Are your tenants asking for ways to pay their rent online? Or are you simply tired of having to keep track of numerous tenants and their rent payments, fees, and deposits each month? Either way, the pressure to convert to online rent collection may be high. Outlined below are the top three reasons why landlords should make the switch. After reading through these benefits, the choice should be clear.
#1: Automated Payments
One of the best parts of collecting rent via rent payment software is the ability to automate rent payments. Your tenants can sign up for automated payments by entering their bank account and routing numbers, when they would like the payment to be deducted from that account, and the amount of each monthly payment. Once they’ve signed up, their rent payments are automatically withdrawn from the account or charged to the card they dictated. They don’t have to worry about taking any direct action each month anymore.
For you as the landlord, it’s advantageous as well since your tenants are less likely to make late payments when they don’t need to remind themselves to complete their rent payments each time. Using online rent collection is as much an advantage for you as it is for your renters.
#2: Detailed Transaction Records
Do you have to slave over an Excel file each month, detailing who paid, how much, and for what? Despite being extremely tedious, this process can also introduce inaccuracies into your record keeping. One slip of the finger could mean you charge a late fee to a tenant who paid on time or don’t realize you did not receive payment from a specific person.
When you allow your tenants to pay for rent online using property management software, you receive detailed transaction records that tell you exactly which tenants have yet to pay, which ones paid late, and what exactly they all paid for. For example, if someone is paying for their pet deposit alongside their monthly rent payment, you can see that in your records.
These records also come in handy when dealing with disputes. Sometimes, malicious or not, tenants may file a dispute against you saying they paid rent when you said they didn’t, or for some other reason concerning the terms outlining rent payment set out in your lease. When you have extremely detailed and organized payment records, it is easy to combat these claims.
Further, if you experience any chargebacks, your online ledger can help you provide evidence to the bank and prove that the charge you issued is legitimate. Chargebacks occur when someone sees a charge on their account that they tell the bank is fraudulent. Sometimes tenants make this claim in an effort to get a legitimate payment off their account, or they might be genuinely confused over what the charge is for. If this happens to you, evidence of previous legitimate payments will most likely clear up the dispute.
#3: Flexible Payment Options
Allowing your tenants to pay how they want is the best way to get your rent money on time and in the right amount. Some online payment options that your tenants could use include a credit or debit card, or they might use ACH payments that send money directly from one account to the next. With property management software, not only can your tenants pay rent online free, but they can also pay how they prefer.
When walking your tenant through the online payment process, it could be helpful to note that they may prefer to use credit over debit cards. If they were to be a victim of fraud, using a credit card is more beneficial since the money is not “real” (is not physically present in the account) and can be more easily recovered. Since a debit card requires a set amount of money to be present in the account at the time of withdrawal, it can be difficult to get back any lost funds.
Collecting rent online is best done through quality property management software. Many software options are free, like Innago, and offer all the conveniences listed above. Making the switch is the most convenient option for you as a landlord and for your tenants as well.
After taking the time to research which method is best for you, start collecting rent online today.