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Payment Options for Landlord Rental Collection Derby

Payment Options for Landlord Rental Collection Derby

Collecting rent is one of the main priorities for a landlord. With an estimated £90 million in rent every year, landlords that fail to think more about rent collection could lose out more than they realise. However, even with a firm focus on the collection of rent, there are still decisions to make in terms of the best way to collect the rent that you are owed. Renting in the private sector means being able to ensure that you can collect your rent in the ways that are most convenient to both you and your tenants. Here are some of the most popular payment options to consider.

1. Cash

Although this is a rarity when it comes to property, it still happens. It can be a tenant red flag, so if you do have a tenant that will only pay in cash, then this can be a sign that there are potential issues. It can also mean a lot of manual work if you have to physically visit your property (worse if you have multiple properties). Taking cash payments will mean that you will have to be even more diligent when it comes to your paper trail, or you could get some bad news from the taxman at the end of the year.

2. Cheques

Although outdated in these days of digital, there are still people that prefer to make their rent payments with a chequebook. Like accepting cash, there are some fundamental issues with accepting cheques. One of the most consistent is blaming the postal service for not delivering a posted cheque payment, and there is often no way of knowing if this is a legitimate mishap or not. You will also need to deposit your cheques manually, adding to your possible workload, as well as the major issue of factoring in the waiting time for the cheque to clear.

3. Standing Orders

One of the more convenient payment options, standing orders are an automated and secure way to receive your rent. It’s not just landlords who prefer standing order rent payments. Tenants like them for many of the same reasons, but there is also the fact that they will not get hit by unexpected rent increases without warning. However, although standing orders are convenient, they do mean that you lose some control because it is the tenant that sets up the payments. If they change the payment date (or even the amount), or if there is an issue with the bank itself, then you may start missing out on regular payments and the right rental price.