Before the development of property software management tools that assist landlords with online rent collection, they would literally go door to door collecting cash payments from multiple tenants.
Online rent collection is one of the easiest methods for landlords for a variety of reasons. Other than saving time, renting online enables automatic payments, security deposit collection, and lease administration. In addition, tenants also benefit from the convenience of electronic rental payment collection.
One of the most common issues with real estate management is the failure to collect rent payments on time. Rent payments are an issue that can be even more problematic than getting in tenants with a criminal background or a troublesome past eviction. However, tenants may have reasons for not paying their rent on time or it could simply be forgetfulness.
5 Reasons Why You Should Choose Online Rent Payments
Every tenant is simply just another person with a busy schedule like most functional adults. Taking the kids to daycare, going to work, grocery shopping at lunchtime, and juggling meetings and extracurricular activities are examples of a typical day. With so much on their shoulders, rent payments may be the last thing on their minds, resulting in missed deadlines. Late payments are a frequent affair in rental businesses, but they can be avoided with the help of scheduled online payments. Implementing an online payment system will scale up your business and make communication easier for you and your tenants.
Here are five reasons why to choose online rent payment systems:
1. Collecting rental payments online makes life easier.
Rent collection via the mail or in person is indeed troublesome. One of the most significant benefits provided by online rent payments is that renters may pay their rent from anywhere they choose. Besides the standard payment option, which requires renters to go out and send a check to the landlord, putting themselves at risk while carrying large sums of money, online payment is safe, quick, stress-free, and very reliable. Additionally, online payment allows renters to avoid late payments, which benefits both the property management and the tenant.
2. Rent collecting online offers a wide variety of payment options.
Stripe (credit/debit cards) and Dwolla (ACH) are two of the online payment options at TenantCloud. The tenant's approach could be determined by which method the landlord prefers. Tenants will be able to pay their rent online on the due date, from anywhere.
Unlike the traditional method of payment, where renters go out and mail a check to the landlord, online payments are safe, quick, stress-free, and very reliable. Additionally, online payment allows renters to avoid late fees, which benefits both landlord and the tenant.
3. Payment Notification.
When it comes to late rent payments, most renters use reasons such as forgetfulness or a busy timetable. Online payments are a solution that can help ensure situations like these never arise in the first place. Payment notifications come into play.
Reminders are sent to the tenants when the rent payments are due. Tenants pay on time, and the landlords avoid personally reminding them to pay and receive their money in a timely fashion. On-time payments allow the renter to have a great credit score, and better reputation while promoting a good working relationship with the landlord/property manager during their tenancy.
4. Online Payments Are Safe.
One of the most crucial benefits of online rent collecting is its security. Tenants may pay their rent on time, knowing that checks will not be tampered with. There are also numerous laws and security procedures to protect against online fraud and data breaches.
Related: Secure Online Payments: Top Main Things You Should Know
5. Online Payments App Provide Various Features.
If you utilize full-featured rent payment software, you'll almost certainly have a lot more options.
Rental applications come with the following property management features:
- Automated rent payment plan.
- Calculate late fees automatically.
- Real-time rent payment information.
- Accept security deposits securely.
- Maintenance tracking feature.
- Set up rent payment reminders on a monthly basis.
- Background checks and tenant screening.
- Accept rental applications and electronically sign lease agreements.