Around 6 million Americans, or about 15 percent of the population, are behind on their rent, with Alabama topping the list.
Proper rent collection is essential for investors and owners to pay the bills, such as property taxes and utilities. You want to make rent collection simple and secure for you and your tenants.
Collecting rent includes bank withdrawals, online rent collection, and in-person payment. Lease agreements discussed during tenant screenings should dictate how you'll collect rent.
Read on for some of the top rent collection strategies in Montgomery, AL.
Bank Withdrawals
One of the easiest rent collection strategies is to set up a bank withdrawal system. Tenants give you their banking information, and you withdraw the money on a specific day monthly. Ask your potential tenants if this is the best way to collect rent during the tenant screening.
This system is one of the most efficient. It's automatic and keeps the books up-to-date. The bank provides all of the payment records for accounting purposes.
Online
Online rent collection through a payment portal is a popular rent collection strategy for many. It's safe and secure, allowing people to use their laptops or desktops to make monthly payments. People may pay on the first of the month or during the grace period.
Moreover, tenants may also pay automatically each month through the online portal system.
Smartphone apps are a similar way to collect rent online. According to Pew Research, the number of Americans with a smartphone is more than 85 percent. Payment is at a tenant's fingertips!
There are no excuses for late fee lease payments with online rent collection. The option to pay online is always there for tenants.
The property management company can also email or text to remind people to pay their rent before a late fee lease payment takes effect.
In-Person
Some large complexes or companies still use in-person rent collection where people walk up to a window and pay their rent.
It gives tenants peace of mind that their rent is paid on time.
However, rent collection centers must have a person at the window. It might be too expensive to staff a rent collection window.
Many people still prefer to place a rent payment in the mail. The U.S. mail system is reliable, safe, and secure.
Tenants use their canceled checks as a receipt. Mail typically arrives within three to five days.
Top Rent Collection Strategies in Montgomery, AL
Top rent collection strategies in Montgomery, AL, include bank withdrawals, online rent collection, and in-person payment. Tenants can also pay their rent through the U.S. mail system. Following these strategies helps make collecting rent easy and efficient.
Using a property management service to figure out rent collection strategies is the best way to get your monthly rent on time, every time. Why struggle with chasing people down for rent? Professionals can get the job done in a well-organized and structured system.
Please schedule an appointment with us today, and let us show you how we can make rent collection simple.
