When owning rental properties the most import thing in the end is receiving our rental payments from tenants. No rent payment means no revenue, which means we are losing money.
Luckily, with just about everyone having access to online apps and accounts now we can make paying rent easy and efficient for tenants.
Collecting Rent Made Easy
There are two options I want to share with you that will cover tenants that use online banking and those that prefer to pay in cash/check.
1.) Cozy.Co
This a service that accepts online payments for you. Tenants can setup automated payments that get withdrawn from their bank account or by using a debit or credit card.
This service is free for landlords and free for tenants that are using ACH payments directly from their bank account. Note: there is 2.75% fee on payments done with a credit or debit card.
Cozy.co also offers services like background checks, credit reports, etc. for a nominal fee to help screen tenants.
2.) PayNearMe
This is a great service for tenants that want to pay in cash, but allows it to be a recorded transaction for the landlord.
Paynearme provides unique barcodes to give your tenants. The tenants takes their cash and the barcode to a 7-11 or any other approved retailer to make the payment and receive a receipt of it.
The landlord then receives an email or text that payment has been received.
The services doe not cost the landlord anything to use after a initial setup free. It does cost the tenant a small transaction fee to make the payment though.
Streamline Property Management
The goal is to make the management of your properties as efficient and simple as possible. Services like the ones above do exactly that when it comes to collecting rent.
Learn more about real estate investing here: https://scaredycatguide.com/
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I only have one rental but my thoughts are the key is good tenant screening in the first place. I've been blessed that a tenant has never missed a payment. It is of course easier since I live in town and my focus is picking the right tenant and making certain the house stays in good condition.
Good article.
Exactly, I do a whole chapter on tenant screening in my ScaredyCatGuide investing in rental properties book. Sharing all the tips and tricks I use to find a solid tenant. :-)
Very smart ideas. So easy to do. Who wants to ask People for their rent money. 🐓🐓
Businesses on par with technology, very interesting idea that save work and effort .. Thanks for sharing.
I would love to visit my profile and give me your support. Thank you.
If only they had better apps to collect on deadbeats.... get money from a tenant that owed 2 months rent would have required legal action. In the end i just had to let him walk so he'd gtfo.
Any tips on finding a good property management company? I just have one rental so i just deal directly with my tenant but i want to add more to my portfolio and i know that to scale i won't be able to just deal with them all directly and still maintain my day job. Also, my portfolio will most likely consist of properties that are out of state.
Yes, actually I have a process I created for vetting and using property mgmt companies. I have posted about it in some older blogs on my scaredycatguide website and also did a chapter on it in my investing book
Great ideas! Anyone who uses checks or money orders puts themselves at risk for losing out on rent. Mail isn't reliable (and can result in theft!), and dropping off rent every month is an inconvenience to your tenants. Inconveniences mean a higher probability of being late with rent, so it's better to make the process as seamless as possible.