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There Is More Than One Way To Collect Rent. Here Are 4 Ways To Collecting Rent For Real Estate Investors...
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Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got a quick video on how to use seller financing to flip properties.
Collecting Rents through Personal Collections
- scheduling monthly rent pick-ups
- choose a location that's convenient for you to meet
- Never meet at your personal residence
- Spend time removing personal information from public directories.
- Unlisted phone number
- Internet Directories
- Only allow this to tenants that pay on time - dire circumstances
- Of course if you own a lot of rentals, not the most efficient way for you
Collecting Rent Checks By Mail
- Very common to start out with Mailed-in Rent to a P.O. Box - $180 for the year
- If tenant pays on time, great, little hassle
- Variety of detail to remember - Date its due, address written correctly, correct postage, then of course the postal service delivery
- Important to request certified mail to assure payment delivery
- Requires too much involvement from your resident - increasing the probability of error
Collecting Tenant Rents Through Bank Deposits
- Not very common, but works for specific situations
- Give late payers bank account - preferably separate business account - sweep the funds periodically
- Common for Partial Payments to happen
- Partial Payments may affect eviction proceedings
- Hard to keep Track of Funds paid, and owed if you have multiple renters depositing at the same time
- You can verify funds online - which is convenient
- Not highly recommended, but provides an option for those who have had a bad month
Direct Deposit
- set up with your bank or third party companies
- Make it a company policy for new, or existing tenants
- Sign them up using Name, Email, and Phone
- Select the day you want the account to be debited
- Eight Days Before the debit day - tenant receive payment reminders
- First banking day of the month - Tenant bank accounts are debited
- Three Banking days later - funds are verified and placed into your account
- The residents know its coming
- It's automatic
- And requires minimal effort from your tenants, and barely any from Landlord
- There is a small fee attached per deposit, but definitely affordable for the convenience it offers.
- two month free trial at company called ClearNow link below...
- https://www.clearnow.com/?part=3
Summary, CTA
Collecting rents is never an easy task for Landlords. Of all the solutions we mentioned, we agree that having your tenants sign up for direct deposit, not only assures that rent will arrive on the same day every month, it also minimizes the hassle. If you're currently collecting rent by mail, give this method a try on 1 or 2 properties, and see how you feel. The site I gave you offers a free trial.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.
https://youtu.be/FmSeSG4bxsI
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