Landlords in Michigan can make salaries as high as $131,612 per year. If you strive to be a top-earning real estate investor, rent collection is going to be your biggest burden.
Luckily, there are strategies in place to collect rent efficiently and on time. You can choose one option or offer different methods to make paying rent more convenient for your tenants.
Here's how to start collecting rent.
Online Rent Payments
These days, by far the most common form of rent collection is online rent payments. There are various platforms and rental apps that make it convenient for renters to pay rent and pay rent on time.
If you work with a property management company, they will implement a tenant portal. This property management software makes it easy to collect rent online, track late payments, and offer grace periods.
Some require small transaction fees but tenants cover them.
You can set the portal to take various payment methods to ensure the needs of your tenants are met. After all, the more payment options you offer, the more likely a tenant will pay rent on time.
Rent paid via online is quickly deposited into the corresponding rental account for your records.
In-Person Payments
A business owner might choose to keep collecting rent in person. If you have a good relationship with your tenants, this could be your preferred method. If not, this is a great way to start connecting with your renters.
It's harder for tenants to ignore upcoming rent when they receive a human reminder. You can use this opportunity to enforce the lease if tenants continuously make late payments.
The main problem with this method is that you also have to make manual reminders. This could take a lot of time away from other property management tasks.
Remote investors won't find this method convenient. If you hire a property manager to handle rent collection, they will insist on a different process.
Mail Payments
A small business with one commercial tenant might be able to get away with mail rent payments. This is when a tenant sends their rent amount through certified mail.
The postal system can be unreliable. It takes a lot more time for the funds to hit your account than other methods of rent payments.
For many, this is an outdated method of rent collection. However, some landlords prefer it for their own reasons.
Keep in mind that checks can still bounce. You might have waited for the rent check to come through the mail just for it not to work.
Rent Collection Made Easy With Us!
Rent collection doesn't have to be a hassle. Choosing the right strategy for you will depend on your preferences.
PMI Mid Michigan has been in the business of helping Flint landlords for over 20 years. We remove the burden of rent collection by collecting all funds and depositing them into your account.
We ensure rent is paid promptly to protect your cash flow each month. We offer an On-Time Rent Guarantee that promises you'll receive your payment by the 10th business day or you receive free property management that month.
Drop us a line now to get started!
