Which Rent Collection Method Suits You Best?

10/24/2022 2:54:09 PM

As a new landlord, the headache that comes with property management can sometimes be unbearable. Unlikely to you, you cannot trust anyone to collect the rent and manage your rental properties. You also might not have the technology know- how that comes with the use of a smart phone But every case is different depending on different situations one may be in. Let’s take a look at the different ways landlords can use to collect rent.

Mobile Money (Paybill)

Paying rent via M-Pesa Paybill is by far the most convenient way to pay and receive rent in Kenya. All the landlord has to do is to acquire the Paybill number from Safaricom and issue it to the tenants. The tenants then pay the money straight from their phones and the owner receives the cash immediately.

 Once the tenants pay, they receive a confirmation message stating the amount paid and the time the cash was wired. As the landlord, you can ask them to share the messages with you, and you then generate the receipts for them.

Online Payment

You can own rental property in a certain country in which you do not reside. In this case, online payments could work best for you. Some household names of online payment brands are PayPal and Worldpay. With PayPal, you only need to give your tenants your email address that is linked to your bank account and they easily wire the money to you. The main downside to this method is if you are not secured, hackers can easily get your important information and steal from your account.

Collecting in Person

Just like in the above situation, collecting rent in person is suitable when your tenants are not so many and you live near them. This method saves you money in terms of transaction and withdrawal fees.

Bank Deposits

This is most convenient when the rent is high. It may be risky and costly sending so much money using mobile money or any other method. This is most suitable for commercial buildings. You only need to provide your tenants with your bank account number and they deposit the money in your account, and then they send you the receipts.

Drop-Off in a Specified Location

If you have an office near your rentals, you could simply ask your tenants to make the payment in the office. However, this can only work in situations where the rent is not high. With lots of money, thugs might steal from you or your tenants.

Collect through a smart property management solution - SILQU

SILQU is a fully featured cloud-based property management solution providing rental property management, from rent collection, tenant relations and placement, marketing, accounting, invoicing and billing payments to records and reports of disbursements, collections and customer support.

SILQU is an all-in-one cloud-based rental solution that helps you effortlessly manage your finances, tasks, and tenant responsibilities while it enables you record everything in one place, no need for expensive add-ons or multiple property management systems.

It helps you keep your tenants informed by easily sharing information such as tenancy agreements, payment details and other important documents.

Easily track your rental income and expenditure and use a reporting suite to analyse your property business as the system runs on a powerful in-built accounting engine that was designed specifically to manage property finances.

We would love to hear from you. Free sign up and 30 days Trial. Call us for a free demo

 

Credits; Emomeri Maryanne

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