Having a proper rent collection system for your Jacksonville rental home can provide you with peace of mind. You don’t have to track down tenants in person or wait in frustration for the rent payment to arrive.
Instead, you can just sit back and easily keep track of who paid and who didn’t. Then you can send the proper notices when the tenant did not meet the deadline for paying their rent dues.
Several methods for collecting the rent exist. You can pick which one is more effective to use in your rental property.
If you want to learn about the various rent collection systems available to landlords, keep on reading!
Before Implementing a Rent Collection Method
Prior to picking a suitable method to collect the rent, analyze the following factors:
Size of rental units and Number of Tenants
Handling around 20 rentals or dozens of tenants can run you down if you collect the rent in person every month. You’ll need a more efficient system to save time and energy.
Proximity to the Rental Property
If you live a good distance away from your rental space, it’s smarter to outsource the rent collection service. Another alternative would be using an electronic transfer/ payment channel for convenience.
Depending on your management style, you may prefer in-person interactions. Some landlords who prefer a hands-off style of management may however choose to collect rent payments through the mail or electronic transfer of funds.
Knowing your management approach and preference will help you select a suitable collection system.
Understanding of Technology
Some landlords are tech-savvy while others prefer the face-to-face method of collecting the rent. Your comfort level and understanding of technology will also help you hone in the most effective rent collection method.
Ways to Collect the Rental Dues
Landlords have a variety of methods available to collect the rent from their Jacksonville rental home. They can meet the tenant in person or maximize the convenience of digital payment.
However, whatever method they feel best works for them, they will still have to detail the payment procedure in the leasing agreement. Being specific and clear on your lease helps avoid future conflicts with the renters especially when tackling financial payments.
Drop-off Location Method
Landlords who have an office can also permit tenants to drop off their rent payments there. This neutral location gives the landlord more privacy.
If you allow tenants to pay at your residential home then they would know where you live and they might visit you in the future if they have worries. It’s best to keep your home address private.
However, if you live in the same Jacksonville property then your tenants already know where you’re living.
If you’re opting for an in-person/ drop-off collection system, encourage tenants to avoid dropping off wads of cash when you’re not around.
Aside from the danger of theft, it’s also difficult to verify the full amount placed inside the envelope. A renter may also over declare the rent money contained inside.
Online Rent Collection
Given the digital payment platforms available in the market today, landlords have plenty of online payment channels to choose from. Among these online sites are RentMatic, RentMerchant, and ERentPayment.
Depending on the payment plan you prefer, you can have basic services or one with more features such as a chat service.
Other popular rental payment channels are Paypal, Zelle, and Venmo. Check out the pros and cons of each platform to determine which one will meet all your needs.
Some services may be free but the transfer time is longer. Others may require more information from your renters.
You also want to consider the fact that some tenants in your Jacksonville rental property may not have easy access to the online platform. It’s good practice to always leave an alternative rent collection method such as payment through the mail.
Mail Rent Collection
Another effective way for tenants to pay the rent for your Florida rental property is through the mail. If you prefer fewer personal interactions with renters or live out-of-state, the mail rent collection method might work best for you.
It should be noted however that delays can happen whether intentional or not. The mail rental payment method could also be abused.
Examples of this would be making a partial payment or not paying at all which could be dismissed as the check being lost in the mail.
To avoid confusion and other issues, landlords can request for a mailing certificate to be obtained at the post office. This can be presented as proof that the renter really did send the rent by its particular date.
In-person Rental Payment
While it takes effort to go door-to-door and collect the rent each month, some landlords are more comfortable touching base with tenants. If they live in the same area or property, it’s also convenient for them to personally collect the rent.
If you’re only managing one or two rental units then collecting the rent in person is manageable. The advantage is you can have the payment right away and verify the amount too.
You can also issue a receipt. The disadvantage is you need to sync up your schedule with the tenant so you’re both available at a specific time.
Hire a Management Company
Hiring the services of a property management company to collect the rent on your behalf is convenient for property owners.
You can also consult with them and sign up for other property management services such as tenant placement and additional property maintenance and repair.
This provides you with more time and peace of mind because all levels of the management of your rentals will be handled by experts.
As a landlord, you need to analyze what type of rent collection method will be most agreeable between you and your tenants.
You may be comfortable with using electronic fund transfers but if your renters prefer otherwise, you may have to make adjustments and provide other payment options in rent collection. You can also hire management experts to help guide you on the best methods or to handle the process for you.
At Gifford Properties & Management we will ensure that the rent collection process goes smoothly each month and will handle any issues on your behalf. Contact us today to learn more about our services.