Being a property manager involves a lot of diverse responsibilities. As such, using the right property management tools can go a long way to making your job easier and more efficient. A recent development in this regard is online rent payment. Many property managers have fully made the switch, realizing just how much easier it can make their lives. If you’re still on the fence, here are a number of reasons why you should make the change to online rent payments and how to get started.
Why You Should Switch to Online Rent Payment
Scheduling automatic payments
Every rental property manager will eventually have a negative experience with collecting rent. The biggest advantage of going online is the ability to set up automatic payments to minimize issues. Tenants can establish automated transfers to their property manager on a set date each month. Not only does this ease the process for tenants, but it adds a lot of security and consistency for the property manager. This alone makes online payments one of the best ways to collect rent.
Transparency
One of the biggest advantages of online rent payment is the transparency and easy availability of data. Traditional rent collection requires you to keep detailed paperwork and a hefty inventory of documents. By switching to online rent payment, you’ll have easy access to every record of your transactions and enjoy a streamlined view of your tenants’ payment history. You can easily find out which tenants have paid their rent, which ones have a history of late payments and any other information you may need. This can come in especially handy if ever there is a dispute with a tenant. Having an easily accessible online record of your transactions makes accountability much clearer, and figuring out where lapses have occurred becomes much simpler.
Fewer late payments
With an online rent payment system in place, most of your tenants will opt for automatic payments, due to its convenience. For those that opt to make their transfers manually, there’s still a much higher chance of them paying rent on time, due to reminder functions in most rent payment software. Across the board, rent payments are more likely to be made on time with an online rent payment system. Your property management clients will be ecstatic to see the numbers as a more consistent rental income starts rolling in.
Related: What to Do with a Tenant Not Paying Rent
Less headache
Gone will be the days of collecting cheques and standing in the bank’s queue! With online rent payment, you’ll be running an automated system that basically manages itself, often requiring very little intervention. So long as no payments are late, all of your rent collection duties as a property manager will be automated and taken care of. With fewer menial tasks on your plate, you’ll have the ability to focus on tasks that really matter and ones where your skills as a property manager can shine. Automation is the way to go in the property management industry!
Save paper!
Being environmentally conscious as a property manager will gain you the trust and respect of many tenants and clients. A study by J Turner Research shows that young renters are increasingly gravitating towards properties that advertise their green features. Many millennials are even willing to pay higher rent for eco-friendly rental properties, according to this same study. Although going paperless is only one small step in this direction, it will definitely be welcomed by many tenants as a step in the right direction! A property management business that takes these positive steps will be well-respected by tenants — and therefore by rental property owners.
Related: 4 Tips to Make a Rental Property Eco-Friendly
How to Implement Online Rent Payment
Research your options
Since the inception of this industry, sizeable competition has developed. There are now dozens of online rent payment services, and the savvy property manager needs to navigate through the clutter. Foremost, you should decide on your own priorities and what your aims are with the online rent payment solutions. You can then move on to searching for services that complete all of the functions you’re looking for. Some of the most recommended ones include Avail, TurboTenant, and Buildium. But there’s plenty more out there which you should be researching before committing to one. Consider looking through recommendations on top property management websites.
Related: 10 Best Property Management Websites for 2019
Give notice to your tenants
Your tenants should be informed several months ahead of time that this change will be occurring. This will allow your tenants enough time to fix any outstanding issues — such as clearing any issues they may have with their bank accounts — to ensure that things go smoothly. Be sure to emphasize how much easier this will make their monthly rent payments, and how this is an advantage to them, rather than a chore. By giving everyone the proper heads up, you’ll ensure there are no hurdles to be faced when you implement the new system.
Teach your tenants how to perform online rent payment
Although this will be a minor obstacle for most of your tenants, some may face difficulty in making the switch to digital transfers. This is especially true if some of your tenants are elderly, or have any sort of visual impairments. By taking an empathetic approach, and guiding them through a detailed step-by-step guide for making a rent payment online, you’ll ensure that everything will go smoothly when the switch is made. Again, be sure to emphasize just how much easier this will make things for your tenants, so they can appreciate the peace of mind it will bring about. Making sure your tenants are well-informed about how to set up rent payment online is to your definite advantage as a property manager.
Bottom Line
One of the best things you can do in 2020 is to accept rent payment online. With technology at your disposal, you can ensure better consistency and much less headache. All of this reflects well on your track record, meaning more clients may be lining up for your property management services. It’s no wonder so many managers collect rent online and an increasing number is making the switch for good!
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