Benefits of hiring a property management company for property rental

Share This Post

One of the biggest issues when renting out a property is to collect rent from tenants. It is not always easy to collect money from tenants on regular basis. While one method may work for a person, it may not work for another. Here we are discussing some of the most common methods of collecting rent from tenants, to help people decide which method works best for them.

Rent collection in person by the landlord

Many times landlords prefer to collect rent from their tenants in person at the agreed-upon date. This is a workable solution if the landlord lives nearby. It also gives the landlord opportunity to talk to the tenants and check out the property at the same time. It also makes it difficult for the tenant to a forget payment or be late. However, it can become inconvenient if the landlord does not live close by and it becomes a time consuming activity. Also, if the landlord owns multiple properties that are rented, collecting rent from each one every time can be difficult and very inconvenient.

Dropbox payment

One of the oldest methods of collecting rent is setting up a dropbox for tenants to leave payment in. This is a viable solution if you own multiple units in a property. However, the downside to this solution is that it can be prone to theft. Thus, you have to work on setting up a dropbox that is secure at all times.

Cheque Payment through Mail

One of the old-fashioned methods of collecting rent payment is through cheques. Cheques can be mailed to the tenant. The problem with mailing cheques is that even if the tenant mails the cheque on time, you may not receive it for a few days. If you decide to go with this method, it is advisable to ask the tenant to provide proof from the post office that the cheque was mailed on time.

E-transfer rent payments

One of the payment methods that has gained more momentum in recent times is rent payment through email transfer. This process is relatively safe and very fast. All the tenant has to do is e-transfer to the landlord and the payment is deposited instantly. There is no lag in payment collection time and no margin for error.  This method is suitable only for people who are technologically savvy and comfortable with online banking.

Hiring property manager

One of the most popular methods is hiring a property manager. You can hire a property management company that can take care of all the tasks for you, from finding your tenants, payment collection to property maintenance. This way you get your payment on time as it is now the property manager’s job to make sure the rent is collected on time and sent to you. It is the property Management Company’s responsibility to resolve any issues with the tenants. Your property is taken care of while you can rest easy. The only thing you have to worry about is paying property managers a fee for all the convenience.

Choosing the best method

Once you have chosen the method, it is important to make sure it is listed in the lease agreement to avoid any conflicts in the future. It is also best to clearly list payment instructions to avoid misunderstandings or mistakes.

While one method may work for one person, it may not be suitable for another. If you are dealing with seniors, collection in person and through the mail might be your best option. If your tenant is from the younger generation and belongs to generation Z, online payment or e-transfer might be the most suitable option. If you do not live in the same city as your property your best option would be to hire a property management company that can take care of all the matters, from renting, payment to maintenance. At Entrusted Property Management, we work closely with all our clients to ensure all their rental issues are taken care of, to make the process smooth and easy at all times.

More To Explore