Property managers understand the stress related to the due date of rent payment. Tenants scramble to their office to beat the deadline while managers try to follow-up the residents who were not able to pay. They need to deposit checks at the bank and wait for payments that other tenants sent by mail. If this looks like a never ending cycle, it is about time to consider making some changes in the process.
Online rent payment is beneficial to property management companies as well as tenants. It enables tenants to pay at their own convenience and lets property management companies monitor and manage their transactions. Moreover, it gives an extra degree of security. Using online payments will avoid unfavorable instances like checks getting lost in the mail or being taken from a drop box. Rent payments will be directly deposited to the company’s bank account.
Even if online rent payment has its advantages, there are tenants who want to stick to traditional methods of payment. There are a number of tips that can encourage tenants to make the switch to online payment.
Let them sign-up before moving in.
Once tenants move into the place for rent, it will be more challenging to convince them to try online rent payments. It would be better to include it as part of the policy and get the information needed before giving them the keys.
Make the necessary modifications in the lease terms to support online rent payments.
A lease should have an explanation of all the payment options that renters could use. It should have a clear outline of all the requirements and best practices. Property management companies may want to include online payments as a requirement in the lease term. They can ask the advice of their lawyer regarding the legalities and ask if it is favorable to the company.
Make use of a tenant portal to make it convenient for them.
It would help to offer flexible payment options. It is a must for companies to use the tenant portal linking to their property website in order for tenants to conveniently send their online rent payments.
Send automated reminders through email.
Some tenants are late in paying rent only because they forget the due date. It would help to send them automated email reminders that have links to the tenant portal. These automated messages should be set up beforehand to avoid any hassle. It only takes a few clicks to reach all tenants.
Explain the major advantages to them.
Tenants may not be aware of the importance of online payments. Property managers should find time to explain its advantages, the automated payment options and their preferred payment method. They should answer the tenants’ questions clearly and address their concerns to make them feel at ease.
Accept different payment options.
With the right payments system, tenants can pay using recurring payments, credit cards, debit cards and ACH/checks. Paying via credit card can help tenants get more reward points or help those whose paycheck is not yet cleared. This system also lets them pay in full or set up recurring payments with the use of ACH.
Online payment adoption is beneficial to both tenants and property management companies. Companies should provide payment options that are convenient to renters not only to be ahead of competition but also to save time, effort and money.