Collecting Rent on Auto Pilot!
Click Here for the audio only version on the Lady Landlords Podcast
If you have been following along with my journey these past few weeks, you would know that I traded in Snowy New York for Sunny Florida for the Winter. I live my life doing things that make me happy. The sound of the waves crashing makes me happy. The sound of a snow shovel scraping on pavement does not.
But as a Lady Landlord, I have responsibilities, right?
Of course I do! But I like to find the efficiency in systems that free up my time to pursue activities that I enjoy. Don't get me wrong. I LOVE being a Landlord, but that does not mean I love all the tasks associated with it.
And this is why you need implement systems into your Real Estate Portfolio.
Back in the Olden Days, I used to rent. Every month, I would have to write out a check, address an envelope, and realize I was out of stamps....again. Or worse, my Landlord would need to coordinate a time to come pick it up from me.
But wait! There has got to be a better way!
And there is! There are now endless ways to electronically collect rent! You have stand alone transfer apps to tenant management websites with tons of bells and whistles, each there to fit your and your tenants needs.
Here are some things to keep in mind when evaluating which system is right for you:
1. Make Paying Rent easy.
My two favorite words: Direct Deposit. This means that my time is saved as my money is hitting my bank account directly. The less steps it takes and the less hands that the money touches leaves less room for error. My preferred way to do that? PayRent! They allow tenants to pay by credit card if needed and also sends reminders to the tenant directly. This system helps makes your tenant have options on how they pay rent to lessen any financial burden they might be experiencing. Take a listen to this week's episode of the Lady Landlords Podcast to learn about them!
2. Transfer time vs Fees
With all platforms for rent collection, it is important that that money is tracked to make your life easier come tax time. Another thing that platforms have in common is that they all have some sort of fees, limits, and transaction cost involved. (Everybody needs to get paid right? 😂) These are usually nominal fees but you need to weigh the pros and cons of each system before deciding which is right for you. For example, would you be willing to pay a small fee to get your money immediately? Or would you be able to wait a day or two to ensure you got every penny in rent you were owed? These are the decisions we, as Landlords, need to make based on our own financial needs.
3. Incentivize Tenants
I have said many times before that I never expected to be a Landlord. I luckily fell into my passion. But, my background is actually in Psychology. I have never forgotten a lesson about how people react to rewards versus punishment. Common sense tells us that rewards will also work better. So why not implement that into our rent collection? One way I do that, is explaining that payments get reported to Credit Bureaus. Now, that might sound negative as if I am threatening my tenant to ruin their credit if they do not pay me, but I explain that it is reported when they pay on time too which could help INCREASE their credit score! Also, the Rent Collection System that I use tracks on time payment history so that if a tenant is having a difficult financial month, they will actually advance the tenant money so I get paid on time. One good deed deserves another! Use this link to learn more about my preferred rent collection system!
Want to learn more about implementing this and more Tenant Management Systems? Become a Certified Lady Landlord with our Tenant Management program today!