At the end of the day, rent collection is the most important part of your business. It’s the bottom line of your lease agreements as well as the primary way you generate revenue. The smoother your collection process, the better off your business will be.
In an increasingly paperless, wireless world, online rent collection is the best way to manage this critical aspect of your business. By accepting debit, credit, and ACH transfers (direct transfers regulated by the Automated Clearing House), you can make your process attractive to renters while simplifying your own responsibilities.
Still unconvinced? Here are four major benefits of offering online rent collection:
1. Convenience and Efficiency
Whether you’re a full-time landlord or only lease a few properties each year, ease and speed are undoubtedly important to you. When you collect rent online, neither you or your tenants waste time making trips to the bank to deposit checks or withdraw cash. What’s more, manual records of these paper options are more vulnerable to human error or misplacement and contribute to overall clutter of your space.
When you switch to online collection, the property management software you select will generate clear, automated records each time a tenant makes a payment. Simply choose a software that works for you, and never waste time on manual accounting discrepancies or paper receipts again.
Your tenants will be glad too—they will appreciate the freedom to make payments from their device on their own time, whenever and wherever they want. Collecting rent online is the smartest way to streamline your business so that you can focus on tasks which benefit more from human attention, such as communicating with tenants and updating listings.
Many landlords worry about compromising the security of payments by moving online. However, many of these concerns are unfounded—the safest collection systems are those in which human hands are the least involved. With online rent collection, computers encrypt your information and eliminate the security vulnerabilities of cash and checks, safely transferring and storing your money away from watching eyes.
Worried about digital theft? Rest easy. While rare, any discrepancies that do occur are noticed and solved much quicker with property management software monitoring all payments. If there’s a problem, you’ll be the first to know.
The relationship between a landlord and their tenants is built on trust. Online rent collection can facilitate that trust by keeping you and your tenants accountable. Think of your property management software as a neutral party which automatically pushes rent reminders, late fees, and other messages you’d rather not send yourself.
When it comes down to the original agreements of the lease, both you and your tenants know that the computer is a reliable and fair enforcer. Not only will you be relieved from the responsibility of tracking down late payments and applying fees, but your tenants can also be held accountable without any uncomfortable conversations.
As a landlord, you want to build a responsible, ethical reputation for your business. This means recognizing your business’s environmental impact on the communities your properties are a part of. In a traditional rent collection model, you and your tenants are constantly consuming resources:
- Paper involved in cash and check transactions
- Any paper bills and receipts you print
- Gas required to drive to the bank or meet tenants every month
- Printed records kept by you or your accountant
Maybe you haven’t considered the long-term costs of these resources before, but you can bet your potential renters will. Younger tenants are more aware of the environmental impacts of business than past generations, and they are already accustomed to paying most bills online. Even college students are likely to have had an experience with making a regular, sustainable payment online, such as on Spotify or Hulu accounts.
An easy way to market your properties as modern and attract environmentally responsible renters is to make your rent collection (and other) services paperless.
Optimize Your Real Estate Priorities with Online Rent Collection
Rent is your number one priority and your tenants’ number one responsibility. You can make life easier for yourself and your renters with an online option that ensures rent runs as smoothly as possible. With property management software, it’s easy, safe, and responsible for everyone.