The Best and Absolute Worst Methods for Collecting Rent

The foundation of any landlord’s rental property investment is rent, which means collecting rent is important. Unfortunately, collecting rent can be a nightmare for many landlords.

There are many ways a landlord can collect rent, but not all of them are ideal. Unfortunately, some are downright risky.

  • The Good

The best way to collect rent is via an automated online rent collection system through a property management company. There’s no simpler or more convenient option for both landlords and tenants. 

Renters can enjoy automated payment methods, instant account updates, convenient payments from anywhere, anytime features, which may also include incentives and bonuses, depending on the type of the program.

For landlords, online rent payment offers automated recordkeeping, instant payment acceptance, automated late fees, and collection. This eliminates the traditional hassle and headache of manually collecting rent and updating financial records. Ultimately, online rent payment apps are the way to go for the utmost convenience and accuracy.

  • The Bad

Accepting money orders, cashier’s checks or personal checks is a rent collection method that offers traceability, but there are plenty of inconveniences that can come along with it.

While a check can quickly provide physical proof of payment, it can also bounce, leading to insufficient funds, fees, and headaches for both tenants and landlords. Both parties still need to physically exchange payment, and the landlord must cash it or deposit it and insert it into bookkeeping software.

  • The Ugly

The absolute worst method of collecting rent payments in cash. Cash doesn’t provide irrefutable evidence of payment, and it can be easily misplaced, and ownership cannot be proven. Like checks, cash must be physically handled and recorded.

Professional Online Rent Collection 

Reliable Property Management offers an array of property services, including an automated online rent collection system. For more information, contact Reliable Property Management today by calling 443-869-3799 or by filling out this easy contact form.