The Benefits of Outsourcing Rent Collection for Your Rental Property
As a landlord, you have a lot on your plate. From property maintenance to property financial routines, there's always something to be done. However, one of the biggest challenges that landlords face is collecting rent. Despite rent not being the primary source of income for most landlords, the process of collecting it can be stressful and time-consuming. Experts at Propline have highlighted 6 common rent collection problems:
- Unintuitive Collection Methods: Cash or checks are still frequently used by landlords, which can be inconvenient and ineffective for both tenants and landlords. Online rent collection services may be a better choice because they let tenants operate credit or debit cards, connect the portal to their bank accounts, and guard against lost payments.
- Recurring Delays: Rent payments from some tenants may be made late on a regular basis, giving landlords cash flow issues. Landlords should establish clear due dates (ideally on the first of the month), use online rent collection services with email reminders, and speak with tenants about payment plans or adjusting due dates as needed to address this problem.
- Inadequately Stated Rent Policy in the Lease: Rent collection issues may result from a lease agreement that is ambiguous or poorly written. Clearly state the rental amount, the due date, and the method of payment to prevent this. Include information on any grace period as well as any penalties for late rent.
- Accepting Payments in Parts: Accepting partial payments may dangerously suggest to tenants that paying rent late is acceptable. Rent collection issues may arise more frequently as a result of this.
- Not Providing Payment Methods: You might discover that your tenants find it simpler to make their payments on time if you are flexible with how or when they are due. It may be advantageous to put in place a system that allows tenants to select between weekly and monthly payments.
- Ineffective Tenant Screening: All of your tenants should be able to afford the rent each month thanks to a solid tenant screening procedure (tasks like checking potential tenants' credit scores). Choosing tenants who can consistently pay their rent in full and on time will be made easier for you by a thorough tenant screening process. (read our blog on tenant background checks)
Like every aspect of life, rent collection experienced digitalization in recent years. It has become simpler thanks to services that help landlords collect rent from tenants. These services enable landlords to collect rent 24/7 from any location and to present up-to-date data on rent payments in real time. Through an integrated accounting system, landlords can keep track of payments and get alerts when payments are made. These services are advantageous to landlords as well because they give tenants a simple way to pay rent online. For real estate investors, the tools' record-keeping features are also crucial. Overall, services for collecting rent have streamlined the process and enhanced the experience for both landlords and tenants.
Included in Propline’s comprehensive property management services, the online rent collection feature has made life easier for real estate investors, especially international real estate investors. By providing safe online payment and on-demand financial reports, our property management services offer peace of mind for investors who want an easy investment experience.
- Rent collection is one of the most important, and maybe the most important tasks in rental property investment.
- Online rent collection services reduce investment risks for landlords, decreasing the possibility of financial and legal difficulties they might face.
- Some property management services include rent collection services.
The Benefits of Rent Collection Services
Rent collection services have countless advantages both for landlords and tenants. Reducing the possibility of bitter rental investment risks like eviction requirements and improving the tenant-landlord relationship, these services increase your tenants’ satisfaction, thus increasing ROI. However, the main benefits of rent collection services are:
- Save time managing rental payments, especially for multiple properties.
- Offer more payment options, including online platforms and recurring payments, which increase on-time rental payments.
- Provide added security with credit and criminal checks on prospective tenants.
- Improve relationships with tenants by removing the need for financial discussions and providing a transparent billing system.
- Offer reliability when unexpected issues arise, such as illness or travel.
- Provide convenience with automatic reminders and direct deposit payments (landlords can easily get rental payments in their bank accounts).
- Offer late rent reminders to help tenants stay on track.
- Keep payment records in check without the extra paperwork.
Property management experts at Propline explain that a healthy rent collection record is a necessity for a successful rental investment. Thus, all these benefits are key enablers for other streamlined services of a property management company such as property maintenance and inspection, financial reports and tax follow-ups, and rental property marketing.
Online Rent Collection Services Are Embedded at Propline Property Management
Propline has developed an integrated platform (similar to other property management software) for its property management services where you can easily follow all your services and documents and receive your rental payments safely. None of these services have extra costs and are all included in the property management package.
Besides a comprehensive digital platform and interface, all our services are carried out by professionals in the field. We have an extensive experience and seamless know-how in property management, maintenance and furnishing, and financial services and regulations in Turkey.
Using Propline property management services, you will be free from all complications of owning a rental property. You can follow all procedures and transactions via Propline’s digital platform. Our experts will handle all the tasks from tenant screening to rental collection (an online rent payment system is also available) on your behalf without any extra cost. You can also benefit from other services we provide such as legal services, financial advisory services, and turnkey property furnishing services.
What are the benefits of using online rent collection services?
Online rent collection services provide flexibility, convenience, and security. Using a variety of payment methods, tenants can conveniently pay their rent online, and landlords can monitor payments in real time. Additionally, it eliminates the need for time-consuming and occasionally dangerous physical rent collection from tenants by landlords.
Can I use a rent collection service if I am not based in Turkey?
Yes, rent collection services embedded in Propline property management work with international property owners. They can collect rent from your tenants in Turkey and deposit the funds into your account overseas. However, it's important to check if there are any restrictions on sending money out of the country.
How much does it cost to use a rent collection service in Turkey?
If you use Propline property management services, you won’t pay extra for rent collection services. Rent collection services are included along with other services such as tenant screening, maintenance, and financial and tax follow-ups.