Before the innovation of software systems, which help the property managers with an online rent collection, the property manager practically moves from one door to another to collect rent payments in cash from various tenants. The act of physical collection of rent payment was one of the things that made managing a real estate property difficult, and not too many property owners wanted to take on hands-on management.
Also, there were not too many credible property management companies to bank on. But in recent years, online rent payments have become increasingly popular over the last decade, and more and more property managers are adapting technology and scrapping the paper checks. Collecting rent online is more convenient, efficient, and cuts down on trips to the bank.
Read on to see four (4) benefits of using online rent payments in your rental property management that you might not have considered.
- Improved Customer Service
Giving your residents access to online payments typically means you are also giving them access to their account details, including current charges and previous payments. This transparency into their payment history will build trust between you and your resident and make payment disputes less likely. Both you and your resident will be able to see exactly how much they paid and the date that they made the payment on.
- More Secure Way To Transfer Payment
Online payments are more secure because they cut down on the risks that come with dealing with large amounts of cash. It eliminates the risk of their check being stolen or lost and having their banking information fall in the hands of the wrong person.
If you have a resident who is cautious about using online payments, you can assure them that their information will be safe. Using a strong password for your account is also a precaution they can take that can give them an extra level of security.
- Scheduled Payment Reminder
It is a cliché that most tenants make excuses for forgetfulness or occupied schedule when it comes to late rent payment. Yes, these software systems can be useful in making sure cases like this never come into play in the first place; this is where ‘a reminder’ option surfaces.
This reminder from the software alerts the tenants when the rent payment period is due. In this case, the tenant pays on time, and the landlords not only don’t need to physically remind the tenant of paying up but also get their money in time. This way, the tenant can boast a high credit score and an excellent reputation for living peacefully in residence.
- It Reduces Operating Expense and Increases Portfolio Value
According to an article by Innago, “most researchers estimate the transaction cost of a paper check at $3.00 per transaction. And some believe it to be as high as $10.00!”
In addition to the operating expense reduction, you can increase the value of your portfolio by reducing paper-based payments. To put it in perspective, if a 1,000 unit portfolio receives 500 paper checks and 250 money orders each month, they are spending $36,000+ annually to process those paper-based payments.
As highlighted in this article, it is evident that having your tenants make rent payments online does not only make them comfortable, but it also makes the management of the property a lot easier on the rent collection front. You should also note that some of your tenants may need to be convinced with this form of payment, that’s where you need to come in to make sure the system is adopted for convenience.