Let’s face it – physically collecting rental checks is outdated. It requires you to invest a lot of time into recording the payment into your tenant ledger, and standing in line at the bank to deposit it. This process doesn’t even include enforcing late fees, bounced check fees or any time spent talking to a tenant that doesn’t have the rent. Bring your rent collections into the future by switching to a convenient, easy, and hassle-free online solution in 2018.
While you might be accustomed to your current rent collection process, there are a few benefits to having an online option that manual procedures don’t have.
The five benefits to providing online rent payments are:
- Automatic Bank Transfers
Don’t dread the 1st of the month any longer. With an online rent collections solution, you won’t have to stand in that long line at the bank to deposit your rent checks. Your tenant’s rental payments will be automatically transferred into your bank account, allowing you to maintain rent collections during an emergency or that well-deserved long vacation.
- Tenant Notifications
If you have renters that are notoriously forgetful when it comes to paying the rent, then tenant notifications could be the solution for you. Many online rent collection services will send your tenants a text message and/or email reminder when a payment is coming up. Of course, once a payment is made, you’ll get a notification that the funds were received as well.
- Track Payments on Any Device
Manually inputting rental payments into a ledger (whether it’s a spreadsheet or physical ledger) is time consuming and tedious. Track your tenant’s rental payments online instead. This way you’ll be able to see payments that are pending, have been already made, and the total funds that you’ve received from your Dashboard. Each payment is timestamped, so you can easily determine if you need to charge late fees.
- Roommate Payments and AutoPay
Allowing your tenants to use multiple debit cards or checking accounts to pay the full rent balance will open up your door to new renter possibilities. Not only can it attract new applicants, but it can increase your relationships with your roommate-based households who will appreciate an easier way to split the rent (upping your chance of tenant retention). Roommate renters who are able to pay with their own bank account (versus frantically pooling the rental amount at the end of every month) are more likely to enable AutoPay - automatic monthly payments. Online rent collection features like these make it easier and more convenient for your renters to pay, and for you to get your rent.
- It’s Secure
The problem with physical rent checks is that they can very easily get lost or stolen. Someone could swipe your rent from your mailbox, office, or car. Far more likely, checks can get lost in the mail or somewhere on the way to the bank. With online rental payments, every payment undergoes bank-level encryption, eliminating the risk that your rent will get stolen. In addition to adhering to ACH security requirements, identity authentication is a common security practice among online rent collection services.
If your property management software doesn’t provide online rental payments already, getting an online rent collections service— like our partnership with Payrent.com – can fill this much needed void. While some form of physical rent collections will always exist in the multifamily housing industry, online rental collections are not only a more convenient solution for you and your tenants, but it keeps your property competitive within the market. With the time saved from switching online, you can better focus on marketing your other properties, maintaining the rental property, and other vital day-to-day tasks. Plus, who wants to go to the bank every month?
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