Due to very fast Wi-Fi and mobile apps available these days, people can go online to pay their bills and schedule their appointments. Renters also use such technology to pay on time and manage their funds. Handling payments from wherever you are (with no annoying paper checks) is the new standard. So, property owners like you should consider accepting online rent payment. It is beneficial to both your business and renters – it saves time, reduces costs, improves cash flow and is more convenient. There are five major advantages your property management business could profit from in letting your residents pay their rent online. Let’s see:
Reasons for Collecting Rent Online
Controls management costs
Collecting rent online reduces property management expenses. This allows you to cut down on operation costs, and lets property management fees remain low, which is definitely an advantage for property owners.
Improves customer service
Instead of collecting and processing paper checks, your team can spend more time focusing on their marketing efforts and improving the relations with the residents.
Lessens past due accounts
Since there are different online payment options – such as PaypPal, eCheck and credit card – there will be a considerable reduction in late payments. In addition, mobile alerts that remind the residents that the rent is due, or when the due date is drawing near, usually prompts an immediate payment when your system is mobile device optimized.
Adds more security
Paying rent online gets rid of the risks involved with cash payments. Moreover, your insurance company is more likely to reduce your coverage when you do not maintain cash on-site.
Makes dispute resolutions easier and makes an audit track
Online rent payments generate a digital paper trail. If ever a resident claims that he/she paid online, you can check the system at once to confirm or refute the claim. With a fully incorporated property management software package, you can update owner statements, evaluate late fees and automatically trail split payments. The processing of rent payments and owner disbursements are more secure since sensitive personal info is never compromised. Your accounting group can just click to get a snapshot of those who have or have not paid to allow well-informed financial resolutions.
Expectations of Residents when it comes to Online Rent Payment Portals
According to past surveys, residents often expect a lot from online payment options. Besides being accessible 24/7, they expect them to:
- be user-friendly and simple to navigate;
- come with itemized monthly statements that separate additional fees from services;
- provide different payment options, such as credit and debit cards;
- allow automated recurring payments;
- not have any processing fees, particularly if residents are required to make online payments.
There are renters who still opt to pay their rent in the form of paper checks every first day of the month. However, in the last few years, it has been observed that more people are becoming comfortable with online transactions. In case you do not offer such options of paying rent online, perhaps it is about time to take it into consideration.