There are nearly 50 million rental properties in the US. Perhaps you're a landlord in charge of one or more of them. And with that role come many responsibilities, some of which may be entirely new to you.
One question you may have is how to collect rent from your tenants. Here are our best tips on how to master rent collection, no matter how many people you have on your rental roster.
How Not to Collect Rent
Before we tell you how you should collect rent, let's go over the methods that are unsafe for rent collection. For starters, it's not advisable to collect rent in person if you're going to ask for it in cash.
You never know who's watching you while you collect rent, and they will get used to the time and place you come to get the money. If someone knows you are carrying a large amount of cash on you, you could be in danger. It's better to skip this method.
You should avoid giving your tenants your home address for mailing rent to you directly, too. This doesn't apply if your tenant is someone who already knows where you live, such as a family member or close friend. Otherwise, though, it's safer for you to apply for a PO Box to collect your rent checks if you choose to receive them by mail.
How to Collect Rent
To make things easy for yourself, you'll want to make rent due on the first of each month. Your rental property tenants will probably receive their work paychecks around the same time, so it will be easier for them to budget out the money they owe when it's time to pay you.
Now, if you choose to have your tenants mail their rental checks to a PO Box, you shouldn't expect them all to arrive on the day they're due. The mail can slow things down, so wait five to seven days to check your mailbox to collect the checks.
If a tenant's check doesn't arrive on time, be sure to check the stamp on the envelope to find out when it was actually sent. That way, no one gets in trouble for being late when, in reality, the post office dropped the ball.
Of course, not all landlords want to deal with this much paper. It's up to you if you'd prefer to take digital payments, but it could be an even easier and quicker option. Your tenants may prefer this, too, since ordering checks from the bank can cost them, while digital banking is often free.
Successfully Manage Your Rental Property
Ultimately, it's up to you how to collect rent. But there are a few methods to make things easier and safer for you as a landlord.
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