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5 Reasons Why You Need an Online Rent Payment System

Written by Posted On Tuesday, 10 December 2019 22:57

If you're a landlord or property manager, you should have an online rent payment system. Here are five reasons to set one up for your tenants today.

As a landlord or a property manager, one of your biggest responsibilities is to collect rent from your tenants.

Most people are happy to hand over their rent payment at the end of each month, but collecting it from difficult renters can make your job difficult.

So what can you do about it?

Set up an online rent payment system.

There are a lot of benefits to not having to collect rent in person or wait for a check to arrive in the mail.

If you’re ready to start collecting rent digitally, keep reading. Here are five essential reasons to set up online rent payments for your tenants.

1.Online Payments are Easier for Everyone

Online rent payments benefit both you and the tenant. By taking a few minutes to set it up, you can streamline the whole rent collection process.

It’s easier for landlords because it cuts down on one time-consuming task: going to the bank.

You won’t have to stand in line to deposit checks or waste time creating deposit slips.

You also won’t have to wait for tenants to mail it in or knock on doors in search of your payment.

It also easier for tenants, who often prefer to set up auto-payments rather than having to write checks. They’ll save a lot of time by not having to go to the post office for stamps or walk to the rental office every month.

56% of all bills are paid online, and rent might be the only thing your tenants are still currently writing checks for. Make it easier for them, and yourself, by setting up an online rental payment system now.

2.You Can Reduce Late Payments

With an online system in place, your tenants will also have the option to set up automatic debits. And when the rent automatically comes out of their account on the due date every month, you’ll get paid on time.

Even if they don’t set up recurring auto-debits, they will be able to log in when rent is due and authorize their payment in a matter of seconds. Online systems also send reminders that rent is due, so your tenants will always know when they need to pay.

There are a variety of different platforms that you can use to collect rent online. Some of the most popular options include Cozy, Avail, and Buildium.

These apps will email your tenants when rent is due, and notify you when you receive payment. Some even tack on automatic fees if the rent is late.

3.You’ll Have Less Paperwork

Collect your rent online, and you’ll receive monthly reports that show all of your earnings.

This offers an efficient way to track your receipts. You’ll have no need to write payments down in a ledger or enter them into an Excel spreadsheet every month.

An online statement that shows your yearly rental income also makes it easier to file your taxes.

If you have one or two rental units, keeping track of payments isn’t that hard to do. But if you have multiple units, online reporting can help your property manager keep better records.

You can view your reports at any time to see which tenants paid, who might be late, and who may need to be fined with late fees.

4. Online Payments Save You Time and Money

Collecting rent is just one of the many things you have to do as a landlord or a property manager.

And that’s just one more reason to set up an online rental payment system. It will save you time!

We already discussed how it can save you the time of having to drive to the bank and call tenants when rent is late.

But did you know it can save you money too?

The less time you have to spend collecting rent, the more time you’ll have to focus on other things around the property. And, as you know, time is money.

With that extra time, you can put your energy into making repairs, advertising empty units, and finding new tenants.

If you pay a property manager to collect rent for you, they’ll have that much more time to devote to other things.

5.You Can Build a Better Tenant/Landlord Relationship

Good tenants are hard to find. So when you find them, you must retain them for as long as possible. And that starts by having a good relationship with every person who rents from you.

Allowing online rent payments is a great way to build the landlord/tenant relationship. For them, it’s easier than writing and mailing you a check. For you, it’s better because you’ll never have to hear the dreaded “check is in the mail” excuse ever again.

With online payments, you can see exactly when each payment is made.

It’s also helpful because it allows you to establish a relationship that doesn’t revolve around the exchange of money. The more you can distance yourself from the rent collection process, the better your relationship will be.

Do you want to be known as the warden who comes around once a month looking for cash?

Or would you rather be known for being a great landlord who maintains a beautiful lawn and is quick to make repairs?

If you can be the latter, you'll have a better relationship right off the bat!

In Summary

Online rental payments are nothing new, yet there are still a lot of landlords who collect rent the old fashioned way.

Thinking about putting an online system in place for your tenants? Here’s why you should:

  • You’ll have an easier time collecting payments
  • You can reduce late payments with auto-pay and email reminders
  • You’ll get automated reports that reduce paperwork
  • You’ll save time and money
  • You’ll build a better tenant/landlord relationship

There are lots of methods available for online rent collection. If you’re looking for a new way to retain good tenants at your property, the time to start is now!

Bio:

Harper offers modern luxury apartments that are centrally located in Tempe, AZ. Learn more about their premium amenities and apartment availability by visiting their website.

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tracy handy

Tracy is a full-time real estate advisor and blogger. she specializing in real estate technology .and she would like to write real estate,  home improvement topics.

https://myrealestate.com/

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