It may seem like paper checks are the gold standard for rent collection, but there’s a new wave of innovation that will make your rent collection process ten times easier. When collecting rent online, so many worries that come with collecting rent via money order, cash, or paper checks are no longer relevant. Below are the top three reasons why you should make the switch.
Paper checks and money order rent responsibilities can be a serious burden on your day-to-day schedule. Not only do you have to be holed up in your office all day waiting for your tenants to come by and hand off their payment, but there will often be times where you must make special accommodations for tenants with a busy schedule or with a disability that doesn’t allow them to drop off rent in the traditional manner. Juggling all this can be strenuous.
When you collect rent online, you can be anywhere on the first of the month and not have to worry about letting your tenants know where you will be. Your tenants will submit their debit, credit or ACH rental payments through the payment processor of your choice.
Another great aspect of collecting rent online is that it gives you and your renters the flexibility to pay wherever and however you’d like. Not only can you collect rent payments from Cousin Vinny’s pool on a nice summer day, but your tenants also have the ability to pay in the payment method they choose. Most rent collection methods accommodate credit/debit cards and ACH payments, which is when money is transferred directly from one bank account to the next.
Stay weary of P2P (peer-to-peer) payment platforms like Venmo, PayPal, and Zelle. These apps may seem familiar and user-friendly, but their terms of service are strict when it comes to real estate transactions and can cause you a big headache down the line if you’re caught collecting rent via th
A large part of being a good landlord is keeping track of all the transactions you process. When collecting paper checks, this probably looked like an Excel spreadsheet or good ol’ pen and paper records. While these bookkeeping methods are better than not keeping records at all, there is a much easier way to keep track of your payment history when you opt for using property management software.
Most software partners will automatically record each transaction without any direct action from you. Not only that, but you can also receive data regarding exactly which tenant paid, how much the payment was for, and exactly what that amount covered. For example, if Rebecca in Unit F paid her rent payment late this month, you can see the full amount as well as the breakdown of what it covered (her rent payment plus her late rent fee).
Such detailed records will help you settle any disputes that may arise between you and your tenants. If Rebecca claims that she didn’t deserve a late fee since she did, in fact, pay rent on time, you can go back in your digital ledger and see the exact day and time she paid and decide whether her claim is valid. Also, if you ever have to evict a tenant, you most likely will have to provide a detailed account of nonpayment from this former tenant to prove that you were within your rights to evict them.
Don’t fret! Late payments can be a thing of the past with online rent collection via property management software. Through the software, your tenants will be able to set up automatic payments from the payment method of their choice. That way, without having to remember to pay, your tenants will get their rent payment to you on time and in the correct amount.
However, if you do end up having to charge a late fee, most property management software platforms will automatically enforce your late fee policy without you having to do so manually. After only a few minutes of set-up on your part in which you decide the grace period and amount of the fee, you can sleep tight knowing that you aren’t missing any late payers.
Paper checks are, like, so over. Jump into the modern age with online rent collection and retire your weary pencil sharpener and paper records. Collecting rent online is much easier for you and your tenants if you choose to collect with property management software. Most options come with a large customer support team that will help you make the switch, and once you do, you’ll wish you had done it sooner.