Managing rentals is definitely a profitable business, as long as you manage your cash flow accurately and collect rent on time. There is a statement in the lease that says that tenants agree to pay rent each month in exchange for living in the property. And as the owner of the rental property, you decide how your property will be run. You have to choose the option that best suits your needs, like post dated cheques, e-mail or bank transfers, drop-off location, in-person meetings or online payments, which seems to be very convenient. Why online seems to be the best option? Well, let's talk about it further.
When starting to search information about rental payments, I asked three of my acquaintances, (two landlords and one tenant) about their experience, and all three told me that collecting physical rent checks is a royal pain. Too much romping as late payments, bounced checks, offline collecting and cashing the checks. If renters are late, it's also problematic to assess and collect late payments.
If you have, for example, 10 units, you probably don’t want to personally knock on each door to collect rent on the first of every month. Anyway, firstly I wanted to write about pros and cons, but after I’ve done a research, I understood there are no disadvantages (online payments have no cons). So here what I can tell you:
Paying online is really great, because your tenants can set up such option as recurring payments. This will be a guarantee that they will not miss a due date. A reminder is never too much, I suppose. Also, you are able to send your tenants “money request” each month or you can make it automated as well.
There are many great tools for online rent collection. And some of them, like TenantCloud, for example, let you to collect security deposits, homeowner’s association dues and many other fees. You can also set a real-time notification when a rent payment is received.
It’s right the time to think about our planet and become paperless. You don’t have to collect and process paper checks, neither you have to deal with money orders every month. Moreover, paying online saves you time. You don’t have to waste endless time checking your mailbox. Its the 21st century and it’s time to make your life easier. Leave your mailbox for vintage postcards, use online tools for payments.
Sometimes you need the information which is stored in your office, but you are away and your tenant need it right now. Huh, no worries. Tools for online payments keep all the data and payment history in the cloud, within your personal cabinet. That’s how the necessary information is always accessible for you, wherever you are.
Be sure your tenants pay on time and keep tracking whether everything works right. Stay informed throughout the whole process about all operations and moves. Choose tracking options and set your own reminders to stay up to date with all your rentals.
As you can see, online rent collection only has advantages. It saves you time, effort and gives you much more valuable options (see the find additional options point). Besides, it also makes life easier for your tenants and you both live and cooperate side by side happily.
Still, if you have doubts or have the cons of collecting rent online, I’ll be grateful if you share them in comments. And for now, suggest you to try online rent collection and make your life simpler.