June 08, 2017
The 90s Called, They Want Their Cheques Back
Think about your daily life. Grabbed a quick bite for lunch? You probably paid by bank or credit card. Had to pay some bills in the afternoon? No doubt you paid them online from your bank account (or the amounts were automatically withdrawn). Went to a concert in the evening? You might have gained entry using the bar code of a pre-purchased online e-ticket on your phone.
The odds are, at no point today did you pull out a chequebook.
So why-oh-why are tenants still paying by paper cheque?
Still the default method of rental payment, paper cheques are more prone to being lost or stolen, they ratchet up administration costs, and quite simply, they are a pain to process. And worse, they slow the flow of payment into the company coffers.
Break the Paper Habit
There are three main reasons that paper cheques still permeate the property industry, and what to do about them:
1. Tenants Feel They Have More Control. Sometimes older residents may feel a cheque is safer, or other renters feel more in control and will not issue a cheque until the money is in the bank.
Solution: Educate, educate, educate. Let your residents know that online payments are more secure, and they have total control to change their payment method, or date.
2. The Property Management Company/Landlord Only Accepts Cheques. This is a case of “we’ve always done it this way.” Old habits die hard, but everyone — from millennials to boomers — is now used to online banking and electronic payments.
Solution: Firms need to adopt alternative payment methods that their customers want. In the process, they’ll also improve efficiencies and cash flow.
Property management organizations and landlords who have moved to Property Vista’s online payment solution have eliminated the need for cheques. No more racing to the bank to make a manual deposit. No more fear of theft. No more added costs in terms of administration/labour costs, processing costs and other charges associated with paper cheques.
For residents, electronic payment means they can pay rent the way they already pay most bills: with speed, security and convenience. For property management companies and landlords, it means less work and lowered costs.
With everything to be gained and nothing to lose, what are you waiting for?
To learn more about how online rent payment can simplify processes and reduce late payments, sign up for your free account today or give us a call.