In this era of quick and reliable Wi-Fi, mobile applications help managing your day–to-day activities and allow you to make timely payments of various bills. If property owners accept online payments from their tenants, it would benefit both the parties. It saves time, it’s convenient, and above all, it improves the cash flow of property owners. The business of property management can benefit a lot by allowing the tenants to pay their rent online. The five key benefits include:
1. Controls the cost of management
The online collection of rent brings down overheads of property management personnel. Consequently, it allows them to bring down management expenses, making their business more profitable.
2. Gives better service to clients
Since the personnel of the management team saves a lot of time needed for the collection of bills and processing of checks, they can focus more on marketing and building healthier relationships with the residents.
3. Minimizes late payments
Allowing the tenants to make payments electronically through credit card, PayPal or e-checks significantly brings down the rate of late payments. The management can send reminders to the tenants before the rent falls due. Timely reminders surely prompt the tenants to remit the payment by the scheduled date.
4. Improves security
The system of making online payments removes the risks normally associated with checks or cash payments. You could expect the insurance company to bring down its coverage rate for you when you don’t keep cash on-site.
5. Minimizes the chances of disputes by keeping track of the payments
When you make or receive an online payment of rent, a digital record is automatically generated. If any resident claims having made the payment, you can verify their claims spontaneously. You get especially prepared software for managing rent collection. The software keeps all statements updated, evaluates late fees, and keeps a track of partially made payments. The secure system of processing rent payments facilitates the cash flow.
What are the expectations of tenants from an online system of paying rentals?
It has been realized that residents usually prefer patronizing properties that extend the option of paying rent online. Apart from the facility of paying 24X7, tenants also expect the website to have:
- A user-friendly website that is convenient to navigate.
- The site should contain a detailed monthly statement, separately listing extra charges, if any, and services.
- Offer the options of making payments using debit or credit cards.
- A system for making recurring payments automatically.
- No processing fee should be charged, especially if it is mandatory to make online payments.
What’s the relevance of making online payments?
Specialists estimate that about fifty percent of the entire US population paid bills online during 2015. This percentage is improving gradually, as more and more companies extend the offer of making online payments, and financial institutes adopt digital banking practices.
This is not to deny that some renters will always prefer making payments through checks in the beginning of every month. However, banking activities indicate that people feel more at ease with digital dealings than they used to. It is high time for property owners to seriously think of extending their tenants the facility of making online payments.