Rent collection can be made as easy as possible, with the right help. Landlords always have the options to choose the mean that will make the process easier.
Whether they want to do it in the old fashioned way or with modern method, they have the flexibility and freedom to make the decision. However, landlords should consider about the money collection process carefully if they have more than one property so the entire process can be streamlined.
Understanding Rent Collection Term
Rent collection refers to the action done by property manager or landlord to gather (monthly) rent payment from the tenants within a set date, which has been outlined within the lease agreement. Most landlords may choose the first period of the month to collect the rent, but there are some landlords that may be willing to extend the date to the specific date, as the maximum.
For instance, tenants are allowed to pay at the latest of the 5th of every month. But most landlords want to avoid confusion and unnecessary drama, so they mostly want the rent to be paid at the beginning. Tenants are expected to pay always on the 1st (of the month).
How to Do the Collection?
Property rent collection should start from the lease agreement. The lease should explain the amount of rent that tenants must pay on a monthly basis, along with the charges and consequences of any late payment. You should also stay updated with the local tenant-landlord laws to make sure that the lease agreement goes along with the expectations related to the rent collection and the late fees.
When the lease agreement has been set and then signed, then rent collection can start. The simplest and also easiest way to deal with payment collection is to make it straightforward and direct. Paying rent through the online system is one of the ways to deal with the easy processing.
Automatic vs Manual System
In the past, landlords would deal with manual collection. It means that landlords would come to the tenants, asking for the payment. Then, after the tenants pay up, landlords will leave the property – and probably moving to others, if there is any.
This kind of manual collection is possible when you only have one property. But when you have more than one property, dealing with such manual collection can be a hassle and a handful. Being a landlord can take up a lot of time and efforts.
Juggling between managing rent payment, dealing with tenants, and maintaining the property (or properties) can be a lot. Not to mention if you have to still deal with your own personal and also professional life. That’s why automatic service can be viewed as a plausible (and ideal) option.
Landlords can really enjoy the benefits offer by automatic service, such as rent reporting and (online) rent collection. Such a service can be an asset for landlords, especially for those who want to cut down the time for bookkeeping and financial tasks. Only landlords can appreciate the perks delivered by automated rent reminders, reports, and collections.
The Benefits of Automatic System
Naturally, there are some basic perks of having such automated system in the rental business:
- There would be more punctual payment
- It saves effort, money, and time
- It eliminates person to person contact
- It offers streamlined management operations
- It encourages secure and safe payments
- It’s flexible and convenient
- It is immediately updated to the system, especially for the (rent) payment status
- It has instant and accurate record keeping
Moreover, this kind of automatic system can also be used for other functions or purposes, such as rent reminder, eviction process, and others.
This kind of system typically comes with multifunctional usages and operations where users are able to utilize it for different actions and purposes. So, with only one system (or program or app), you can enjoy various benefits and usages.
Final Words
It’s really up to tenants to choose whichever method they see fit for their rental business operation. Whether they want to do it manually (in the old school way) or they want to have the automatic modern system, they are free to decide it.
What’s important is that the rent collection process should be easy, convenient, and drama-free for both the tenants and also landlords.
