Rent collection is important for obvious reasons. Most states have different rules and requirements for what constitutes a valid lease and Landlords usually charge Tenants on a monthly basis. Landlords will charge rent based on the terms of the Lease Agreement and Tenants must remit the monthly payment as a condition of residing on the property.
Before a Landlord can begin collecting rent, a Landlord should have a written lease agreement signed by the Landlord and the prospective Tenant. Having this document written out can save future headaches and puts down expectations on both sides. Different states and locales may have different requirements around what constitutes a valid lease but here are some of main parts:
One major callout, real estate is protected under many discrimination statutes. Please make sure your lease and rent collection methodology complies with Fair Housing Act requirements -- not just because it is good for business, it is also the right thing to do.
Tenants will often need to pay for a couple things:
Based on the stipulations provided in the Lease Agreement, a Landlord will want to specify details about the rent payment. Landlords can typically require a Tenant to use a certain system (eg. Venmo, Check, Cash App) to pay rent and Landlords can specify how much the late fee would be.
Some easy options, for DIY landlords, to collect rent include:
However, most of these services require some amount work to set up and requires good accounting and record-keeping so potential auditors can figure out which property or unit the rent is for. To fully automate this work, Landlords will be able to use Nophin.
This means Nophin will front-load all the money you're expected to earn (ie. your Free Cash Flow) over the course of the year and adjust a slight discount based on the risk and service. We look at your rental property performance and determine what you can afford based on your leases and financial history.
Our goal is to provide liquidity to landlords -- so you can go ahead and treat yourself, reinvest in your business, or use the money to address any life events that come your way.