One of the most unpleasant elements of property management is rent collection. Switching to an online rent payment service, on the other hand, may alleviate this burden and assist in speeding the entire process by changing it with the Commercial Property Management Software. Once you understand your current tenants' issues, it is simple to persuade them to pay rent online. The most common complaints received from tenants regarding paying rent online are here.
The Trust Issue While Paying Online
Banks do nothing to engender goodwill among low-income or cash-flow-challenged consumers, believe it or not. Renters who do not wish to participate in banking will be more willing to sign up for a rent collecting service that does not need a bank account, assures no overdraft fees, or otherwise assists a renter in avoiding expenses, whether disguised or not. When contemplating a rent collecting agency that doesn't reveal costs because "the tenant pays," proceed with care. Owners think they are excellent, but they frequently have trouble getting renters to participate.
What property managers can do: Inform your tenants about the security features of the online rent payment system you're using. Suppose you're processing payments using platforms; in that case, you may point residents to information that these businesses have released about the security measures they take, such as encryption and two-factor authentication. Older tenants, in particular, have a lot of worries and have a lot of misconceptions about how internet transactions operate. So it could be a good idea to suggest that they call a customer care representative at their bank to learn how their security is ensured during the process.
The Failure of Online Payment
"There is a small danger in completing any financial transaction online," tenants warn. The physical check is a more dependable method of demonstrating payment. The website failed after authorizing a transaction, resulting in a late charge.
What Property Managers Can Do
Remind tenants that traditional payment methods such as cash, money orders, and checks come with their own set of dangers (such as loss or theft), whereas online rent payment options avoid them. Make sure tenants know who to contact if they have technical issues paying their rent online—knowing that someone is there to help alleviate some of the tension that comes with doing so. Finally, if you haven't received a payment from a resident who makes monthly online rent payments manually, try reaching out before incurring a late charge.
After knowing the main objections by the renter and how the project manager can deal, let's find out the online payment method.
- Set up periodic payment reminders: The majority of tenants fail to pay their rent on time. Rent collection will improve if reminders are sent closer to the due date. Manually issuing rent reminders, on the other hand, takes time. An online rent payment system with Digital Customer Experience In Real Estate will provide automatic payment reminders that can assist in sending the renter accurate and regular reminders.
- Instantly see the status of your rent collection: Property managers can quickly view the status of rent collection thanks to a single payment system linked into their property management software. When you collect rent online, you'll receive a digital receipt, and if your property management software is connected, updated data in your accounting module.
- Make property management operations more efficient: Many worries, such as check bounces, insufficient balances, and cash loss, are eliminated with online payments. It confirms online payment receipts, saving the property manager the time and effort of manually creating receipts. Integrating the online rent payment system with accounting and reporting software will expedite the process and ensure everyone is on the same page.
- Automate procedures to save money and time: Property managers waste time and gas every time they drive to collect payments in person and then make a dash to the bank. Creating payment receipts and depositing funds in banks can take a long time. Automating the process and shifting online is a practical solution for property managers and the public.
- The built-in payment module is safe: Online payment methods are safe and secure, and they reduce the possibility of cash or check fraud. Consumer data is protected using cloud-based online rent payment solutions. It is a fantastic strategy to safeguard both you and your tenant.
The advantages of collecting payments online are numerous; nevertheless, a renter may be turned off by the higher transaction fees required when using a credit card or debit card. Consider having an ACH (Automated Clearing House Network)-based in-built online payment option to circumvent this. The electronic transfer of funds between accounts at different banks is an ACH transfer. To guarantee a seamless onboarding and acceptance of the online payment system, a property manager will need to educate the renter on the benefits.
Tenant Advantages Of Online Rent Payment
We discussed the advantages of using an online rent solution for property management or landlord, but there are also advantages for tenants.
- Set up recurring payments to ensure you never miss a deadline: A renter can set up regular payment advice in his account using an online payment solution to ensure that the rent is deducted on time. It will speed up the payment process and ensure that the renter never falls behind on their payments.
- Avoid paying late fees: Once a renter receives information on a payment reminder, the resident portal's built-in rent collecting module may assist them in making payments immediately. They will be able to avoid late payment fees due to this.
- Make a secure and safe payment whenever it is convenient for you: Making payments through a rent collecting site eliminates the need for the renter to disclose his account information with others. Payments can be made using resident portals, mobile applications, or payment connections. It provides convenience as well as security.
- Go paperless to save the environment: By going online, you may save money on paper and petrol. There are no checks or receipts, and now travel to the bank or the property manager's office when you pay your rent online! Rent payments may be made online, which is both easy and safe. It helps acquire immediate information and speedier turnarounds when shutting accounts linked to rentals, saving time and money.
Bottomline
REDA is a property management system with an integrated payment solution and can help with the entire rent collecting process. Customers may incorporate the rent payment module in their existing property management software using our pay-as-you-go method.
