Payment problems are one of the top concerns of all landlords. It's a more concerning problem for landlords than troublesome eviction or tenants with criminal backgrounds. According to a survey conducted by CitiGroup, more than half of Americans pay their bills late due to forgetfulness. It is no surprise because tenants usually have hectic schedules.
Because of the advances in technology, landlords will have the solution to this dilemma. Tenants and landlords will now be able to utilize online payments to make the entire process easier and more centralized.
Paying rent online provides several benefits and brings convenience to both landlords and tenants. Here are some of the advantages of paying and collecting rent online.
1. Online payments allow tenants to pay their rent anytime
Various issues arise when landlords collect rent in person or through the mail. Some of them are late payments, check bounce or the inconvenience of physically collecting and cashing the checks. With online payments, tenants can pay anytime and anywhere at their convenience. Usually, tenants forget to mail checks or may not be able to go out of their homes to send them.
Online payment allows tenants to send payments before the rent is due. It avoids late payments with corresponding fees.
2. You can schedule recurring payments
With online payments, both the tenants and landlords can enjoy the convenience of scheduling recurring payments. Landlords don't have to remind their tenants if their rent is due. Tenants will also be able to improve their rental history and credit score.
Online payment has an option to "set it and forget it." It ensures their rent payments are automatically deducted from their bank accounts every month. Landlords will be saved from the inconvenience of waiting for the check, making deposits in the bank, and recording payments manually in their accounting records.
3. It has payment options and reminders
Online rent payment has payment options and reminders that notify tenants when their rent is due. This allows them to make payments on time, thus decreasing late rent payments. Tenants can deposit rent into the landlord's bank account without the landlord's banking information. Usually, payments are transferred via the ACH network. Other payment platforms include mobile apps, websites, pay-by-phone services, and text messages.
Tenants can also pay via debit card, eCheck, Paypal, SMS payment, cash at local grocery stores, and credit card, which may involve additional fees.
4. You can view payment statues any time and in real-time
Online payments provide digital documentation, which allows you to skip the paperwork. Lots of services can be imported to the accounting software smoothly. It allows you to save time and spend it on other more important things like tenant screening.
On top of that, you'll be able to receive real-time notifications and payment statuses if the money transfer is deposited in the landlord's account successfully. It increases the tenant's accountability and allows greater visibility of the rent transaction status across different properties.
5. Rent payments are secured
Online rent payments are one of the most secure options for both landlords and tenants. Tenants don't have to worry about stolen or lost checks in the mail. It also prevents them from becoming a fraud victim because they don't have to show their bank information, unlike using checks.
Online payments will not only make both the tenants and landlords' lives more convenient. It also secures their payment and bank accounts. Paying rents online will also reduce late payments and save you from the hassle and additional fees associated with late payments.
