Are you a commercial property owner in Putnam, CT? It's a great town looking for economic growth, with lower income taxes and many opportunities for entrepreneurs.
However, if you want to build a steady business, you must be forthright with rent collection. You must ensure that you always receive your rent payments on time.
This quick guide will show you the best rent collection methods for your Putnam commercial properties. Follow these steps if you want to stand out as a commercial property landlord.
Here's what you should know:
Collect Rent In-Person
You may wish to collect your security deposit and first month's rent in-person. This lets you interact with your tenants beforehand.
It's the perfect way to get to know them and establish a business relationship with them. This is the best method for ensuring your tenant renews their lease.
Collecting rent in-person also proves that your tenant has financial stability. If they can hand over cash or a check, then it proves they don't have to pay via credit.
If you live close to your commercial property, this is also a convenient option. Make sure you provide your tenants with a written receipt if you choose this option.
Online Payments
The easiest method for rent collection is via online payments. You can send an invoice to your tenant which states the rental fee.
On the invoice, you can provide different methods for online payments. For example, you can write your bank account and routing number. Your tenant can make a wire transfer with this information.
To make online payments even easier, you can provide a payment link within the invoice. You can use services such as Stripe, Escrow, or Wise to create these payment links.
Your tenant can pay the rent using a credit or debit card via this link. You can also use services such as Zelle or Paypal to receive your payment directly.
Best Practices
Make sure you state your preferred rent collection methods in your rental agreement.
You should offer multiple payment methods to your tenants. This makes it easier for them to pay you and for you to collect rent.
You may prefer to receive payments in cash, for example. However, there might be one month when your tenant can't pay in cash upfront. If they can pay via credit card, you'll still receive your payment.
The easiest option is to charge your tenants on a monthly basis. You can also give them the choice to pay in advance - such as paying for two months' rent at a time.
It's Time for Rent Collection
Now you understand the best rent collection methods for your commercial property in Putnam, CT.
Receiving payments via cash is the best way to build a relationship with your tenants. They're convenient if you live near your property. You should also offer online payments as they're more convenient for tenants.
Of course, you can also outsource this responsibility to a property manager.
PMI Putnam is the best property manager for commercial real estate owners. We have over 20 years of experience and are more than happy to help you.
