What’s the single biggest reason for becoming a landlord? Collecting rent every month. It’s the oil that keeps the engine healthy and running. It is crucial for independent landlords to help with paying monthly mortgages. It is also a surprisingly overlooked topic due to the sensitivity and awkwardness surrounding money-oriented conversations. However, establishing the “how?” is almost as important as finalizing the “how much?”
Studies have revealed that landlords have faced more payment problems, than problems with criminal or eviction history. A problem with collecting rent isn’t just a minor annoyance; one late payment can put your entire rental income at risk. A recent survey by CitiGroup showed that more than half of America has paid a bill late. Why? In most cases, they just forgot. Don’t realize the hard way that repeated phone calls and emails to chase down those payments can just cause friction in your landlord-tenant relationships, and make other necessary communications for repairs, etc, more difficult. Consider switching to online rent collection. Less words, more action.
Benefits of Online Rent Collection
No more late payments
It’s not a classy move to keep chasing after your tenants for rent. Your time is far more valuable than that. Choose a system that would send automatic payment reminders to your tenants - so you don’t have to. Once you schedule your payment requests and merge your bank account, an automated rental collection system will handle all the chasing for you. This will significantly reduce the possibility of late payments, and result in peace of mind for you as a landlord.
Set up recurring payments
It’s not only landlords that find receiving rent online easier and more convenient. If you have younger tenants, they are more likely to expect a simple option to pay rent online. Tenants these days are happy to connect their bank accounts and set up recurring payments every month, as it is one less activity to be bothered about. Depending on manual methods of rent collection like paying by cash or cheque can be seen as dated, and this could be the deciding factor for a prospective tenant to choose another landlord over you.
Utilizing an online rent collection software can help you skip the paperwork - by storing it digitally. All aspects of an online transaction are recorded securely, for you to access whenever needed. Stop worrying about storing all receipts for seven years - a great system can store them for you, forever. At Tenantcube, we are working on a great feature to link rental payments with accounting/expense tracking, on our end-to-end platform for landlords. That way, all your incomes and expenses are automatically tracked and you have more time to focus on building your rental business.
Always take measures to avoid ‘he said, she said’ situations, especially when it comes to money. Online rent payments eliminate the need for having to endure several days of nail-biting anxiety if a tenant says, “Oh, the check is in the mail!” Or, “I’ve given my share to my roommate. He’ll pay you the entire amount in cash!” Streamline your rental operations by giving your tenants one single, simple method of payment - online. Receive instant notifications when payments are made, without a single effort from your side.
Online payments are easily the most secure method of transactions between landlords and tenants. Financial data is protected by several layers of security, including firewalls, SSL certificates, and regular maintenance. Using a recognized and landlord-centric software platform for online payments amplifies these advantages manifold.
Tips to Implement Online Rent Collection
- Communicate clear instructions - Establish your expectations with tenants right after they move in, by sharing a concise step-by-step guide to making online rent payments.
- Tenant assistance - Ensure that your tenants have access to your software company’s customer support team. For example, if you want them to use Tenantcube, make sure you share our email address, website and phone number - we have a dedicated team to help with all your tenants’ questions!
Choose online rent collection today, and confidently answer “Yes!” the next time a potential tenant asks if they can pay rent online. Make the process easy, and therefore make it more likely for your happy renters to keep paying rent on time, every time.