No matter where your property is located, or how many tenants you have, one thing stays the same: every month, you need to collect rent.
But collecting rent can be tricky, from keeping track of payments to issuing late fees. You want this process to be as easy and affordable as possible. So, which rent collection method is right for you? We’re going to review the most popular payment options:
What To Expect
When you’re choosing a rent collection option, consider the following factors:
- How many tenants are you collecting rent from?
- What is the distance between your rental properties?
- How will you keep track of who has paid, and who hasn’t?
With these questions in mind, the next step is choosing which payment option will work best.
What Are The Common Payment Options Available For Tenants?
These days, you can receive rent payments online or in person. However, you may not know which method will be the most accessible and convenient.
Each rent collection option has its pros and cons. Here are a few commonly used payment methods:
If you prefer to do things the old fashioned way, this might be the route for you. However, it’s hard to efficiently manage rent payments when you have multiple properties. If you want to receive rent in a timely manner, you might choose an online option instead.
With this method, tenants drop off rent cheques at a designated address. This might be convenient for you, but less so for your tenants. For safety reasons, we don’t recommend using your personal residence as a drop-off location.
You can ask your tenants to mail rent cheques in envelopes. But if you collect rent via mail, you may not always receive payments on the first of the month. There’s also the chance that the letter gets lost in the mail (or that your tenant claims it did).
Direct transfers are one of the quickest and easiest ways to send rent, both for tenants and for landlords. At Premier Property Solutions, over 80% of our residential tenants pay rent via direct transfers.
Using a cash management system, property managers can set up pre-authorized debit transfers from their tenants. Alternatively, tenants can send e-transfers via email through their banking application.
Property Management Companies
Property managers take care of all aspects regarding rent collection. They’ll keep track of which tenants have paid on time, and which ones have yet to do so. Our property management company accepts multiple payment methods to accommodate all of your tenants.
What Happens If A Tenant Doesn’t Pay Rent?
Most landlords don’t mind if a new tenant is a day or two late with rent. But what happens if their rent is 5 days overdue? If late or missed payments become a habit, it ends up hurting your bottom line.
In these situations, property owners have a few options:
- Inform the tenant that they are at risk of being evicted, and serve them with a notice.
- Charge a fee for the late payment and set up a payment plan in writing.
- Apply for an Order of Possession from the Residential Tenancies Branch to enforce a Notice of Termination.
- Set up a Mediated Agreement with the tenant through the Residential Tenancies Branch, or enforce the Order of Possession and evict the tenant.
Evicting tenants can be a complicated process. Property managers can help evictions go as smoothly and fairly as possible.
Find Out How Much Rent You Can Charge For Your Property Now!
At Premier Property Solutions, we provide comprehensive property management, including maintenance and repair services. Our specially trained staff can handle everything from RTB relations to property maintenance.
At our professional property management company, we strive to be accommodating, which is why we accept several payment methods. To arrange rent collection services in Winnipeg, contact us today, and we’ll set up a free consultation.