One of the latest technologies that is really hitting the mainstream lately in real estate technology is online rent pay. Once the domain of early adopters, major firms are now accepting rent through mobile apps. Because the benefits are so numerous, every landlord should consider it.
In the old way, there was a huge hassle at the beginning of the month. Collecting and keeping track of checks, writing out deposit slips, and making trips to the bank. This includes carefully updating residency records. If a landlord had a lot of units, this would be no small task.
It’s also more convenient for your tenants. Most consumers are used to paying regular bills like credit cards and utilities online, why not their rent? With online rent payments, tenants can pay via eCheck (ACH), credit card, debit card, and money order. Most of these are available at a local convenience store.
When you’re using the old system (mail or in-person), it’s more difficult to keep an eye on everything. Holding everyone accountable will prove to be difficult, especially when there are a large number of units involved. With online rent payments, there is a digital paper trail.
Collecting rent is the operating income of owning rental properties. Any error could lead to a significant disruption of business. There are a number of these when dealing with handwritten records.
Most obvious are data entry errors. A tenant could accidentally write $1200 instead of $1250 on a check. Or they could transpose a number on the amount.
An accounting clerk could improperly code something or double-post an entry.
A landlord with dozens of units could overlook a tenant not paying.
A computerized system eliminates most errors.
Every check has bank information on it in the bottom left corner. By adopting online rent payments, a landlord helps prevent identity theft. The data is also safeguarded from unauthorized views. Many consumers are aware of the privacy risks in today’s society and will be happy to participate.
Make Better Decisions
Running a business requires accurate information. With online rent payments, your data will be more up-to-date and free of error. You can easily identify late payment frequencies. Many programs also have some type of analytics system.
Most online rent payment apps have an online portal that has other features. For example, you can use them for online maintenance requests. That prevents you from getting a call at 2 AM for a clogged toilet. This saves both time and hassle.
Online rent payment is a major innovation. There are numerous benefits for both sides, landlords should explore offering it to their tenants.