Your property and ability to rent it is your primary investment and income. Your ability to develop the asset and live the life you want depends on your ability to collect rent and collect it on time. Online rent collection allows you to protect your business. It enables tenants to make timely payments, partial payments and gives you the tools needed to enforce a late policy and ultimately keep your cash flow healthy.
As you continue to read, we will give you more information about online rent collection and how it can help protect your business.
Set Your Rent Collection Policy
Using a rent collection app, like PayRent, allows the landlord or property manager to set the policy that works best for the business.
Whether the policy is strict or flexible for tenants, the landlord is in charge. Setting up an online rent collection opportunity for your tenants will increase your control so you can protect the income and cash flow of your business.
Set Up Late Policy Enforcement
Regardless of the rental property’s state, each state will have limits and regulations on late fees.
Late fees must be explained in the lease or rental agreement to be legal and practical.
Once landlords explain the late fees, they can automatically use the PayRent app and online rent collection tool to assess late fees. Late fees are automatically calculated and take all the surprise out of the amount owed by renters. The landlord and their tenants will all know what amount is due and when. Landlords can run their business accordingly, and tenants can plan their cash flow better and be in a stronger position to pay on time.
Partial Payment Protection
Setting up partial rent payments should be part of the lease or rental agreement.
There are valid reasons for a tenant to want to make rent payments in two installments. For example, the payment schedule at their work makes the monthly payment difficult for them; a family crisis can arise, unforeseen medical bills, etc.
Setting up partial payment through PayRent allows automatic reconciliation of the payment in the system. In addition, tenants can see the amount of rent still due by looking on the app, so they’re reminded of their balance and payment date.
The online rent collection system takes the paperwork, calculations, and chasing tenants out of the equation to reduce landlord stress and protect their business.
Landlord Privacy Protection
For all businesses from retail to property ownership and management, the risks and rewards are similar.
The rewards are the successes, the profit, the excellent public identity in the marketplace, and revenue growth, to name a few.
The risks are losing money, earning a bad reputation, and even the potential of going out of business.
Not too long ago, tenants paid rent as direct payments to the landlord’s bank account. Remember when we gave bank account numbers, our addresses, and personal information freely? Then, it wasn’t unusual to let a tenant pay rent directly into landlords’ bank accounts.
Some landlords are still doing this. Are you? If so, stopping this as a business practice is highly encouraged.
When landlords give personal information such as bank account numbers, they risk fraud by tenants with less than honest intentions. In addition, these tenants will use the landlord’s data in ways that are not suitable for the “upside” of business.
Avoid Fraud with Online Rent Collection
Avoiding the risk of fraud is where online rent collection comes in very handy. For landlords, using online rent collection can reduce particular hazards, including fraud, and protect personal information and banking data while increasing their safety and security by preserving their privacy.