Do you own a commercial property in Miami? You're surely patting yourself on the back now, as Miami is one of the most economically promising cities in the country.
In 2022, the city saw a poverty rate decrease of just above 4%, as well as a median household income growth of close to 15% in just one year. Without a doubt, this presents many opportunities for commercial property owners seeking to attract entrepreneurs and companies.
However, you'll need to ensure you maintain a consistent cash flow. This happens when you are steadfast with rent collection.
Here's what you can do:
Start With Cash
For your security deposit, you should collect the money in cash. This shows that your commercial tenants have some level of cash assets. You can also choose to take rent payments in cash. This filters out tenants who have regular cash flow from those who don't.
However, make sure that you always have a signed receipt for you and your tenants. This helps avoid any future disputes with your rental payments. In case of an IRS audit, you'll want to have these receipts available.
Best Options for Rent Collection
While cash is great, it's not always the best option for efficient rent collection. The best option is to streamline rent collection by receiving payments electronically.
You can provide your bank account details to your tenants. Send them an invoice each month with the exact amount to collect for rent. Provide them with a digital PDF receipt after payment. Usually, a confirmation document from your bank should be sufficient.
Another option is to create a payment link. You can use this using a service such as Wise or Stripe. Your tenant can save this link and send you the money at their convenience. They can pay using a bank transfer, debit card, credit card, or via their account balance.
You can also use a mobile payment app. These include Zelle, CashApp, Venmo, etc. You can send a request with a note stating that you're collecting the rental fee. Your tenant will use the same app to pay you. This is the fastest method as you'll receive your money within a few seconds.
Electronic rent collection helps you receive your money as fast as possible. You'll also receive a digital receipt that you can use for your accounting purposes. This prevents any discrepancies or disputes.
You can hire a property management company to help with rent collection. They'll collect the rental fee on your behalf and can transfer the money to your bank account.
Welcome to Magic City
Now you know how to ensure rent collection for your commercial properties in Miami.
Follow these methods, and you'll have no problem building a successful rental empire! You don't have to do everything on your own, as a property manager is just a phone call away!
PMI Biscayne Bay is one of Miami's leading property management companies. We're part of a franchise that has 20 years in the real estate industry helping commercial landlords throughout the city. We'd be glad to hop on a call with you.
