May 19, 2016
Top 7 Reasons to Switch to Online Rent Collection
The property management business hinges on timely rent collection. Why not do everything in your power to ensure that the process is as efficient and seamless as possible?
Today’s technology makes it possible to offer renters a multitude of online payment options, all while reducing your paperwork and administrative expenses, saving time, improving cash flow consistency and even minimizing your firm’s environmental impact.
The time has come to make the move to online rent collection. Consider what you have to gain:
1. Improved Customer Service
Modern renters rely on technology to make payments. Research shows that more than half of consumers pay at least one monthly bill via online banking, and nearly all verify account balances and recent transactions online. Digital rent payment options provide the convenience today’s tenants are looking for. They also reduce the time you spend collecting rent, so you can devote more hours to outreach with new prospects and developing stronger relationships with current renters.
2. Higher Security
With online rent collection, you can skip the hassle and worry of fraudulent cheques. You’ll also lower the risks associated with cash payment; because the money goes straight to the property’s account, you won’t have to store cash onsite, which will likely result in a lower property insurance rate.
3. Reduced Costs
The cost of one cheque might not seem like a lot. But think about it. All the associated expenses of such a small piece of paper are significant. There are bank fees, charges on bounced cheques and administrative costs in the form of labour and resources required to process the paper-based cheques. Independent studies have pegged cost can run between $15 to $25.
4. Greater Efficiency
Moving to online payment greatly improves operational efficiency. Gone are the days of manual tracking processes, trips to the bank to deposit cheques, and hours spent sifting through records to determine which tenants are behind on payment.
5. Improved Cash Flow
Many overdue payments are the result of forgetfulness, not bad intentions. Online payment systems enable you to set up automatic reminders of upcoming or overdue payments. With several electronic payment options available (such as e-transfer, credit card or PayPal), reminders will often result in immediate payment if your system can accommodate mobile devices. For repeat offenders who may be deliberately delaying rent payment, you can easily flag and track their activity, so you can take preventative action to ensure your cash flow stays steady.
6. Better Management Fee Control
Switching to online rent collection can reduce your administrative staff requirement by half. Lower overhead costs for property management teams frees up resources you can use to develop or promote the property itself.
7. Transparent Audit Trail
With a digital record of every rent transaction, you’ll have an instant snapshot of who has or hasn’t paid. So you can quickly resolve tenant disputes by verifying or disproving their claims, down to the date and time a payment was transferred to your account.
The keystrokes are on the screen, and the message is clear: It’s time to embrace online rent collection. Your renters, and your bottom line, will thank you.
To discover how Property Vista can help you implement online payment options to improve customer service while saving time and money, sign up for your free account today.