Landlords and rent collecting

How to landlords can collect rents

It is commonly known that a lot of tenants are scammed by the owners of flats they live in. However, it is also possible that landlords could be scammed by their tenants. The most common problem that tenant may cause is delays in paying rent and even no payment at all. In this article, we would like to present you several methods how to effectively collect money from tenants. In order to avoid problems with collecting your rent, you as a landlord should take into account four very important rules.

First of all, there is recommended to collect money in person. However, before you start practicing it, keep in mind that you should never collect rent in your private home. Tenants should not even know where their landlords live. Otherwise, snippy tenants may knock your door every week, or month for any stupid reason. Because of it, you should also spend time on removing from the Internet and public directories any information about you. It is much better to choose a neutral and convenient place of meeting. At the beginning, you should also determine the schedule of monthly meetings with your tenants, which means that before they move to your flat, precisely determine that you want to be paid in advance on the 10th day of each month. Thanks to this, tenants are aware of they always have to be prepared for this time.

Another way to collect your rent is by mail, which is very easy and much more convenient than personal collecting. There are various online platforms which draft money from the tenant’s bank account and transfer it into yours. Thanks to this method, you are always paid on time, but remember that you should always ask for certified email to assure your payment delivery. Moreover, collect all checks confirming transaction, but sometimes they might be lost, stolen or misplaced. This method is also related to additional costs that you have to incur, because online services will not provide you with your money for free. You will have to pay annual or monthly fees for using such services.

The third method is rents collection through bank deposits. It is not common method but known as really efficient. You should provide your tenants with bank account details, the most preferably of the separate business account. It is really convenient method, because you can verify funds online, but there is no guarantee that your tenants will make payments. In case anything happens to tenants, you will not be automatically paid.

The last method is direct deposits. It is automatic way requiring the minimal effort from tenants and barely any from you. Firstly, you need to set up it with your bank or Third Party Company. You need to sign your tenants by using their names, emails, or phone numbers. Then select the day you want their accounts to be debited. Eight days before the debit pay, tenants are reminded about their payments. Three days after first banking day, money is transferred into landlord’s account. Thanks to this method, money will be on your account on time every month.

Robert Paulson

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