Many property owners encounter challenges with renters paying on time from the start of their rental property business. Yet, other owners go years before they encounter renters who struggle to deliver the needed rent. Either way, it only takes a few renters to disrupt your cash flow before you realize the value of a strong rent collection strategy.
Fortunately, the best Baltimore property management companies have extensive experience with smoothing out the challenges that might otherwise impede rent collection. Here are just a few of the smart moves a rental property owner should consider to improve on-time rent collection rates!
The first strategy is to create a secure online portal that coordinates payments so that you only have to go through one location as a property owner to get paid—rather than multiple sources, like checks, cash, or money orders that can arrive in a variety of ways. Most renters have a cellphone or computer access that allows them to log in, pay their rent, read messages from you, and even sign up for reminders. Even when dealing with some late payments, property owners often find that most residents don't want to be delinquent in their payments. A quick push notification or email alert from your online portal can remind them to get online, pay the rent, and be on their way.
Online portals are also great for documenting issues with rent collection since many renters are more willing to acknowledge a bad pattern of payment lateness if they can see a receipt in black and white (or the absence of one) on their screen. You'll also find that keeping organized is much easier as you grow your property holdings, keeping an eye on who is due to pay and who has paid already.
Some online portals will also include a dedicated app or a mobile-optimized interface, which can help with usability. Renters who have a cell phone and claim that they will pay their rent as soon as they get home or as soon as they pick up their checkbook and a stamp don't have an excuse anymore. There's no reason why they cannot create the payment with their cell phones—whether they are home or not. A property manager can tell you that this isn't a cure for renters who truly don't have the cash flow to pay right now. However, it helps with forgetful renters!
If a mobile-optimized version of your website and the secure online portal isn't feasible just yet, property owners can still collect rental payments by using a mobile app like Venmo or Zelle. With this option, renters can still pay the rent from anywhere (and at any time) and send those monthly rent payments directly to your account for quick processing.
If you prefer paper checks or have a renter who is more interested in paying you with a check, it's still possible to make rent payments easier than before. Consider a secure drop box on-site at your office or through your Baltimore property management company, saving the renter the hassle of mailing the rent.
These secure drop boxes can be accessed 24 hours a day, so there's no excuse that the office was closed and they couldn't pay the rent at the time they wanted to stop by. It may feel like a challenge to have to offer all the payment methods and remove the opportunities for excuses for why the rent is late or missing. However, putting in a little effort to get those systems set up is worth it to receive more rental payments on time and maintain cash flow.
What's the easiest way to achieve consistent cash flow every month? As an experienced property management company, Renters Warehouse BW Metro offers a program that takes the hassle and guesswork out of collecting the rent—while ensuring property owners get paid on time every month! Our Guaranteed Rent Program aids your cash flow by giving qualified property owners their monthly payments (even when renters are late with their rent).
With this program, there is no more wondering whether the payments will come in or not! Our property management team takes charge of collecting rent while you enjoy consistent monthly payments.
Property management is much more than a maintenance or rental marketing team. The best property managers have strategies and payment options to collect rent. Still, not every property management company has a Guaranteed Rent Program like the Rent Estate™ Advisors of Renters Warehouse BW Metro. Our extensive experience in the field of rental properties gives us a leg up in nearly every aspect of managing a rental property, and we want to share that expertise with you! For all your Baltimore property management needs, reach out, and let's talk about how we can help!