3 Top Payment Methods for Running a Rental Business Abroad
If you bought property while living abroad for a few years for example and did not want to immediately sell up, you could test the water to see if any tenants may be keen to occupy it as you move back home. Furthermore, you may have purchased a holiday home and renting it out may be more advantageous than ultimately leaving it empty for months on end.
Of course, there are many things to consider once you do decide to establish a rental business, with a key one being just how you will receive rent. Here we have pulled together three different approaches you could take on the matter as you look to make a little bit of cash from your property interests.
1. Post-dated cheque
As AccountingCoach.com explains, a post-dated cheque is essentially a cheque which is written out and includes a date in the future on it. When it comes to paying rent, a tenant would agree with a landlord that the cheques in question would not be cashed or deposited until after the date which is stipulated.
The use of post-dated cheques is quite common in a number of areas across the world. For example, as this property website explains, it may be something people come across if they are looking for flats to rent in regions such as Sharjah. The practice of making rental payments through four to six post-dated cheques is used often in the area, which borders Dubai and has become a popular option due to its affordable rents when compared to the neighbouring city.
2. Online payment platforms
A more modern approach to the issue of rent payments may be to accept online methods such as PayPal or more specialist services. Payments through such services tend to be processed very quickly, while a major benefit is that their use is common across the world.
For example, as this website outlines, there are a host of online rent payment services available for landlords with property interests in the US. The likes of Cozy, Avail and PayYourRent include a range of features designed to ensure payments are received swiftly and easily.
3. Bank transfers from a local account
Alternatively, you could simply ask tenants to transfer rent from their bank account into one which you have established in the country or region where your property is based. The method is popular in many areas and, as this website explains, is commonly used to pay rent on property in Spain.
This may be a straightforward step to take as it would mean there could be the option of direct debits and standing orders too. However, that approach would, of course, mean you would need to manage and decide on how you access those funds, which would be held abroad.
Remove stress and concern
Renting out property can be a real money-spinner for those who are fortunate to have homes in a host of desirable and in-demand locations. Furthermore, having access to the right payments can help to take a lot of stress or concern out of managing or owning such properties.
The approaches listed above should hopefully give you some ideas on how you could address this issue as you get started with your own rental business.