Author Archives: rentapplication
Author Archives: rentapplication
Decided to make the switch from checks to online rent payment? By the end of this guide you should be able to:
One of the biggest pains in being a Landlord is collecting the rent. Whether “The check is in the mail” or consistently late tenants, what makes owning rental property so rewarding (the money), can often be the most difficult part of ongoing property management. That’s probably why it’s one of the most important parts of the job.
Over the past few years, more and more companies have entered the online rental payment space, targeting different markets and users. They use different technologies and different options, but the desired end result is the same: fast, effortless rent collection.Start Accepting Rent Online
In a word, yes. Having your tenants set up to pay online every month, is one of the best things to happen to Landlords and Property Managers. Keep in mind that most people (especially millennials), don’t even use checks anymore. So not only do they have to write you a check, they have to remember how to use a check in the first place!Start Accepting Rent Online
When you switch from receiving checks to processing direct deposits, you make life a lot easier for both yourself and your tenant:
There are a few different methods that you can use to get paid online. Each has their own pluses and minuses, and we’ll discuss them here:
ACH stands for automated clearing house, and is what the banks use to handle transferring money to each other. If you’ve ever used direct deposit as an employer or employee, it’s basically the same system.
The primary benefits of ACH include:
This is the cheapest system to use, and is also the most secure. It’s also the one that powers our online system, which you can sign up for here.Start Accepting Rent Online
In theory, accepting credit cards seems like a good idea. Almost everyone has one, everyone knows how to use it, and you don’t have to worry if your tenant can’t afford the bill later on.
There are two main problems with credit cards for Landlords, which makes accepting them a bit of a risk, as well as expensive:
If you work with a lot of low income tenants, offering the option of credit cards can allow a third party (a well to do relative or friend) to pay the occasional payment on time. Additionally, if your tenants don’t have bank accounts, they may prefer to use prepaid bank cards that they can buy at places like CVS, Wallgreens or Krogers.Start Accepting Rent Online
Paypal has been around since the beginning, and is a well trusted name in the payment space. That being said, it’s important to understand the risks involved with taking any kind of money from paypal:
Demand drafts are these little known method for accepting checks. Mostly used by telemarketers, the idea works like this: You receive permission from your tenant each month to print a check in their name, with their account information. It doesn’t need to be signed. There is special software that does this for you. Then, you take this to the bank and deposit it like a regular check.Start Accepting Rent Online
Services like PayNearMe let’s the so-called “underbanked” (people who don’t have bank accounts, typically lower income), pay rent in cash at places like 7-11.
Yes, our service is 100% safe and uses the same level of encryption and security that banks use, as well as companies like Amazon.com.
It currently costs $1.99 for each rental payment you accept.
Simple, click here to get started.Start Accepting Rent Online
RentApplication.com is the only service that allows you to easily find tenants, screen them and collect rent, automatically. Collect Rent and never have to worry about prorating again. We're offering a free trial, which includes free tenant lookups, a free rental website, and more. Try it todsy!
One of the questions that we see asked a ton is “How Do I Calculate the Prorated Rent on My Unit”?
Before we answer that question, let’s answer an important question:
Prorated rent is how much you, the landlord, charge a tenant when the tenant is occupies the rental for a unit less that specific on the lease.
The most common example is a tenant who starts a monthly or yearly lease in the middle of the month. Normally, you charge them for a whole month, but they won’t be living in the unit for a whole month at some point of the term. Since your daily rental rate is often significantly higher then your monthly rate, you need to prorate the apartment rental.
Simple – it’s the honest, fair thing to do. It’s the best method for when tenants want to move in for odd lease durations, or need to get a 4.5 month lease or something similar.
There are two popular methods to prorate rent:
1. Number of Days in the Year
While popular in certain segments of the rental industry, it can be confusing to tenants. It’s technically the most accurate for a yearly lease, but can sometimes cause confusion and short change tenants during months with shorter days.
Here’s the formula to prorate yearly:
((Months Rent * 12) / Days in The Year)) * The Number of Days The Tenant Needs to Pay
If we took an example of August 18th Moving in Day, and a monthly rent of $1000, the equation ends up being:
((1000 * 12/ 365)) * 14 = $460.27
2. Prorate by the Number of Days in the Month
This method is simpler, easier to calculate, and ultimately ends up being fairer to tenants.
((Month's Rent) / Days in the Month)) * The Number of Days The Tenant Needs to Pay
Using our example again from above of August 18th with a $1000/m rental:
((1000 / 31)) * 14 = $451.61
Notice how the monthly prorated came out to slightly less then the yearly prorated? The yearly prorated will be more on months with 31 days.
The nice thing about the monthly pro-ration is it works extremely well for those who often rent month to month. And since your rents can be all over the place depending on demand, it makes sense to prorate based on the actual month the tenant is renting.
Additionally, it’s dead simple. Your tenants will get it and you shouldn’t have that many problems or pushback from them.
Local Laws and Prorating
As always, check with your local government about specifics related to prorating the rent. In Los Angeles, for example, the courts have decided that a rental month is always 30 days for evictions, so use that for your prorating.
Summing Up About Prorating and Rental/Lease Agreements
Whatever method you decide to use to prorate, be consistent. Specify how you’re prorating in your lease, when you take the prorated rent (some Landlords will prorate a longer term lease on the second month to smooth out income and make sure you can pay the rent), and what method you’ve decided to use to prorate the rent. Once you’ve done that, stick to it!
At the end of the day, prorating is not a difficult concept.
Post in the comments if you have questions or opinions on how to prorate!
Ask any former Landlord what their biggest issue was, and you’ll always get the same answer: “The Tenants”.
Your tenants are both your greatest benefit (they pay the rent, after all), as well as your biggest annoyance. No one else is going to call you at 3AM because of a leaky Air Conditioning unit, or try and sneak their 200 lbs rottweiler into the building.
Some of us became landlords accidentally, while others entered this business to quit their 9 to 5. Regardless of how, or why, you’re a landlord, the rules for success are the same. And love ’em or hate ’em, a lot of your success is going to focus on how you deal with tenants.
What are your best ways to improve your rental business? Share in the comments below and on facebook!
AirBNB is always in the news. There’s constant debate about its affect on rental supply and market rents. This infographic shows you the true cost of AirBNB.
<a href="https://www.rentapplication.com/whats-the-real-cost-of-airbnb/"> <img src="https://d11crtb5sd24b1.cloudfront.net/wp-content/uploads/2015/06/AirBnb_infographic.jpg" alt="AirBNB affect on rental apartments"></a> <a href="https://www.rentapplication.com/whats-the-real-cost-of-airbnb/">How AirBNB causes a rise in rental pricing</a>, courtest of <a href="https://www.rentapplication.com">RentApplication.com</a>
New York State, like many states, allows you to search for a sex offender.
The Empire State only lets you map individual sex offenders. You can’t plot a map of all of the sex offenders currently registered around your block or your neighborhood. For example, if you live on the Lower East Side, you can’t see all the offenders near you.
In an effort to make this data more accessible, we’ve (literally) put every sex offender in New York City on the map. Just click on each point to view pictures, name, offense, and a link to the full rap sheet provided by NYS Criminal Justices.
Want to share this map on your blog? Here’s the code:
<iframe src="https://rentapplication.cartodb.com/viz/ce303a7a-0f6f-11e5-a761-0e0c41326911/embed_map" width="100%" height="520" frameborder="0" allowfullscreen="allowfullscreen"></iframe> This Map was built and produced by <a href="https://www.rentapplication.com">RentApplication.com</a>.You may redistribute as long as this link remains intact.