Rental properties are only successful when units stay occupied and tenants pay their rent. There are many methods you can use as a property management company to keep units occupied, and there is one great option you can use for collecting rental payments – accept online payments. Here are three benefits of allowing your tenants to pay their rent online.
When people pay with checks or cash, you will physically need to record the receipt of these payments. If you do not record the receipts right away, you may forget to do it, or you might make mistakes.
Allowing people to pay online makes it a lot easier to stay organized. You could even set this up so that the payments made by tenants automatically post to your accounting software. This would keep you records current and accurate at all times. This is also a great way to keep a paper trail of all payments you collect.
Accepting cash for rental payments does not really present any major risks, but checks do. The only real risk of accepting cash is the chance that someone might rob you to get the cash you are carrying. With checks, you are taking the risk that they may bounce. It can be hard to collect on a bounced check, and dealing with this issue can cost time and money.
When people pay online, there is a very small chance that there will be an issue with the payment. Typically, when a person pays with a credit card and has an issue with the transaction, the person that used the card will incur problems, whereas the person receiving the payment will not.
It may be easier to collect
People in the U.S. are writing fewer checks today than ever before, and this is primarily because of the ease and availability of electronic banking. If you only accept checks or cash payments, it might be harder for the tenants to pay their bills. If you decide to accept credit card payments and online payments, your tenants can pay their bills from their computers or phones. Paying bills does not get much easier than this.
If you begin offering this option, you are likely to have a much easier time collecting rent, and it may save you a lot of time.
Operating a property management company like Taylor Realty effectively requires keeping up with the latest trends. If a person owns rental property and is looking for a property management firm to hire, he or she might want to hire a company that is set up to receive online payments.