Managing Rent Collection Online – 5 Benefits

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san diego rental properties

What don’t your tenants do online these days? Modern renters, especially the millennials who make up more than 40% of the market, live a life that is at one with the internet. They rely on technology to get them from point A to B, manage their finances and keep their appointments. It makes perfect sense, then, that they’d love the ability to make online rental payments.

Are your rental properties still accepting cash, checks or money orders and, if so, why? Accepting online rental payments is a mutually beneficial practice for you and your residents. It’s not only convenient, it saves times and money. Here are 5 major benefits to letting your tenants pay online.

1.    You’ll save time. And you’ll improve customer service at the same time. Processing payments the old-fashioned way can be tedious. The valuable time previously spent making deposits at the bank can now be devoted to marketing efforts.

2.    You’ll minimize or reduce issues. Past due payments are one of the biggest challenges property owners face. When you give residents the opportunity to set up automatic payment plans, rent delinquencies can be drastically reduced.

3.    It reduces operating expenses. With automatic, recurring rent collection and built-in accounting and reporting, you’ll keep property management fees low.

4.    You’ll improve cash flow. Rental properties won’t have to wait days for checks to arrive and then wait even longer for them to clear.

5.    It simplifies dispute resolution. Online rental payments let you create a digital paper trail, making it easier to verify a tenant’s claim the rent’s been paid.

What Residents Look for from an Online Rent Payment Portal

Surveys have shown that residents equate online payment options with the quality of a rental property. Not only do they appreciate the 24/7 availability, they also want the payment portal to:

•    Be intuitive and easy to navigate
•    Work across all platforms so they can pay wherever they are, whether by mobile, tablet or laptop
•    Include an auto-pay option and timely reminders feature
•    Come without any extra processing fees, especially if the option is mandatory

Why Electronic Payment Matters

According to a recent survey by American Consumer Credit Counseling, nearly 95% of those polled said they paid at least one bill through their computer or mobile device. A large majority – 77% – said they find it easier to pay and track bills online instead of the traditional through the mail process. As high as that number is, it will continue to grow as more businesses add mobile options.

Change Takes Time

There are still renters out there who prefer to pay by check, but statistics show they are becoming rarer as time goes on and technology evolves. The new generation of renters have wholeheartedly embraced digital transactions; in fact, they’ve come to expect it.

Online payments will be the norm in the not-too-distant future. If your rental properties are not already offering your residents and owners this advantage, it just might be time to seriously consider doing so.

 

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