If you are a landlord still relying on traditional methods of rent collection like cash or checks, you may have noticed that many of your peers collect rent online. Should you make the switch yourself? If you do adopt online rent collection, several benefits are in store for you which will make one of the most important parts of your job one of the easiest.
It can feel like a big decision to make, so let’s take a look at some of the things you should know about online rent collection and property management software that may help the decision feel a little easier.
Accessibility
First, let’s start by admitting that learning a new online platform can seem very intimidating, especially since in this case it is related to accounting. However, rest assured that the business model of property management software relies on being as usable and as accessible as possible.
These platforms are carefully designed to be navigable by the average user, and they generally do not require advanced knowledge about the real estate industry or rental accounting. You’ll be sure to pick up any online rent collection service without issue.
Free or Low-Cost Access
Another way that these platforms are accessible is that they are usually very cheap or even free. Low cost opens them up to landlords and rental business of all shapes and sizes. Landlords with a few dozen units or less might pay as little as $35 per month. Even if you only have a few tenants, you can still take advantage of the benefits that state-of-the-art online platforms offer.
Automatic Payments
Your tenants will thank you when they are able to set up automatic rent payments that withdraw directly from their bank account every month when rent is due. Not only do automatic payments keep tenants from missing deadlines and paying late fees, but it also simplifies the rent collection process. Compared to having to mail or hand-deliver cash or a check, automatic payments mean a tenant doesn’t have to do anything at all to pay their rent on time, every time.
Flexible Collection
Along those same lines, your job becomes a lot more flexible too. Once a tenant has submitted a rent payment, rather than needing to collect it from a mailbox or see your tenant in -person, the payment will automatically be transferred to your bank account, meaning you can view your funds from anywhere with a reliable internet connection.
Not only that, but because payments are entirely online, there is no need for you to take the time to visit a bank each month to deposit cash or checks.
Automatic Record-Keeping
Property management software also automatically generates records for you whenever a transaction is completed, meaning that all the time you would otherwise have to spend manually creating important records of any payments can now be invested into other parts of your business.
Transparency
Tenants also receive a receipt with each payment, meaning that they also have accurate documentation of their payments. This can prevent disputes in the future, since both you and your tenant can also access these records in a rent payment portal at any time if there is any disagreement about the timeliness or amount of a given payment.
Safety and Security
Compared to cash or checks, it might seem like online payments that involve sensitive bank account information might be vulnerable to breaches. However, property management software employs encryption technology that encodes this sensitive information, protecting it against cyber-attacks or hackers.
Availability
If you are still hesitant about the switch, you should know that you do not ultimately have to decide on one method only. It is always possible for you to offer online rent payments as an option for your tenants. The decision has very low stakes. However, your tenants are sure to notice the benefits for themselves if they choose to make the switch.
Conclusion
As a landlord, you undoubtedly rely on the funds that you get every month from your tenants’ rent payments. They are more than likely your largest regular source of income. For that reason, it is incredibly important to take whatever steps you can to make sure the process of rent collection is easy, effective, and reliable.
With readily available technology that makes life easier both for you and your tenants by offering all of the benefits listed above, it should be clear that you have nothing to lose by adopting property management software as a method for rent collection.
