Are you looking to invest in a commercial property in Biloxi, Mississippi? While the state has faced financial problems for a decade, investors are flocking to help revitalize the economy.
This shouldn't frighten landlords, but you must be extra diligent when collecting your money. You want to make sure that you have an effective rent collection strategy, especially for commercial property.
This guide will share some of the best rent collection methods for you to consider to ensure consistent cash flow.
Here's what you should know:
Collecting Cash
One of the best ways to collect your rental fee is via cash. This is also the best way to filter reliable tenants. If tenants know that they must pay you in cash each month, you'll only attract those who have a steady income.
Even if you don't wish to be paid in cash at all times, it might be a good idea to collect your deposit and the first month's rent in cash.
You must ensure that you provide a signed receipt to your tenants if you collect in cash. Both landlords and tenants must retain identical copies of these receipts to avoid any discrepancies in accounting.
Digital Rent Collection Tools
The most efficient way to collect your rent is through various digital payment systems. These methods are best for maintaining receipts of payments. They're useful for when you fulfill your tax obligations.
The simplest way is to link your bank account to a payment app. These include Zelle, Venmo, CashApp, and Paypal, among many others. You can send a payment request via the app to your tenants.
They'll send the money, and it'll reach your account within seconds. Make sure you include a note within the app stating the purpose of the payment.
Another option is to create an invoice and send it to your tenants as a PDF. On the PDF, you can write your name and company details. You can also write the payment purpose for accounting purposes. You can then include your bank account details to request a wire transfer.
You can also use a payment processor such as Paypal or Stripe to collect payments via debit or credit card. This is one of the best options, as your tenants can pay you via credit card if they don't have the funds readily available.
However, you should also know that if this is the case, their cash flow might not be consistent. This could potentially lead to issues with them paying you in the future.
You should consider hiring a property management company to assist you with rent collection.
Start Your Rent Collection
Now you know the best methods to ensure prompt and regular rent collection for your commercial property.
Follow the steps in this guide, and you shouldn't have a problem building a successful rental business. You can always hire a property manager to help you.
PMI Biloxi is one of the leading property management companies in the city. We have amassed several positive testimonials over two decades, and we know we can help you as well!
