Posted by Teresa on November 9, 2010 under Rents and Deposits | 
Would you like to eliminate the need to deposit rent checks? How tired are you of hearing excuses for late rent payments? Want to make it easier for your tenants to pay their rent on time?
Consider online rent collection. After all, if you already pay your bills online—it makes sense to use this technology for your rental income, too. And if you asked your tenants, they’d probably vote in favor of online rent payment.
Five Online Rent Payment Services:
- SmartRentOnline.com: Fees are limited to $2 per transaction; no monthly or setup fees are charged. This service allows you to choose who pays the transaction fee: you, your tenants, or a 50/50 split. Tenants set up their bank account information and rent funds are transferred through Automatic Clearing House (ACH) transactions to your bank. Auto-payment means the tenant doesn’t need to worry about it—rent is deducted on the same day of the month, every month. Or, tenants can choose manual payment with reminder emails.
- Simplify’em Pay Rent: With this awkwardly-named service, $5 per tenant per month, gets you get unlimited transactions, tenant billing, and detailed reports. Full income and expense tracking is available to integrate with the company’s property management software.
- RAMSrent offers landlords and property managers a portal through which tenants can apply for housing and pay rent. Tenants may choose to pay by check, Visa, or MasterCard, with a discount on convenience fees.
- PayourRent.com also allows tenants to set up automatic rent payments through e-check or credit card. It offers additional features, too, such as online rental application and maintenance requests, plus a portal to connect all utilities (electric, gas, cable, internet and more) through one interface. You can even post announcements for tenants to see when they check in to pay their rent. There are no setup fees and no monthly fees for 10 or more transactions per month. Multiple bank accounts are okay, too.
- PayClix.com is a secure site with no monthly fees and full reporting, such as email notification each time a payment is made. Landlords and property managers can choose to accept or reject each payment. This eliminates the issue of accepting partial rent payments from tenants, which can complicate eviction proceedings.
Eliminating the hassle of collecting rent checks could be worth the fees involved in online rent payment services. Check out the sites above (none of which is affiliated with E-Renter.com) and see if there is one that fits your needs!
Pre-screen all tenants as part of your standard application process. Background and credit checks will help ensure you rent to qualified tenants. For more landlord resources, including forms and information on tenant screening, turn to E-Renter.com.
Posted by Teresa on February 3, 2010 under Landlord Paperwork and Forms, Landlord Tips, Rents and Deposits |
Landlords have many options for collecting rent from tenants—some more secure than others. Take a look at our readers’ tips and decide which is best for you.
1. In person:
A dicey choice, for sure, and one of the more old-fashioned methods for rent collecting. Some landlords physically visit tenants and pick up rent, or tenants drop it by their office.
Pros: You see your tenants every month and can check in with them. If you’re personally picking up the rent, you can check on your property. You’ll have the rent in your hand—no “check’s in the mail.”
Cons: If you’re collecting in cash, it’s dangerous. Depending on your schedule and number of rental units, it could be inconvenient and time-consuming (especially if tenants are away or don’t have the rent ready for you when you arrive).
2. By mail: A time-proven method.
Pros: Landlords don’t need to leave the comfort of your home or office. It’s convenient for tenants to write and mail rent checks on their own schedules.
Cons: You’ll often experience a time lag between the day rent is due and when it is received. Who makes the trips to the post office to collect envelopes? How often will all rent checks arrive at the same time? What if your bank charges per deposited item? And everyone’s favorite: How often will you hear that a check is in the mail, got lost in the mail, or was rerouted to Peru on its way to your PO Box?
3. With an online pay system:
Property owners can set up an online payment system account (such as Pay Pal) so tenants can pay online either with a credit card of through a bank account. Or, landlords have several options with online rent payment portals that are easy to set up and use.
Pros: no checks to deposit—rent funds are deposited directly to your bank account of choice. No waiting for checks to arrive in the mail. A much more secure system to receive payments—no cash involved. Some rent collection packages offer reports and other valuable information to help run your business more efficiently.
Cons: there are usually transaction fees involved—so if the rent is $1000, you could actually receive 2% to 3% less. Transfers can take a few days. If tenants pay by credit card, there is always the possibility they will dispute a charge and cause a chargeback, which ties up the funds until the dispute is settled. Not all tenants have Internet access.
4. Direct deposit/Electronics Fund Transfer (EFT):
Pros: More tenants are paying their bills online. Automatic transfer of rent is one less hassle for them. Funds are automatically deducted every month from tenant’s account and deposited to yours. Safe, secure, and no checks to wait for and then deposit.
Cons: There is the possibility that tenants will not have the funds available when rent is due. Plus, there is the small detail of another form to fill out, explain to tenants, and obtain their authorization.
Whether you collect cash, checks, money orders, or just review your bank statements online and watch your funds transfer in, the best method of rent collecting is an ongoing debate with landlords and property managers.
