Although most industries have made the switch to taking online payments from their clients, very few rental property management companies and landlords have followed suits. This means they still require their tenants to bring or mail them a check each month to pay their rent. The problem here is that most millennials (many of whom are moving into the rental world for the first time) have never seen a check, let alone written one. They have grown up with and prefer using some form of online payment system.
There are several benefits to offering your tenants the ability to pay their rent online, including:
- Reducing the risk of NSF checks
- Reducing the number of late payments
- Faster payment processing times
- Making your accounts payable process far more streamlined
- Making it much easier for your tenants to pay their rent 24 hours a day, 7 days a week
The End of “The Checks in the Mail”
One of the most common excuses used by tenants who are late paying their rent is the good old fashioned “the checks in the mail”. While more than 5 percent of the mail never arrives at its destination, this excuse typically doesn’t wash and is more likely to be a way for your tenant to squeeze a few extra days in before they have to pay the rent and to avoid late fees.
When you have a tenant payment portal set up, your tenants can pay their rent at any time night or day, 24 hours a day, 7 days a week, even on holidays. If they are late with a payment, the late fee will already have been applied, requiring them to pay it along with their rent.
You Don’t Have to Pay to Accept Credit Cards, Debit Cards, and More
Once you set up an online payment system, you will be able to take payments via credit/debit cards, electronic checks, ACH payments, consumer checks, even money orders without any extra cost to you. This lets your renters choose a method of payment that is convenient for them. It also makes it possible for them to establish a monthly recurring payment that ensures you get paid on time every month.
Another advantage to using an online payment portal is that your renters pay a modest fee for using the service rather than your having to pay the fees. You will find that most people are already used to paying this type of fee and won’t complain about the cost of making it easier for them to pay their rent.
No matter how you look at it, taking the time to set up an online payment portal for your tenants to use will save you and your staff a significant amount of time and effort. At the same time doing so is a great way to ensure the vast majority of your rent payments are made on time and that any late fees are automatically added to the payment. Why wait, it truly is time to step into the 21st century and put modern technology to work for you.