7 Reasons Why Landlords Should Collect Rent Online
There are between 10 million and 11 million individual investor landlords in the United States. However, many of them are still collecting rent the old-fashioned way.
While many landlords still take rent in person or in the mail, collecting rent online is a much better option. There are some major advantages to collecting rent online, and doing so can allow for a more convenient and speedy rental payment and collection process.
Here are 7 reasons why landlords should collect rent online.
1. Streamline Rent Collection
One of the top advantages of collecting rent online is that it allows landlords to streamline the process of accepting rent. Using the internet is a more convenient way to collect rent payments for both the landlord and tenant and allows you would get access to deposits automatically.
If you have multiple properties and tenants to manage, it can be tough to keep track of all of the rent that you need to collect each month and contact each tenant when their rent is due. An online rental collection platform will help you collect the rent from each tenant automatically and this can lighten your burden.
The entire process of owning properties and collecting will be easier with an online platform. You’ll be able to see payment statuses in real time and verify that a rental payment has been made.
2. Make Rent Collection Fast
Collecting rent online will also allow you to save a lot of time and will speed up the rent collection process. With online rent collection, the rental payment process will be quick and easy for both tenants and landlords.
Rent can be transferred fast so that the payment can be collected efficiently. There will be no need to process the payments manually, collect rent in person, and take the time to deposit money at a bank.
With online payments, everything related to paying and collecting rent will be streamlined and efficient for everyone involved.
3. Allow Tenants to Set Up Recurring Payments
One of the big perks that come with using an online rent payment platform is that tenants can schedule recurring and automatic rent payments.
Setting up recurring monthly payments can help a tenant ensure that they don’t miss a payment and always pay on time each month.
As a landlord, you won’t have to worry about arranging a time to meet and having to plan around a work schedule to collect payment. You also won’t need to worry about checks getting lost in the mail. You’ll be sure to get paid consistently and you and your tenant will know what to expect each and every month.
4. Send Payment Reminders to Tenants
A great benefit of using online rent collection software is that you’ll also be able to send payment reminders.
Sending reminders to tenants can be incredibly useful and can help you ensure that they don’t miss a payment. It can help to keep them on track and ensure that you get paid in a timely manner.
Sometimes tenants can be forgetful and won’t remember a rental due date that’s coming up. If they haven’t set up recurring payments, then payment reminders can be very helpful.
5. Allow for More Payment Options
An online payment platform can also prevent late payments because it can give a tenant more payment options. When a tenant can pay with a variety of methods including eCheck, a debit card or credit card, or other options, they’ll be more likely to pay on time.
This flexibility is very useful and allows tenants to pay with the type of funds they have available at the time their rent is due. This will allow you to collect payments on time, and there’ll be less chance that a rent payment will be missed.
6. Improve the Security of Payments
Online rental payments are also more secure than other types of transactions.
By allowing for online payments, you’ll prevent the instances of a check getting lost or stolen and can prevent potential problems that come with a tenant paying in person or through the mail.
Online rental platforms are very secure. They’re designed with security in mind to ensure that a tenant’s information will stay safe.
In addition to this, you won’t have to worry about holding onto a check and keeping it safe once you receive it. There won’t be a period of time before you can make it to the bank in which you could potentially lose a check or damage it.
7. Keep Better Records of Payments
One of the biggest benefits of allowing tenants to make online payments is that you’ll have a record of all transactions that are made.
Mistakes can be made with paper record keeping. It can be tough for landlords and tenants to clearly track all payments that have been made.
An online payment system allows all records to be tracked accurately. You can view records as needed to determine whether a payment has been missed and can see a full overview of past payments.
This can be very helpful when trying to manage properties and ensure that your tenants are paying on time. Keeping records can also help with paying rental real estate e taxes.
Making the Decision to Collect Rent Online
If you want to improve the property management process and make things easier for tenants, you should collect rent online. Be sure to consider the benefits and advantages listed above when deciding whether you should use an online rent payment platform.
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