We live in an age where carrying cash is uncommon, and writing checks is passe. That’s not to say that as a landlord, you can’t collect rent every month this way. However, many of your tenants under forty are not likely to hand you cash or write you a check. They would prefer to pay you electronically. If you are older than most of your tenants and unable to accept digital payments for rent, it’s time you upgrade your payment options. There are several benefits for both tenants and landlords when it comes to collecting rent electronically.
You Can Send Email Reminders to All of Your Tenants a Few Days in Advance of the Rent Due
When you finally choose to offer electronic rent payment options, you can also gain the ability to send email reminders to your tenants a couple of days before the rent is due. If a tenant is late, you can send another reminder with the additional mention of consequences for late rent payments. The whole process of collecting rent electronically and reminding tenants without having to try to reach them by phone is more convenient.
Tenants Can Create an Online Payment Account Through Your Chosen Electronic Payment Platform
When you choose an electronic payment platform like PayRent, tenants can create a secure online account that allows them to pay their rent with their bank account or a credit card. Payments typically reach your account within 2-5 business days. Your tenants can also pay ahead of schedule, or make back payments if needed and approved by you.
Tenants Can Choose to Set up Automatic Rent Payments
Some rent collection platforms allow your tenants to submit automatic rent payments. If you have tenants that have a very steady income, this may be a good option for you. When they choose this option, their rent is automatically pulled from an assigned account on the first of the month and sent to you. If they want, they can add more than one payment option if they need to use a credit card for rent one month and ACH transfer the next. They will need to log into their account to choose which form of payment they want the automatic payment pulled from, but then they can go about their business and not have to think about paying the rent on time.
Track Offline Payments as Well
Sometimes you may receive a rent payment, a partial or full amount, directly from a tenant. If that’s the case, you can still track the payments made via your landlord account on an electronic rent collection site. There are additional tools available to landlords to keep track of all properties and rent monies owed and collected each month.
Collecting Rent Electronically Almost Turns the Business into a Turnkey Operation
Previously, you had to sit and wait at home for rent payments from your tenants to show up in your mailbox or personally make the rounds to collect payments on the first and second of each month. When you receive electronic rent payments, you’ll receive a notification each time your tenant initiates a payment, and funds are deposited directly to your bank account. You can track and check off tenants that have paid. If you have unpaid rent, you can continue with email reminders or make house calls to collect the rent.