Here’s the old way of collecting rent payment from tenants:
- You receive a check in the mail or you drive across town to collect a check.
- You file it for deposit at a later time.
- You mark “paid” in an accounting ledger.
- You go to the bank to make a manual deposit.
- You fill out a bank deposit slip and sign the check for deposit.
- You wait in line and make the deposit.
Wouldn’t it be nice if the rent payment process involved none of the above?
In fact, it already does—in the form of online rent payments, a boon to both landlords and tenants. Increasingly, landlords are jumping on the bandwagon,too. According to a recent TransUnion survey, more than six out of 10 landlords prefer to always (or frequently) use online payments to collect rent from tenants.
Here are five reasons why online rent payment is easier and more convenient for both landlords and tenants:
1. Schedule recurring payments
The tenant can schedule recurring online payments that automatically transfer rent payment from the tenant’s bank account on the same day every month. They do not have to remember to write a check and you don’t have to remind them.
2. Use reminders and multiple payment options to help with on-time payments
Tenants, and especially millennial tenants, are already inclined toward conducting business online. In fact a recent survey by the National Multifamily Housing Council found that 78% of tenants prefer paying their rent online. They welcome the opportunity to select the type of payment most convenient for them, including:
- Credit card
- Debit card
Landlords and tenants often have the ability to choose from several different ways to pay, including:
- Mobile app
- Text message
In addition, online rent payment services often offer email or text message reminders so your tenants know exactly when payment is due. By offering tenants multiple ways to pay and payment reminders, you’re more likely to be paid on time.
3. Greater visibility into the real-time status of payments
Wouldn’t it be great to never again hear the excuse, “The check’s in the mail”?
With online rent payments, you can see when money gets deposited in your account. Viewing the real-time status of your account translates into far greater visibility for you and more accountability on the part of your tenants.
4. Streamline your back-office
Think of the time and effort saved by not having to physically collect and deposit tenant checks every month.
And no more disorganized, hard-to-reconcile record-keeping. Since every transaction is tracked and recorded within your online rent payment account, you can easily see which tenants have paid on time.
5. Enhanced payment security
For tenants, online payment means no more checks stolen or lost in the mail. For landlords, there’s a clearer record of every monthly transaction.
“The beauty of online payment systems is that they give you a clear paper trail and bookkeeping automation,” writes Che Chiu Wong in a blog post at BiggerPockets. “This leaves little room for discrepancies and eliminates inconclusive arguments between the landlord, tenants, and property managers.”
Learn more about online rent payments through RentPayment, a cost-effective way to accept electronic payments for your rental properties.