South Florida is a great place to invest. Real estate values keep going up, and there's no shortage of people who want to join the suntanned way of life down here.
But as someone with rental properties in South Florida, you already know that. You're reading this guide because you're getting ready to collect rent and need tips on the best way to do it.
You're in the right place. We're going over different methods for collecting rent for landlords below.
1. Pick the Right Renters
Doing your due diligence during the screening process will save you a lot of trouble down the line. You know what they say - an ounce of prevention is worth a pound of cure.
While emergencies and accidents happen, you're less likely to have issues with rent collection if you do a thorough screening of your applicants beforehand. That means a background and credit check, as well as references from past landlords. When they apply, it's customary to ask renters for proof of income for the past three to six months.
If you'd rather not do all that, a property management company has intake and application processes in place that will handle the tenant search for you.
2. Use a Rent Collection Software Program
Because we live in a digital age, some companies have purchasable software for landlords to collect rent. The downside of these programs is that they usually cost money to use and charge fees for each transaction.
One benefit of having a property manager is them having rent collection software set up on their end, which means they pay the fees. Depending on the size of the management firm, they may even have their own system, which cuts out the middleman. No intermediary gets you the money faster and with fewer fees.
3. Automatic Deposit
Banks aren't just there to hold your money. They have services you can use. One of those services is the ability to set up automatic debits between accounts for predecided amounts. That means you can set up a debit for the rent price with your tenant's bank every month, which automates the whole process.
The bank does take a cut of this amount, though it will differ with each institution. Before deciding on this option, check with your bank to learn what will happen if your debit is unsuccessful (like the tenant doesn't have enough in their account).
While most of the time, it's the tenant's account that will be charged a fee, you may incur a return charge or other penalties.
4. Use a Rental Property Company
The best option is to hire property managers who have years of experience collecting rent and managing properties. They have all the systems already set up, and their rates are surprisingly affordable.
They have policies in place for any issues with rent collection, like late or incomplete payments. They'll deal with everything so you don't have to.
Collecting Rent: It's up to You
There's no one right way to collect rent. The best option for collecting rent is the one you're most comfortable with as a landlord and real estate investor in Fort Lauderdale.
If this all seems like entirely too much, then it's time to look into rental property management companies. We'd like to be the first people you call. If you know you need help and you're tired of doing too much, call us today.