Is It Time to Embrace Modern Rent Collection Methods?

Is It Time to Embrace Modern Rent Collection Methods?

Rent Collection

As society advances into the digital information age, more avenues of reliable electronic payment are becoming available. Are you considering any of these new methods for collecting rent?

Tried and Not-So-True

Checks, money orders, and cash were favored to pay rent for decades, but by today’s economic standards the disadvantages only seem to stand out. Checks can be considered reliable, and money orders perhaps more so. However, since residents generally send these payments via unsecured mail, they can become problematic due to a lack of accountability or postal delivery issues. Cash, while immediately accessible for your spending needs, can require a good deal of diligence to document accurately.

What Could Possibly Go Wrong?

According to insurers at regarding the best way to collect rent, convenience to the tenant may be the most significant factor in getting paid on time. Direct deposit, credit cards, and online portals all seem to make payments more convenient from virtually anywhere. Yet these methods also have flaws, such as:

  • The lessee not owning a bank account or a credit card
  • Additional administrative tasks – maintenance of deposit and merchant accounts or internet portals
  • Potential fees involved with using payment services or online platforms

While no single method is perfect, it is possible to evaluate the risks and nurture a steady cash flow from tenants. With additional steps like responsible spending and insuring your rental income, you could balance complications with collections and keep your business moving forward.