Property management is a very in-demand service. Management companies deal directly with prospects and tenants, saving you time and worry over collecting rent, handling maintenance and repair issues, responding to tenant complaints and even pursuing evictions. Property managers can be responsible for managing single-family residences, multi-unit apartment buildings, commercial buildings, office and retail space within a shopping center or strip mall and even entire shopping centers.
Property managers handle a lot of money and must be accurate to the penny. Managers typically do the following:
- Collect monthly rent from tenants, including extra-percentage overages based on retail sales.
- Collect monthly fees from tenants including late fees.
- Arrange for repairs or maintenance as needed to keep up the property.
- Pay or delegate paying of bills, such as mortgage, taxes, insurance and cleaning
- Contract for trash removal, swimming pool maintenance, landscaping, security and other services
- Above all, keep accurate detailed records of rental activity
Property management is also a very tightly-regulated business and property managers must keep very detailed financial records on each client or tenant in order to satisfy IRS regulations and reporting.
One of the most obvious business functions of a property manager is to collect rents and fees. According to the National Property Management Association, the majority of rents are still paid with paper checks. Now while tenants submitting paper checks for rent clearly continues to remain the predominant method of payment, there are clear advantages to setting up online payments through virtual terminals for both the management company and the clients.. The addition of electronic payments can reduce transaction steps, all while increasing speed and security at the same time.
- Since virtual terminals have almost immediate payment verification; records are updated immediately. This is especially good for the clients who want confirmation.
- Tracking of payments is easier for the management company; partial payments, late fees and sales-based percentages are recorded immediately and matched to accounts.
- There is more accurate matching of payments and accounts for fraud prevention.
- Electronic payments save time in preparing for audits, including compliance. It is faster to locate specific electronic transactions than it is to dig through boxes of paper receipts.
The easiest way to encourage consumers to stop using paper checks and switch to electronic payments is to make it as easy as possible for them to do so. Give them the option to pay through online portals and virtual terminals. Show them the advantages of immediate acknowledgement of payment and electronic records. By demonstrating the ease and security of their payments, the chances of collecting rents and fees increases significantly for the property manager as well as making life easier for the tenants.
In addition, online payments by cards, whether debit or credit, have become a way of life for consumers in the modern economy. Many consumers do not even write checks anymore because they find it to be a bother. Moving those clients to online payments is an advantage to them as it saves them the time as well as fits more into their lifestyle.
Time savings for the property manager
Consider the time savings and record-keeping advantages that can accrue to a management company that manages primarily multi-unit apartment buildings or multi-unit shopping centers. Processing hundreds of monthly rent payments by paper checks invites possible inaccurate record-keeping just based on the volume of checks that must be processed. Moving tenants to an online method of payment will relieve the agents of the check processing and instead be involved with other critical areas of business.
Technology Improves Processes
BillingTree’s Payrazr Marketplace offers a robust suite of electronic payment solutions that can enhance the efficiency ofthe entire management process, while also adding the assurance that all of your payments arecompliant with industry regulations:
Payrazr Gateways offer the flexibility, integrations and reporting required to succeed in today’s economy. By offering various payment gateways, BillingTree is sure to have the right fit for your business needs.
Payrazr virtual terminals are web alternatives to physical credit card terminal or Point-of-Sale (POS) machines. They are software applications hosted online and can be accessed from any internet connected web-browser. A virtual terminal permits entering a customer’s credit card information directly into a web-based payment form, which is used to process an electronic transaction.
Branded portals enable businesses to securely accept credit, debit, eCheck and ACH payments and can store invoices, manage customer accounts and payment history. With a broad offering from simple web payment forms up to full featured with archived invoicing and payment history, the Payrazr portal offerings have your web payment needs covered.
So if your tenants are still paying their rents and fees with checks, give thought to finding ways to move them onto electronic payments. The advantages for both of you make it well worth the effort.