Real estate investors and property managers are all familiar with the frustration of tenants who never seem to pay their rent on time, which can throw your positive cash flow out-of-whack. Even when tenants pay the rent in full over the course of a month (making payments each week), the use of technology like mobile and online payments can add a sense of security for an owner. Knowing that it is easy for your tenants to pay can reduce the stress of having to stay on top of those payments through the month.
With modern technology, it just doesn’t make sense for owners not to take advantage of the growing online and mobile payment avenue.
Why Investors & Managers Should Consider Online Rent Payment
They’re Probably Already Making Online Payments
Even if people don’t think of themselves as mobile bankers, a growing number of people are paying for things online and turning to online banking. Whether it’s Amazon, paying down credit cards or renting movies, online payments are just a part of life for many people — and paying rent can just be another part of that.
The Added Value of Convenience
Online payments are simple. They generally require a one-time entry of credit card information or syncing of a bank account. No more writing checks and fooling with physical envelopes and postage. It’s all right at the touch of a keyboard. The more convenient you make paying for your tenants, the more likely they are to pay them. Even if they don’t opt to use mobile payments, it’s an added value for your tenants, period.
It’s Easier to Keep Track Of
Both for managers and tenants, electronic information is a lot harder to lose track of. With e-mail reminders and electronic statements, payments don’t get lost beneath piles of papers and stacks of bills. It cuts out a lot of extra steps and clutter. Not to mention tenants can check their charges at any time, making money management that much simpler. Real estate investors can also enjoy the advantage of having payments deposited directly to their bank accounts, which keeps positive cash flow consistent and quick.
Late Payments Are Less Likely
With many online and mobile payment platforms, recurring payments can be scheduled and made automatically. It eliminates both the need for late reminders and keeps tenants from having to worry about forgetting to pay until the last minute (or after it). Mobile payments also mean that being away from home is no barrier to paying the bills — they can be paid from anywhere, at any time, without relying on location, hours of operation or the postal service.
Where to Start
There are many platforms available to property managers to handle rent online. These are just a few such tools and software for all rent management needs:
We are continuing to explore various options for online and mobile payments. The percentage of renters in our 3,000 home portfolio using these payments is still small, however, in Texas we have made a push to start tenants in this process and have a higher percentage of renters using these methods. Be sure and let us know in the comments if you are using any of these methods for collecting rent on your properties and how it works for you!
Do you offer online payment options for your tenants? Let us know in the comments.