Tired of chasing down late payments from tenants?
Tired of tenants insisting they put a check in the mail last week that you still haven’t seen?
Tired of collecting cash for rent and then having it get lost or stolen before you make it to the bank?
It’s time to consider online rent collection.
In this article, we’re going to discuss the top four reasons you should utilize online rent collection: Automated records, fewer late payments, flexible payment options, and enforceable late fees.
1. Automated Records
Automated records make your life exponentially easier. Instead of having to manually track every transaction, create receipts, and decide where to physically store your books, you can keep everything online. Online rent collection methods automatically track and record every single transaction.
Furthermore, tools like free property management software allow you to pull detailed reports to glean insights regarding your business. You can make sound business decisions based on what you see in the reports.
Automated records take away any guesswork and settle disputes. They have timestamps, so tenants can’t argue about when they paid. These records make it simple to see patterns. You can quickly identify if someone is chronically late on payments. You can also see who is paying consistently on time. Automated records help you keep things simple by storing accurate payment histories.
2. Fewer Late Payments
Online rent collection helps tenants as much as it helps you. Automated reminders alert tenants to upcoming rent payments. They keep tenants accountable to pay on time and in the right amount.
Online rent collection also typically makes it possible for tenants to set up recurring payments, which means the chances of late payments drop drastically. It is less likely you will have to track down tenants, listen to excuses, and worry about whether or not they’ll pay. This is because automatic withdrawals take care of payment without tenants having to remember every single time.
Additionally, online rent collection lets tenants make payments from home. Thus, they don’t have to worry about mailing checks to you or figuring out a time you’re both available. Tenants can make payments when it’s convenient for them without either party going to the trouble of coordinating schedules.
3. Flexible Payment Options
Online rent collection isn’t limited to one specific payment option, which bodes well for you and your tenants. Most forms of online rent collection provide tenants with the ability to choose between paying via credit/debit card or through ACH payments, which connect directly to their bank accounts.
And offering multiple payment methods isn’t the only flexible aspect of collecting rent online. Collecting payments online makes for an easy, painless delivery of funds. Tenants can pay at whatever time works for them, so they don’t have to figure out how to meet up with you to drop off their payment at the first of the month. This saves everyone valuable time. It’s truly a win-win situation.
4. Enforceable Late Fees
It’s not fun when you have to be the bad guy. Tracking down late payments is a hassle no matter who you are. With online rent collection, it doesn’t have to cause the same level of stress. Most methods of online rent collection — excluding P2P platforms (which you should try to avoid anyway) — enable landlords to set up enforceable late fees.
Your selected collection method should enable you to edit the late fee amount or rate, as well as the grace period. With this in place, you’re able to automate enforceable late fees based on the terms outlined in your leases, but you don’t need to have unpleasant conversations with your tenants. Not only is this more efficient, but it also facilitates a better tenant-landlord relationship.
If you want to improve your business and save valuable time, online rent collection is a must. Hand-written checks and cash simply don’t offer the same benefits and protections.
Automated records, fewer late payments, flexible payment options, and enforceable late fees are four great reasons to adopt online rent collection. You make life better for your tenants and for you. It’s a no-brainer!