Rent collection is the act of a landlord or property manager gathering the monthly rent payment from their tenant on a set date, as outlined in their lease agreement. DIY landlords typically apply this payment to the property’s mortgage and/or business expenses, such as repairs and renovations. Most landlords collect rent on the first of the month, though you can choose the date you want your tenant to pay rent. To avoid any confusion, requesting rent at the beginning of the month is highly recommended.
How Do I Collect Rent?
Collecting rent properly begins with your lease agreement. Your lease should explain what charges and in what amounts your tenant will have to pay each month, along with information about the consequences of paying rent late. Stay current on your local landlord-tenant laws to ensure your lease complies with late fees and rent collection expectations.
Once your lease agreement is set and signed, you can begin collecting rent. The easiest way to collect payments on time and in full is to make the process simple and straightforward, which is why we suggest letting your tenants pay rent online.
How Do I Automate Rent Collection?
To automate rent collection, you need to use a solution tailored to your property management needs that allows your tenants to pay rent automatically. Don’t waste your time with money transfer apps like Cash App or Zelle that weren’t built with landlords in mind!