Whether you are a landlord or community association manager working for a property management company, the foundation of your revenue comes from rental income. However, when it comes to property management rent collection, there can be a number of challenges to face. Despite late fees and lease agreements, many tenants these days struggle to make payments on time. So, how can you facilitate a timely payment? And, which methods should you avoid to make sure you make things easy for your tenants?
Payment Forms That Are Best Avoided
Although checks have long been the method of choice for landlords and property management companies, these days they have definitely fallen out of fashion. While most landlords still accept checks, most Millennials do not even have a checkbook. So, if you are planning on renting property to students, this could be an issue. Also, of course, just because you receive a check doesn’t actually mean it can be cashed. If your tenant has a negative bank balance, the check will bounce, and you will not get your payment.
It seems very obvious why cash rent payments are a bad idea. Cash can easily be lost and is difficult to trace. Also, cash payments mean that tenants and landlords have to meet in person and that can be inconvenient for both parties concerned. Although some tenants might prefer cash payments, the fact that it will only show on a bank statement as a withdrawal means that it cannot be attributed clearly to rent payments.
While a bank draft is a secure way of paying rent, it is often unrealistic to expect tenants to use this form of payment since a fee is usually required to draw them up and tenants have to visit their bank in order to get one issued. In the same vein, money orders are also an inconvenient option since they require tenants to repeatedly go out to get one on a monthly basis.
Making the Right Choice of Payment Method
Making an online payment is often the most convenient option, not just for tenants, but for landlords as well. An online payment portal means that tenants can access the system 24 hours a day, seven days a week, regardless of where they happen to be. There is no need for tenants to go to a bank to obtain a cashier’s check, and no need to put a check in the mail. Instead, they can use their preferred credit card or make an ACH payment, thus guaranteeing that their rent is paid on time.
BillingTree’s property management rent collection solution is convenient, easy to use and, above all else, PCI-, SSAE-16-, and HIPAA-certified so tenants can feel confident that their payment details will be kept safe and secure. This makes it an excellent choice for property managers who are looking for an innovative and forward-thinking way of collecting tenant payments.
Although accepting the right kind of payment as a property manager may appear to be a tiny detail, it is a vital one. This is especially true if you manage a number of properties. Establishing one payment method could be the easiest way of tracking all your incoming payments. By keeping tenants satisfied and by accommodating their payment needs, you are much more likely to keep your revenue coming in on time, and by adopting a convenient online property management rent collection system, you can foster positive interactions between you and your tenants.