Once a month, you need to not only collect rent checks, but pass that money along to the property owners you work for. As a property manager, it is up to you to find an option that is effective for you and appealing for the owner. There are many different ways that you can manage the process. Here are just a few examples:
You can pay in cash.
Some owners prefer to deal in cash, since they can simply collect it from you when they see you. However, dealing with large sums of money can be confusing and can lead to poor accounting practices. Plus, if renters pay online rather than in cash, you need to make the exchange. There is more margin for error if payments are submitted in this manner.
You can send a check.
This old-fashioned method is time consuming, as it requires preparing physical checks and getting them in the mail. You must collect all the funds you’ve received from residents, both in cash and check form, and change it all into checks for your owners. It is cumbersome from an administrative perspective and costly too – stamps, time and the paper really add up. Plus, there is always the risk that the mail will cause a delay, or that the check will not arrive in the owner’s hands at all. That can result in additional time spent dealing with the payment, and in some cases, direct cost.
You can use electronic payment options.
Another option that reduces the need for excessive paperwork, while providing greater security is electronic, or ACH, payments. The right software allows you to collect rent from residents electronically and send the money that’s due directly to an owner’s bank account. The process is also built right into the rest of the system, so it is easy to track the money going out and tie it to particular properties and individuals.
When owners begin to understand how a payment method may benefit them in the long-term, they may be willing to explore alternatives that they hadn’t in the past – like AppFolio’s ACH. You’ll appreciate the convenience and how it’s tied into a system that offers complete accounting software for property management.