4 Ways to Collect Rent From Tenants

Frank Chen

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.