A rental property is undoubtedly one of the best investments you can make nowadays because it is always in demand and highly profitable. As a UK-based landlord, you may even enjoy more money than other landlords worldwide. According to the National Housing Federation’s 2015 research, UK rents average £750 per month, compared to the European average of £400.
However, as a newbie landlord, it is essential to have an efficient and effective method of monthly rent collection to get your money on time and keep track of which tenants are up-to-date or behind on payments. So if you’re just starting out as a landlord, here are some of the best ways to collect rent more effectively from your tenants.
Hire A Property Management Company
You can completely outsource rent collection to a property management company in 2022, so keep this in mind. A property management company is particularly worth considering if you own multiple buildings and lack time to follow up on rents with all tenants. This company will not only collect your rent payments on time, but they can also receive and act on all tenant complaints. Additionally, a good property management company can easily handle maintenance problems and fill tenant vacancies. You can find the right property management company for you by going local, reading their reviews, and inspecting their licenses and certifications. To get started, simply sign a contract with a reputable company and pay the agreed-upon fee based on the services you sign up for.
Many banks now offer painless bank-to-bank transfers such as Faster Payments, standing orders, and direct debits which you can set up to receive your rent. Setting up these payments is simple and hassle-free, and usually requires just a one-time set-up for your tenants. They just need the correct bank account details and may choose to set up automatic recurring payments. You can talk with your bank to see which payments they accept but bear in mind that not all banks provide the same services. Thankfully, there are also many efficient rent collection apps that work in conjunction with your bank, which you can utilise such as Landordly, Rentr, and Landlord Vision.
You can also personally collect rents from tenants, especially if there are few of them. The best thing about in-person collections is that you will immediately have the money in your hands. Also, you get the chance to see your property, interact with tenants, and handle any routine maintenance. However, this method can be cumbersome and frustrating if you have several tenants. Also, never allow tenants to visit your house to deliver their rent to keep your personal life separate from business.
Collect Rent Online
Technology has simplified just about every aspect of real estate, including rent collection. Therefore, you can explore the convenient and straightforward option of collecting your rent online this year. There is no shortage of software you can use as a landlord to receive your rent payments. The price you will pay for these tools will vary based on the plan selected. Some software programs are very basic and provide only rent collection services. Others come with more features and services like tenant messaging, online rent rolls, and form uploads. Therefore, you can thoroughly research these tools to find the best one for collecting your rental income based on your specific needs.