The internet has become a de facto center of commerce, and the rental business is no exception. When it comes to reliable and effective rent collection—an undeniably important part of your success as a landlord—the advantages that online platforms offer are far superior to those offered by traditional methods of rent collection, such as cash or checks.
Many landlords are taking advantage of these benefits and relying on property management software to collect rent online. Let’s take a look at four reasons why following the trend and making the switch is in your best interest.
- Avoid Late Payments
As mentioned above, reliable rent payments from your tenants are incredibly important for the sustainability of your rental business. Monthly rent payments are almost certainly the biggest regular source of revenue your business will have. Consequently, any effective rent collection method should take steps to minimize late or missing rent payments.
Online platforms are a huge step in helping your tenants pay on time. Property management software often allows tenants to set up an automatic payment system that withdraws money every month to go towards rent. These payments avoid the intermediary steps of manual payment by linking the software directly to the tenant’s bank account.
This is called an ACH rent payment, and it is the same process often used for direct deposits for workers. Not only does it eliminate the possibility of your tenant forgetting to pay on time, but it is also a secure and reliable method of payment that keeps sensitive bank account information safe.
- Flexible Rent Collection
The rent collection process is two-sided, and you are part of the transaction. Fortunately, online platforms make your role—collecting the rent payment—just as easy and flexible as it does for the tenant.
When your tenant submits their rent payment through property management software, it can be done from practically anywhere. This is especially true if the software exists on a mobile app and can be accessed even without internet connection. Similarly, as soon as a payment goes through, you are able to access and collect it right away. Not only is the process secure and flexible, but it is also a lot faster.
- Accessible Technology
If part of your hesitancy about switching online is that it might involve a steep learning curve for your tenants, keep in mind that property management software is designed around the average person. Nothing about its infrastructure involves industry-specific language or advanced accounting.
Additionally, since so much of everyday life has shifted online, the average tenant is bound to have the intuition required to navigate and figure out online rent payments. Don’t expect much friction or confusion when you make the switch.
The technology is also accessible in that some property management software platforms don’t charge users to access the software. Some operate on a business model that keeps your ability to list properties, sign leases, or collect rent online free from any monthly subscription fees.
- Automatic Record-Taking
Arguably the biggest benefit of online rent collection is its ability to automatically generate records of any transaction. Whenever a rent payment is made each month, the property management software makes a note of the transaction that is stored and viewable by both you and your tenants.
Not only does this mean that you don’t have to go through the process of manually keeping records each time rent goes through, but it also means that your tenants are able to get records of their own. If a tenant is taking a hands-off approach to rent payments and relying on automatic ACH payments, access to an invoice and a receipt every month lets them know that the process is working and that their money is being sent to the right place.
Conclusion
You’re juggling a lot of logistical things as a landlord. The better your business does, the more tenants you have, and the more difficult it can be to keep track of everything going on. Landlords who are regularly using property management software have access to a method that is faster, more flexible, and sometimes completely free of charge.
If you’re still utilizing traditional methods of online rent collection, hopefully this article has demonstrated ways in which property management software can take weight off of your shoulders surrounding one of the most essential parts of your job.