February 27, 2018
The Five Major Benefits of Collecting Rent Online
Writing out a check for the monthly rent has been a tradition in the property management industry. It seems that landlords have been accepting, processing and chasing after checks since the Jurassic era. Property management has lagged behind in adapting online payment processes. But the time has come move away from outdated methods. But, there are a ton of advantages to going digital and collecting rent online.
Here are just five major benefits of collecting rent online:
1. It saves you money. When you factor in administrative and clerical fees, processing each check can cost between $13 and $19. When you start doing the math on that, multiplying the number of check-paying renters by 12 months of rent, and the costs add up quite quickly. Eliminate those costs, and there’s a direct impact on your bottom line. Additionally, you improve cash flow with a better “speed to bank” time with direct deposits that come out on the first of the month.
2. It saves you time. Because there’s no more chasing checks, or manual entries and deposits, collecting rent online is more efficient and effective than paper-based options. Better yet, if a resident wants to change their payment method, they can do it themselves online through a self-serve portal. Online rent collection solutions allow property managers to spend less time pushing paper and more time improving the property itself.
3. It reduces fraud and risk. With any check, you run the risk of incurring NSF charges or check fraud. Because landlords and property management firms deal with checks more than many modern businesses, the risk of fraud is exponentially increased.
4. Your tenants want to pay online. From credit card payments to routine bills, we all make payments online, and often through our mobile device. Many renters under the age of 40 find it inconceivable that their landlord would only accept payment by check. So, when you have an online rent solution, you’re giving your renters the convenience they are looking for.
5. Online payment is transparent. Because all payment history is digitalized, centralized, and available 24/7, both the property manager and the renter has clear view into their account standing. Digital payments improve transparency, offering residents real-time payment information, automated receipts, SMS payment reminders and more.
For businesses and organizations across America, checks are quickly becoming a thing of the past. Switching over to collecting rent online delivers a more secure, reliable and efficient way to collect rent payments.
To learn how our cloud-based software solutions can help you manage your property more effectively, visit PropertyVista.com and click “Get Started.”