Do you own an investment property in Layton, Ohio? While Ohio has had continuous population growth for over a decade, it's just under 0.5%. This means that you'll have to work harder to build a rental business.
One of the most important factors in running your rental business is rent collection. You'll need to ensure that you receive your rent payments on time to maintain a healthy cash flow.
This guide will show you the fundamentals for efficient rent collection from your tenants.
Here's what you must do:
Collecting Cash Payments
You may want to consider requesting your security deposit in cash. Ohio law allows you to charge whatever amount you wish for the deposit. You can also consider fully collecting the rent payments in cash.
One major advantage of requesting cash payments is that you'll deter any tenants without financial stability. However, if you don't live close to your property, it may become inconvenient to commute just to pick up your rent payments.
Digital Rent Payment Methods
One of the best ways to collect rent and increase lease renewals is to make the payment process as simple as possible.
The first option is to send a monthly invoice to your tenants. On the invoice, you'll state the amount requested as well as the month for which they'll pay rent. You can include your full address on the invoice. You should also write your bank's routing and account number. They'll then send you the payment via a bank transfer.
Another option is to create an online payment link. You can do this using a payment processor such as Stripe. Your tenants can pay using this online link. The advantage of this option is that they can pay using a credit card if they wish.
This ensures that you'll receive your rent payment even if they don't have the full amount on hand. This is also ideal if you need to reduce late payments.
The fastest online rent collection option is to use a mobile payment app. Through these apps, you can send a request to your tenants. With each request, you can write a note that states the purpose of payment.
Your tenant can then make the payment using the same app. Some apps will then directly debit the money into your bank account within a few seconds. Others will store the money in your account balance. You'll have to request a transfer to your bank. This usually takes one business day.
You don't have to stress about rent collection on your own. A property management company can handle this task for you.
Rent Collection Made Simple
If you follow the steps in this guide, you'll succeed with frequent rent collection.
You'll have no problem building your rental business and ensuring that you can maintain a steady cash flow. You can do it all with the assistance of a property manager.
PMI Home Team is one of Layton's leading property management companies. We have a team with over 20 years of experience helping landlords throughout the city. We know we can help you!
