be complicated, but figuring it out on your own might be tricky. Rather than that, consider the advantages of employing a property management firm that accepts online rent payments. Give us a call at 951-560-1600 if you’re ready to delegate the day-to-day chores of managing a rental property to the pros.