For landlords, Community Association Managers (CAM), HOAs, and property management companies of any kind, finding additional payment channels that make the process of placing on-time monthly rent, dues and fee payments more attractive is an elusive, but quite effective way of improving the overall property management payment processing system..
The Basics of Arranging Rent Payment
In most cases, when a landlord arranges the amount of rent with his or her prospective tenant, the figures are in black and white. An amount is required each month on a certain date, and this will continue until the lease comes to an end. However, the modern rental market demands a little more flexibility, and offering something more appealing is a great way of attracting better long-term tenants to the property.
1. The Rent-Free Period
Although this isn’t always a viable option for every landlord, offering even just a single month as a rent-free period can offer a valuable incentive, especially in a tricky to rent or commercial property. By allowing residents to have their first month in the property without the extra burden of rent will not only make the property more appealing but will also increase the chances of receiving the remaining payments on time.
2. Gradual Rent Increases
Although increases in rent are bound to happen over time, the impact on tenants can be greatly reduced by implementing the increase gradually over a period. A slow approach encourages tenants to stay on your property, whereas adding a huge extra premium all at once to the monthly amount is likely to persuade tenants to look elsewhere for a place to live.
3. Fluctuating Rents
Although this is not a commonly seen option, in fact offering a fluctuating rent is a great way of persuading tenants to stay on your property. At particularly difficult times of the year, such as over the holiday season, offering a reduced rent for a month or two will improve tenant relations and will attract a better quality of tenant to your property.
More Convenient Payment Methods
Tenants who are faced with the possibility of only making a payment for their monthly rent in the form of cash or paper checks are more likely to look elsewhere rapidly for another place to live. Online payment portals are the best way to encourage quality tenants to your property since they allow the flexibility that tenants crave, with the potential to use a variety of popular payment methods, such as credit and debit cards or ACH payments, to cover their monthly rental cost. They can also access an online payment portal at any time of the day or night from the comfort of their home desktop PC or their mobile device while out and about, making it easier and quicker to pay the rent. That way, it doesn’t become an onerous and time-consuming task involving mailing checks, going to the bank, and finding the time to go to the post office or drop into the property management office.
The benefits of finding ways to make paying rent more attractive offer advantages to both tenants and landlords. And, while tenants benefit from the improved payment terms, property managers receive the benefit of more timely payments and increased revenue. BillingTree’s innovative property management payment processing systems facilitate more convenient payment options for tenants and guarantee landlords get their money on time and in full.