4 Reasons You Should Be Using Online Rent Collection
3 min read
Are you still dealing with cash and check rent payments? Maybe you assume that’s the only option or are wary of alternate methods because they’re new to you. To eliminate any concerns you may have, below are four reasons you should collect rent online and the numerous ways in which doing so is easier and more efficient for both you and your tenants.
#1: There are Many Ways to Pay
Have you ever had tenants come to you with requests for alternate ways to pay their rent? When you don’t collect rent online, accepting these requests can be difficult, since you have to figure out the avenues for doing so on your own. When you invest in property management software and allow your tenants to pay online, that headache is resolved for you.
Tenants can submit an ACH rent payment through your online rent collection platform. This type of payment is a transaction between two accounts. The funds are directly taken from one person’s account and deposited into the other person’s quickly and efficiently. And, the best part is that this transfer can happen without any action from you. All you have to do is enter your account and routing numbers, and when your tenant does the same, the funds can be moved by the software you’ve chosen via a secure network. Also, since the hard part is taken care of by your property management software partner, your tenants don’t have access to your banking information, and you can’t see theirs. Both parties can feel reassured that their information is kept safe.
Alternatively, tenants can use their credit or debit cards to pay rent. By simply entering their card’s number, they can see their funds taken from that card and credited towards their rent payment. This is convenient because your tenants may want to have their rent payments count towards their credit score or get certain benefits from their credit card company for doing so.
#2: Upgraded Bookkeeping
Although it can be tough to hear, computers really are more precise than humans sometimes. Especially when it comes to tedious, repeated tasks like slaving over an Excel spreadsheet to see who has yet to pay rent, using an automated software that keeps an automatic, digital ledger without you ever even lifting a finger is the obvious choice.
Also, if you find yourself being challenged in court by a tenant, you have records that you know for sure are completely accurate. If you take your own records with a pen and paper or by manually typing numbers into a spreadsheet, there are always chances for error. By letting yourself sit back and watch the computer do it for you, you can rest assured that the evidence you have is accurate and very effective at combating false claims.
#3: Automatic Payments
One of the best benefits of collecting rent online is that your tenants can sign up for recurring, automatic rent payments via your property management software. Sometimes life happens and tenants forget to pay their rent. Although it may be an honest mistake, it can be a burden for both you and the tenant. Not only do you get your payment later than you wanted, but they got charged a late fee and now owe even more than before.
Accidental late payments can be significantly reduced using automatic payments. By signing up and opting -in, tenants don’t have to remember to pay and instead can have their funds automatically deducted from the card or bank account of their choice.
#4: Flexibility
Gone are the days of getting a backache from slouching at your desk all day, waiting for tenants to enter your office with their rent payment in hand. When you collect rent online, you can watch your money roll in from the comfort of your home, or while on vacation via your smartphone or computer.
Also, your tenants are less likely to pay rent past the due date when they also have added flexibility with online payments. They can pay rent from anywhere, as long as they have a secure connection.
Conclusion
Collect online free with the property management software of your choice. While there are comprehensive, paid options available as well, companies like Innago offer all the benefits listed above while letting you use their services for free.
Do yourself and your tenants a favor and make the shift to online payments today.
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