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Getting your monthly payments is the main reason to become a landlord. With the right setup, you can easily make a living off of renting out apartments or a house in Hawaii. However, how do you go about collecting that rent reliably?
It's important to determine in advance how you'll accept payment. You can have them send a check, make a payment online, or send the money directly to you through an app.
Here's everything you need to know about the various rent collection methods and how to collect rent without issue.
Security Deposit
The security deposit is a necessary part of renting out a property. It helps protect the landlord in the case of renter negligence that negatively affects the property.
In Hawaii, the security deposit should not exceed one month's rent. The tenant cannot use the deposit to cover their last month's rent unless agreed upon with their landlord. The tenant also must give a 45 days notice if they're vacating the premises and want to get their deposit back.
Collecting a Check vs Online Payment
Most landlords let tenants pay rent with a check. The advantage of using a check is that you can go to the bank right after you receive it to collect your money.
You can collect a check in person, but that requires your physical presence. If you own an apartment building, you can set up a dropbox for families to leave their payment for you to collect later.
Alternatively, a landlord can do online rent collection. You can set up a payment app like Venmo or Zelle, which allows individuals to send money to one another. These services often include extra fees, but it's much more convenient than getting a check or cash.
However, these online apps were made to work between family members and friends. As such, they may not come with built-in protection for the landlord or the tenant.
Using a Property Manager
Instead of deciding between the different types of rent collection, why not rely on a rent collection company to do the work for you?
A property management company works as the intermediary between a landlord and their tenant. They can help you avoid some of the common rental property accounting mistakes by managing your books and information.
The management company can also act as a rent collection company, which helps take some of the financial stress out of your hands. They'll also handle any issues, schedule maintenance, and deal with evictions.
Improve Your Rent Collection
Rent collection can be a struggle, especially if you're trying to manage multiple properties on your own. And that's on top of trying to care for these different tenants.
HomeRiver Group Honolulu offers property management services in Honolulu. We manage your property to help you turn a profit on your investment by finding qualified tenants and protecting your property.
Contact us to get your free rental analysis today and to review our fees.