Many landlords and tenants are accustomed to traditional rent collection. They view cash or check payments as trusted methods and don’t see a need to change.
However, there are several concerns with these methods. Cash and check payments are less secure, less sustainable, and more vulnerable to theft, misplacement, or clutter.
Property management software offers a more secure solution by moving rent collection online. Online rent collection features offer a range of benefits and have become increasingly popular among landlords and tenants.
Here are six reasons why collecting rent online is a must.
Table of Contents
1. Convenience
Online rent collection is a much more convenient way to collect rent than traditional methods. If you accept cash or check payments, you need to meet with tenants individually and be physically present for all payments so that you can count/verify payments and issue receipts. Otherwise, you risk confusion about who paid how much and when.
Property management software eliminates this inconvenience. Instead of cash or checks, tenants pay with debit, credit, or ACH transfer. Your software keeps track of payments so that you don’t have to.
2. Record Keeping
Tired of storing all your records in a cluttered file cabinet or disorganized hard drive? Record keeping is another great feature of property management software.
Software with online rent collection automatically generates records to keep track of bills and payments. If a tenant comes to you with a question or concern, you’ll have instant access to any record you need.
What’s more, your records go where you go. With property management software, you can view documents anywhere simply by logging in to your account.
3. Security
Many landlords have concerns about the security of online payments. Fortunately, many of these are unjustified. Property management software encrypts all sensitive payment information, including bank account and routing numbers.
Online rent collection also eliminates security issues of cash and check payments. Transferring and storing paper money always involves some risk. However, property management software is fully capable of completing these transactions electronically.
If you’re concerned about digital theft, you probably don’t need to be. While rare, any discrepancies or problems that do occur are quickly flagged and brought to your attention by your software. If something’s not right, you’ll know much faster than you would with traditional payments.
4. Accountability
It can be difficult to hold tenants accountable for honest mistakes or difficult situations. But when rent is due, you shouldn’t make any exceptions.
Property management software can help you keep your tenants accountable for their payments and late fees while also holding you to the lease terms. If a tenant fails to pay rent on time, property management software acts as a neutral third party. It will automatically push any incurred fee to the tenant’s account without your involvement.
You can also configure your software so that renters can’t make additional rent payments until they’ve paid any late fees in full.
5. Sustainability
Traditional business models can quickly drain resources. If you manage your properties manually, you already know how much paper is wasted on a daily basis.
Online rent collection is one way to reduce waste and mitigate your business’s long-term impact on the environment. Digital documentation of payments makes the rent collection process entirely paperless. Your tenants will also appreciate the ability to quickly access records without worrying about tracking down individual printed documents.
Plus, you’ll save money on printer paper!
6. Tenant Experience
After accepting a great tenant, a landlord’s number one priority is keeping that tenant. One way you can do this is by improving tenant experience throughout all parts of the leasing process.
Online rent collection is one feature that significantly increases tenant satisfaction. Renters have their own jobs and lives, so being able to pay rent from anywhere—or even on a mobile device—is a huge convenience. In addition, tenants will no longer have to make monthly trips to the bank when rent is due.
Online Rent Collection: A Twenty-First Century Must
Today, digital business is everything. From convenience and efficiency to making life easier for your tenants, online rent collection is one feature you shouldn’t overlook. With a few simple steps, you and your tenants can benefit from collecting rent online and other valuable features of property management software.