We’ve come across many landlords in the past few years who prefer their tenants to pay their rent by check.
While an old-school mentality may be fine for some situations, when it comes to collecting rent, it simply doesn’t make much sense.
The myths about collecting online rent payments are unfounded. Yet many landlords continue to be skeptical about the idea.
The truth is, most tenants prefer to pay their rent online.
It’s easier than mailing a payment. It takes less time to click a few buttons than to write a check. Tenants can make payments from anywhere at any time. It’s great for the tenant, but is it helpful or harmful to the landlord? The answer is simple – it’s a great idea.
Here are 5 reasons why you should start collecting rent payments online.
1. Tenants Can Set up Recurring Payments
As a landlord, having tenants set up recurring online payments only makes your life easier. In most cases, tenants that pay the rent late do so because they forget – not because they’re bad people or don’t have the money to cover that month’s rent. With recurring payments, they won’t be able to forget.
By allowing your tenants to set up a recurring monthly payment, you can say goodbye to late rent checks. Tenants can set up their payments to draw from a checking account, savings account, or credit card. All they need to do is allow their bank to transfer the funds to your account on the same day every month.
If rent is due on the 1st of every month, they can set it up so that the money transfers on the 1st or a few days before. You’ll know exactly when you can expect your rent each and every month, and you’ll never have to hear the excuse that the check is in the mail.
2. Automatic Reminders and Late Notices
Some tenants may not feel comfortable setting up recurring monthly payments – but you can still allow them to make payments online.
To make sure your tenants pay the rent on time, set up automated reminders. You can send them a friendly reminder via email a day or two before the rent is due and include a link that makes it easy for them to pay. If you don’t want to send reminders ahead of time, set up a system where you can email them if the rent is a day or two late.
3. See Real-Time Updates
Depending on the platform you use and the way your bank processes payments, it may take a few days to process your payment. But even if the payment is processing, you will be able to see updates in real time. You’ll know exactly when a tenant has made a payment and you can monitor your payments from any laptop, tablet, or phone.
By accepting online payments you won’t have to monitor your account to see if a check has cleared. You won’t have to run to the bank to make your deposits. And you won’t have to worry about a check getting lost in the mail. You can view your account online at any time to see if your payments are there.
4. Ability to Accept Credit Card Payments
Many rent payment systems allow tenants the option to use a bank account or a credit card.
Why does this matter?
While we don’t want to encourage anyone to go into debt by paying their rent on a credit card, it is a great option if there is a month when money is tight. It’s a great backup solution that offers tenants the option to pay through the method of their choice.
There are lots of people who use their credit cards for everything – if only for the fact that they love to rack up those rewards points.
Some people pay every monthly bill on their credit card and pay their credit card back at the end of the month. As a landlord, it’s best to give your tenants multiple payment options.
As long as the rent gets paid on time, do you really care where it’s coming from?
5. More Secure
When it comes time to select an online payment processor, make sure it guarantees 100% security and is PCI compliant. This makes online payments a safer and more secure method of collecting rent than receiving checks sent through the mail.
Collect online rent payments and you’ll never have to deal with a check getting lost by the postal service. You’ll never have to fear that someone might steal those checks from your mailbox. You won’t have to worry about losing or misplacing a check before you can make it to the bank.
The online payment process makes rent collection safer for both the landlord and the tenant.
Online payments also process much faster than checks. And you’ll never have to worry about a tenant bouncing a check again.
Why Online Payments Make Sense
To find good tenants, you have to keep your rental units safe and up to date. As a good landlord, you should take the same approach to the way you receive rent payments. Most people pay their bills online, so it’s best to give your tenants the option to do so with their rent. It’s easier and more secure for both parties involved.
Encourage tenants to set up recurring payments that transfer automatically to your account on the same day each month. For tenants who don’t want to create automatic payments, set up a system that sends them reminders before the due date or reminders if they are late.
To give tenants the most flexibility, offer them the option to pay by debit card, bank account, or credit card. The more payment options they have, the more likely it is that you’ll receive your rent on time.
Monitor payments in real time without ever having to go the bank or track down a payment that got lost in the mail. And, most importantly, make sure you use a secure online payment system that protects both you and your tenants.
If you’re used to collecting rent by check, it may seem strange using an online method. But once you get used to it, you’ll be amazed at how easy and efficient it can be.
Lindsey is the community manager who comes to Siesta Key with several years experience managing luxury communities throughout the DC metropolitan area. As a Montgomery County native, Lindsey feels as though Siesta Key is what Rockville has been missing. It is centrally located however, it proves that you can have plenty of space without losing style and sophistication. Learn more at https://livesiestakey.com/