How can I secure my payment with remote work client?

The only way to guarantee payment is to be paid IN ADVANCE. I'm currently awaiting payment from a client for whom I performed work remotely; we had a contract, but I'm getting one excuse after another re. actually getting paid despite how pleased he was about the work I did. I got burned by a different client last year; I had a contract w/ him, too (I ended up opening a collections case against him).

The lesson for me (and you) is get paid in advance. This is standard procedure when doing search engine marketing (SEM) / paid-per-click (PPC) work, and I think we need to apply it for other types of work as well.

Good luck!

In order to secure my payment term, I am thinking of creating a contract which will be renewed monthly. Is the contract sufficient or do I need to get some other proof before starting my work with the client?

A contract is a legal document. You should never perform any work without having a contract signed by all parties.

A contract doesn't guarantee that a client will pay you, but it gives you legal recourse if they don't.

Can I take legal actions if my payments is not made?

Yes, you can. Again, there's no guarantee that you'll receive payment or win a legal judgment against a client, but you certainly can take legal action.

Additionally, if you don't have it already, make sure that you have Professional Liability Insurance and General Liability Insurance, or their equivalents. These provide you financial protection should a client sue you.

This is the part of freelancing that always makes me question my life choices. lol.

Past experience has taught me to always write up a contract. I don't do any work until the contract is signed and I receive 1/2 the amount I'm charging for the work. They don't receive the finished product (or it doesn't go live) until I've been paid in full. But my work tends to be a by-the-project basis with an additional hourly charge for additional work done.

If you're doing hourly work only, I'd outline the payment terms in the contract, and send them monthly invoices. If they fall behind in payments stop working until the pay you.

There's really no way to guarantee you'll be paid, but writing out a contract and sending out invoices does help. There are a ton of free resources out there to help you with freelance paperwork. One of my favorites is https://www.freelancersunion.org/

hope this helps!