A streamlined rent collection process is important for collecting payments on time and ensuring that you do not miss out on any defaulters. There are several different methods of collecting rent that can make life as a Philly landlord easier for you. Here are some of the most popular ones.
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Set Up a Rent Drop Box in Philadelphia
If you are one of the occupants of the rental home (in the case of a multi-family building), or if you have a dedicated office from where you manage your rental properties in Philadelphia, you can set up a rent drop box at either of these places. First, however, ensure that the places are safe and only a few people have access to where you keep the rent collection box.
Inform your tenants that they should not put money directly into the box. Instead, you can use the box for collecting certified checks.
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Collect Rent by Mail
Mail is one of the most traditional ways of rent collection for Philadelphia landlords. However, there are several risks involved with this method. For example, when the occupant sends the check through the mail, they will receive a token or a slip from the office, which can be used as proof that the rent is paid. Only the occupant would know the amount that they put in the envelope while posting it. They could send an empty envelope and get a slip to use as proof.
The mail could be delayed, misplaced, or sent to the wrong person. Hence, collecting rent by mail is a reliable option only if the renter is a trusted individual.
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Collect Rent in Person
Collecting rent in person might seem like a tiresome experience at first. However, it can serve a two-fold purpose – you visit the rental property for collection and simultaneously conduct a property inspection to see if the tenant is maintaining it well. You can also exchange a few words with them during the process, which can help you improve your landlord-tenant relationship. Having said that, collecting rent in person can quickly get exhausting, especially if you have many properties.
Online Rent Collection Methods
- Electronic Fund Transfers
Electronic fund transfers, such as an ACH payment, are easy, reliable, and well-regulated to collect rent. You can ask the tenants to set up the authorized bank account from where they will be making the payment. They can further choose to set up automated recurring payments.
However, know that once the tenant initiates the payment, it takes three days to get transferred to your account, considering bank and public holidays. If you are fine with this window, ACH transfers can be a hassle-free way of collecting rental payments.
- Use third-party payment methods
PayPal is an online payment gateway that can be used to transfer money online from the tenant’s bank account to yours. It is a safe and reliable mode of payment, and nearly everybody has a PayPal account these days.
Alternatively, you can use online transaction apps such as Venmo, Square, Apple Pay, or Zelle. Some of these apps also integrate with your website, making it easier and faster for your tenant to pay rent.
Having only one payment method can be frustrating for tenants, so have a combination of online and offline rent payment options.
Hire a Property Manager
While there are several techniques and software that you can use to collect rent on your own, hiring a professional Philadelphia property manager takes the load off your shoulders. Property management companies have a streamlined rent collection process in place, and they can ensure timely rent collections for your rental.
In addition, if there is a delay or nonpayment of rent, they can help you take the necessary actions like sending warnings or notices, pay or quit notices, and further procedures.
TCS Management is a full-service property management company headquartered in Philadelphia, Pennsylvania, also serving Cherry Hill, NJ, Wilmington, Delaware, and the surrounding areas. We focus on single-family and multi-family residential property management of homes, condos, townhomes, and apartment buildings.
We offer effective rent collection and property management services in the Philadelphia area that make your rental business profitable. Our experts can help you with lease creation, rent collection, inspections, maintenance processes, and any other concerns you may have regarding your rental unit.
For more information, contact us at TCS Management.
