Before the innovation of software systems, which help the property managers with an online rent collection, the property manager practically moves from one door to another to collect rent payments in cash from various tenants. The act of physical collection of rent payment was one of the things that made managing a real estate property difficult, and not too many property owners wanted to take on hands-on management. Also, there were not too many credible property management companies to bank on.
One of the critical hiccups with real estate management is the problem of timely collection of rent payment. Tenants not paying up their rent is a concern that can be worse than taking in tenants with a criminal background or complicated eviction. More so, tenants can have a plethora of reasons for not paying their rents in time, and forgetfulness can be one of the reasons.
Although property management is a balancing act and doesn’t work easy, thankfully, the dilemma of stress with collecting rent in person is nothing to worry about anymore, ever since the intervention of property management systems, which ensure an on-time collection of the due. More so, employing the services of an online payment processing hub makes real estate investment easier for the landlord and the tenants.
Landlords and tenants equally benefit from the relief this online rent payment technology provides. Read on to learn about the convenience and various benefits that come with having tenants make their rent payments over the internet.
1. Improvement in Customer Service
Tenants should be given the much-needed satisfaction to build an essential landlord-tenant relationship, and the improvement of customer service also provides the property manager with some degree of credibility. Most tenants love to have things done smooth and timely, and this is a more reason why adopting e-payment is an excellent idea, particularly when you consider tenants’ convenience, and you also want to collect payments on time.
Unlike before, when rent payments are collected in cash from door to door and processed into the landlord’s bank account via deposit or check, with a payment alert on the tenant’s mobile gadget, he or she can head straight to the online hub and make the expected payment. This payment process ultimately saves time and also enables the property manager to focus more on the marketing side of the investment.
2. The convenience of Rescheduling Recurring Payments
Earlier in this article, it was stated that forgetfulness could be one of the reasons why tenants can fail to pay their rent on time. Therefore, most landlords reschedule recurring payments for a timely remembrance of the tenants of rent payment. To the tenants, rescheduling payments help to bolster credits score and payment history, which makes it easy to get into any property based on these stats.
Most of the software systems used in online payment give the tenants and option of having the monthly rent payment deducted from their accounts when the time is due; this is a function of settings done by the tenant. On the part of the landlords, it saves them of the stress of waiting to have the check-in their mail, going to the bank to deposit in person, and manually recording the rent payment in their accounting book; there is an online record for the payments.
3. Enhanced Security for both Tenants and Landlords
In recent years after the intervention of new payment technologies, most landlords and tenants have been more comfortable with online transactions. Online payment is a reliable form of making payment that saves time, enhances efficiency, improves cash flow, and, more importantly, reduces cost.
Cash payments can put both the tenant and landlord at a security risk. Unlike in the past, the world has evolved so well that people can move around with their phones that have a bank account with billions of dollars. It is easier to move around and make the necessary payments when needed.
This online option of payment is a reliable one that can be relied upon for secure payment. Not maintaining cash on-site can attract less backing from the insurance company. This is a con that most landlords look to avoid when it comes to managing their property investment.
4. Tenants can Pay Rent Online at Anytime
There are various methods of online payment, like Stripe, Payoneer, PayPal, credit card, and eCheck. The approach to be used by the tenant hinges on which one is preferred by the landlord. Regardless of which one is chosen, payment at the convenience of the tenants is ensured. With online rent payment, tenants can remotely pay up their rent the day it is due.
Unlike the old method of payment where tenants may need to go out to mail a check to the landlord, thereby putting the tenant at risk, online payment is secure, fast, stress-free, and relatively reliable. Also, online payment can make tenants avoid late payments, which is to the advantage of the property manager and the tenant, too.
5. Easier Dispute Resolution and Audit Track
The use of an online payment method to collect rent for tenants makes it easy to settle possible financial arguments or disputes. There are different tenants concerning attitudes toward the payment of rent. A dispute over payment can erupt when a tenant claims to have paid his due, unknown to the landlord. In this case, the landlord can easily access the software system right away to confirm the validity of the claim.
Most of these software systems come with the option of creating an online tenant portal, which makes it easy to check which tenant has and has not paid their dues. More comprehensively, the property management company track all the tenants’ transactions to see what has been paid and what is left.
To the tenants, this online tenant portal enables them to check their payment histories, the date paid, and the amount left to balance up if any. All these give no room for dispute and grants a well-informed financial resolution.
6. Payment Reminder
It is a cliché that most tenants make excuses for forgetfulness or occupied schedule when it comes to late rent payment. Yes, these software systems can be useful in making sure cases like this never come into play in the first place; this is where ‘a reminder’ option surfaces.
This reminder from the software alerts the tenants when the rent payment period is due. In this case, the tenant pays on time, and the landlords not only don’t need to physically remind the tenant of paying up but also get their money in time. This way, the tenant can boast a high credit score and an excellent reputation for living peacefully in residence.
The job is just to get all the tenants to sign up, and, ‘bang,’ they can make use of this excellent extra option.
What Should The Online Rent Portal Feature?
Having your tenants make rent payment online is as easy as stated earlier in this text, but the software system to be used must be of considerable convenience to the tenants. These software systems have an online tenant portal which must boast some properties to be really considered useful by the tenants.
It should be noted that the tenants will not reckon with anything complex to use and tricky. Past surveys have shown that the majority of tenants assume that an excellent software system must provide an online payment option. Tenants expect online rent payment portal to have the following:
- 24/7 availability
- It must be user friendly and easy to navigate through
- It must be easy to track monthly statements, extra fees, and other services separately
- A proper online rent payment portal must have multiple payment options like eChecks, PayPal, Payoneer, Credit and Debit cards, etc.
- It must have an option to enable an automated recurring payment setup, which is useful to both the landlord and the tenant. It reduces the problem of tenants forgetting to pay their dues
- If the online payment is mandatory for all residents, it should be ensured that the payment portal doesn’t come with processing fees.
As stated in this article, it is evident that having your tenants make rent payments online does not only make them comfortable, but it also makes the management of the property a lot easier on the rent collection front.
It should be noted that some tenants may need to be convinced with this form of payment, that’s where the property manager has to come in to make sure the system is adopted for convenience.
The benefits are compelling enough for the real estate property owners. Leveraging an online payment method might be the cutting edge for investment needs to make your management better and easier on you and the tenants. Now is the best time to get your hands on a reliable property management system with an online rent portal that boasts all the features, ranging from 24/7 availability to having multiple options of payment.
Start today and enjoy all that comes with it!
The Booking Ninjas system combines a property management system (PMS) and a customer relationship management (CRM) system to give our users the ability to have a complete experience in one platform. Such a system can only be successful if built on the appropriately powerful platform fit for it.
With that in mind, we can genuinely assure you of the best digital management experience available. We plan to move in ways that guarantee our vision, which is to be the leading provider of guest targeted digital solutions in the hospitality industry. The only to get there is to provide long-term beneficial digital solutions to all our users.