{"id":16031,"date":"2018-03-21T11:23:55","date_gmt":"2018-03-21T11:23:55","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=16031"},"modified":"2018-04-23T09:54:18","modified_gmt":"2018-04-23T09:54:18","slug":"a-guide-to-rent-collection","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/a-guide-to-rent-collection\/","title":{"rendered":"A Guide to Rent Collection"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n[vc_row][vc_column][vc_column_text]<span style=\"font-weight: 400;\"> Your rental income is pretty much the number 1 reason you became a <\/span><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/how-to-be-a-diy-landlord\/15789\/\"><span style=\"font-weight: 400;\">landlord<\/span><\/a><span style=\"font-weight: 400;\">. Why else would you let strangers live in a <\/span><a href=\"https:\/\/www.thehouseshop.com\/property-for-sale\"><span style=\"font-weight: 400;\">property you purchased<\/span><\/a><span style=\"font-weight: 400;\">? So collecting that rent should be rather high on your priority list. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have done the <\/span><a href=\"https:\/\/www.thehouseshop.com\/tenant-referencing\"><span style=\"font-weight: 400;\">relevant checks<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.thehouseshop.com\/landlords\"><span style=\"font-weight: 400;\">found a reliable tenant, <\/span><\/a><span style=\"font-weight: 400;\">who consistently pays their rent on time, then you have hit the rental jackpot. Your money will be in your account every month and your investment has been a success.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" class=\"aligncenter wp-image-16033\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/Snoopy-Happy-Dance.jpg\" alt=\"\" width=\"600\" height=\"546\" \/>However, if, for whatever reason, your tenant doesn\u2019t want to play ball, then you can find rent collection to be a difficult time and you may even find yourself out of pocket.<\/span><\/p>\n<p><img loading=\"lazy\" class=\"alignnone wp-image-15884 size-large\" title=\"Empty Pockets\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/empty-pcokets-600x381.jpg\" alt=\"Empty Pockets\" width=\"600\" height=\"381\" srcset=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/empty-pcokets-600x381.jpg 600w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/empty-pcokets-260x165.jpg 260w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/empty-pcokets-768x488.jpg 768w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/empty-pcokets-100x64.jpg 100w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/empty-pcokets-150x95.jpg 150w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/empty-pcokets-200x127.jpg 200w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/empty-pcokets-300x191.jpg 300w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/empty-pcokets-450x286.jpg 450w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/empty-pcokets.jpg 900w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Rent collection can be rather stressful, especially if your tenant is prone to making late or, on some occasions, no payments at all. So it\u2019s a good idea to organise your rent collection to make it as stress-free as possible. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This handy guide will help you to find the best form of rent collection that works for you. <\/span><\/p>\n<h2>1. Cheque<\/h2>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" class=\"alignnone wp-image-16034 size-full\" title=\"Write a Cheque\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/cheque.jpg\" alt=\"\" width=\"620\" height=\"388\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">I will place this in here tentatively, as cheques are becoming increasingly diminished and their extinction is imminent. However, for the time being, you can still collect rent via cheque. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">You must be aware that they will need to be either collected or posted. This means that there is likely to be a delay in actual payment, especially since the cheque will need so many business days to clear. Cheques can also bounce and then you will be left with no rental income for that month unless an alternative rent collection can be organised. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many people do not even have chequebooks anymore, as they are largely outdated. So you might be making it even more difficult for your tenant to <a href=\"https:\/\/www.thehouseshop.com\/rent-on-time\" title=\"pay their rent\">pay their rent<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If I were you I would just skip this one and move on to the next idea, but I will leave it here to give you the option\u2026<\/span><\/p>\n<p><a href=\"https:\/\/www.telegraph.co.uk\/finance\/personalfinance\/bank-accounts\/8719308\/Your-checklist-for-using-cheques.html\"><span style=\"font-weight: 400;\">Read this handy guide to give you a rundown of cheques and their availability&#8230;<\/span><\/a><\/p>\n<h2>2. Standing Order Vs Direct Debit<\/h2>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-16036\" title=\"Standing Order or Direct Debit Online\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/direct-debit-standing-order.jpg\" alt=\"\" width=\"600\" height=\"338\" \/><\/p>\n<p><span style=\"font-weight: 400;\">An automatic payment is a great way to just \u2018set it and forget it\u2019. Rent payments are automatically collected every month of a pre-specified day and transferred without fuss to the landlords&#8217; account. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The difference between a standing order (SO) and a direct debit (DD) is simply that with a SO the landlord cannot amend the price taken from the tenants each month. The tenant can be confident in the fact that their rental payments will be consistent in terms of <\/span><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/how-much-rent-should-i-charge-my-tenants\/14508\/\"><span style=\"font-weight: 400;\">\u2018how much\u2019. <\/span><\/a><span style=\"font-weight: 400;\">\u00a0A DD can be altered by the landlord and the tenant could find themselves paying more than expected each month. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">So a standing order is the preferred form of the rental collection as it keeps things simple and consistent throughout the whole process. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\">Find out more here:<\/span><\/i><\/p>\n<p><a href=\"https:\/\/www.landlordzone.co.uk\/information\/standing-order\"><i><span style=\"font-weight: 400;\">Standing Orders<\/span><\/i><\/a><\/p>\n<p><a href=\"https:\/\/www.londonandzurich.co.uk\/guides\/landlords-direct-debit-collection-guide\/\"><i><span style=\"font-weight: 400;\">A Direct Debit Collection Guide for Landlords<\/span><\/i><\/a><\/p>\n<p><a href=\"https:\/\/www.moneyadviceservice.org.uk\/en\/articles\/direct-debits-and-standing-orders\"><i><span style=\"font-weight: 400;\">Direct Debits and Standing Orders<\/span><\/i><\/a><\/p>\n<h2>3. Keeping Away from Cash<\/h2>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" class=\"alignnone wp-image-16037\" title=\"Cash is not accepted\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/no-cash.gif\" alt=\"\" width=\"600\" height=\"300\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although many landlords do deal in cash, it really isn\u2019t the safest way to handle rental payments. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">There is a looming possibility that the cash is fraudulent and fake. If this is the case, you won\u2019t know until the cash has been checked at the bank. By then your tenant could not have the funds to pay the extra and may not have even known the money was fake, to begin with. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are determined to deal with cash then make sure that the full amount is counted with the tenant present. Make sure that you provide receipts for both yourself and your tenants and that both receipts are signed by everyone involved. This ensures that everyone is in agreement and nothing can be disputed at a later date. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The biggest issue with cash payments is the lack of security and paper trail. There are too many potential issues which, when we are talking about large amounts of money, is possibly too big a risk to take. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">So unless you absolutely have to, I would recommend that you stay away from cash payments&#8230;.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\">Related Articles<\/span><\/i><\/p>\n<p><a href=\"https:\/\/www.theguardian.com\/money\/2013\/jul\/28\/key-facts-cash-landlord-property\"><i><span style=\"font-weight: 400;\">Key Facts to check out before handing over cash to a private landlord<\/span><\/i><\/a><\/p>\n<p><i><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.homesandproperty.co.uk\/property-news\/renting\/cashinhand-deals-can-cost-you-a-packet-36236.html\">Cash-in-hand deals can cost you a packet<\/a><\/span><\/i><\/p>\n<h2><b>4. Property Manager<\/b><\/h2>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" class=\"alignnone wp-image-16038\" title=\"Property Manager\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/proprety-management.png\" alt=\"\" width=\"600\" height=\"431\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">You could always hire a <\/span><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/pros-and-cons-of-property-management-companies\/15310\/\"><span style=\"font-weight: 400;\">property manager.<\/span><\/a><span style=\"font-weight: 400;\"> They take care of rental payments leaving you completely stress -free! However, they wouldn\u2019t just deal with rent collection, they would also deal with many other aspects of being a private landlord, including finding and <\/span><a href=\"https:\/\/www.thehouseshop.com\/tenant-referencing\"><span style=\"font-weight: 400;\">screening tenants<\/span><\/a><span style=\"font-weight: 400;\">, taking care of the property and the tenants, and dealing with the legal side of things, to name a few of their responsibilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is a rather costly form of rent collection, as you are likely to end up paying for additional services you may not have wanted or needed. It would be worth searching around for different <\/span><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/pros-and-cons-of-property-management-companies\/15310\/\"><span style=\"font-weight: 400;\">property management companies<\/span><\/a><span style=\"font-weight: 400;\"> and what they can offer you. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\">Find out more here:<\/span><\/i><\/p>\n<p><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/pros-and-cons-of-property-management-companies\/15310\/\"><i><span style=\"font-weight: 400;\">Why should I hire a property management company?<\/span><\/i><\/a><\/p>\n<p><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/what-are-property-management-fees-and-how-much-do-they-cost\/13398\/\"><i><span style=\"font-weight: 400;\">What are property management fees and how much do they cost?<\/span><\/i><\/a><\/p>\n<p><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/how-to-choose-a-property-management-company\/13378\/\"><i><span style=\"font-weight: 400;\">How to choose a property management company<\/span><\/i><\/a><\/p>\n<h2><strong>5. Rent Collection Scheme\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Rather than paying a large amount for someone to take over all of your responsibilities as a landlord, you could sign up to a rent collection scheme. There are loads of different varieties out there, so it is a good idea to do a bit of research and find out which one works for you.<\/span><\/p>\n<p><a href=\"https:\/\/www.thehouseshop.com\"><span style=\"font-weight: 400;\">TheHouseShop.com <\/span><\/a><span style=\"font-weight: 400;\">offers a super powered rent collection tool that acts as an incentive to tenants who are rewarded for their online payments with an <\/span><a href=\"https:\/\/www.experian.co.uk\/\"><span style=\"font-weight: 400;\">improved credit score<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<h2 style=\"text-align: center;\"><a href=\"https:\/\/www.thehouseshop.com\/rentscore\"><b>RentScore<\/b><\/a><\/h2>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.thehouseshop.com\/rentscore\"><img loading=\"lazy\" class=\"aligncenter wp-image-15821 size-large\" title=\"Rent Score\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1-600x331.jpg\" alt=\"\" width=\"600\" height=\"331\" srcset=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1-600x331.jpg 600w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1-260x143.jpg 260w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1-768x424.jpg 768w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1-100x55.jpg 100w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1-150x83.jpg 150w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1-200x110.jpg 200w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1-300x166.jpg 300w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1-450x248.jpg 450w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1-900x497.jpg 900w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/RentScore-Email@2x-1-1.jpg 1200w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a>For as little as \u00a314.99 a month, RentScore completely takes care of your rental income. They organise a direct debit with your tenants and your payments are processed on the same working day!\u00a0 Simple and fast! <\/span><\/p>\n<p><span style=\"font-weight: 400;\">RentScore makes <\/span><a href=\"https:\/\/nickmarr.com\/rentscore\/\"><span style=\"font-weight: 400;\">rent a number 1 priority for tenants<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">With the possibility that they can increase their credit score, Rent Score acts as a motivator, providing an incentive for tenants to consistently pay their rent on time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All payments are 100% safe and hassle-free, as RentScore takes all of the stress out of rent collection. All you have to do is fill out a simple form and then RentScore does the rest. Any late or missed payments are chased by them and you are notified every step of the way, keeping you in the loop without you having to do anything. <\/span><\/p>\n<p><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/rentscore-whats-in-it-for-me\/15958\/\"><span style=\"font-weight: 400;\">Find out all of the benefits of Rent Score here&#8230;<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">It is a win-win scenario where landlords can relax with the comforting knowledge that their rental payments are being taken care of, while tenants get the opportunity to increase their credit score and finally start a foundation for joining the property ladder.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" class=\"alignnone wp-image-16039\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/Hands-holding-piggy-bank-and-house-model-164113230_2119x1417.jpeg\" alt=\"\" width=\"600\" height=\"401\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">So there are plenty of ways you can ensure that your rental income is consistent. Although it may seem stressful at times there are schemes in place that can take away the stress and let you enjoy your profitable investment. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The biggest tip I can give you is to be consistent. Whatever you choose, stick to it. If you constantly change how your tenants pay their rent, then they are more likely to become confused and lost in the transitions, meaning that they could end up missing or making late payments, which is precisely what we are trying to avoid here.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having a solid method of rent collection in place is not only reassuring for yourself but also for your tenants, as they are confident that you are a professional private landlord who they can rely on. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\">Related Articles<\/span><\/i><\/p>\n<p><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/how-to-be-a-diy-landlord\/15789\/\"><i><span style=\"font-weight: 400;\">How to be a DIY Landlord<\/span><\/i><\/a><\/p>\n<p><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/what-is-rentscore\/15966\/\"><i><span style=\"font-weight: 400;\">What is RentScore?<\/span><\/i><\/a><\/p>\n<p><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/rentscore-whats-in-it-for-me\/15958\/\"><i><span style=\"font-weight: 400;\">RentScore, What\u2019s in it for me?<\/span><\/i><\/a><\/p>\n<p><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/how-much-rent-should-i-charge-my-tenants\/14508\/\"><i><span style=\"font-weight: 400;\">How much rent should I charge my tenants?<\/span><\/i><\/a><\/p>\n<p><a href=\"https:\/\/www.landlordtoday.co.uk\/breaking-news\/2018\/3\/new-rent-collection-service-aims-to-minimise-risk-of-late-or-missed-payments\"><i><span style=\"font-weight: 400;\">New rent collection service aims to \u2018minimise\u2019 risk of late or missed payments<\/span><\/i><\/a>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/2&#8243;][vc_tweetmeme type=&#8221;follow&#8221; follow_user=&#8221;@RentScoreUK&#8221; large_button=&#8221;true&#8221;][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_facebook][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text] Your rental income is pretty much the number 1 reason you became a landlord. Why else would you let strangers live in a property you purchased? So collecting that rent should be rather high on your priority list. If<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/a-guide-to-rent-collection\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":16042,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[1,10,16,9,646],"tags":[645,640,547,55,51,204,274,649,652,624,47,647,462],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/03\/rent-collection.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/a_guide_to_rent_collection","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/16031"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=16031"}],"version-history":[{"count":6,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/16031\/revisions"}],"predecessor-version":[{"id":16333,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/16031\/revisions\/16333"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/16042"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=16031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=16031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=16031"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=16031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}