What are some benefits of online rent payments?
When rent payment procedures are easily understandable to tenants and simple to use, there is a greater likelihood that tenants will pay as agreed.
Online rent payments may offer a best practice solution to timely rent payment that benefits both landlord and tenant by a more efficient processing of rent payments. An important decision is whether to use an integrated portal (all-in-one) or a separate processing module. An all-in-one system can integrate core property management functions such as applicant processing, tenant screenings, deposits and fees, rent collection, payments history, maintenance requests, and landlord-tenant communications into a full service package that benefits landlords and tenants. Generally a stand-alone payment processing module is a basic accounting/reporting system that can deliver management reports, rent receipts, monthly tenant statements, payment history, past due reports, and rent reminder alerts on demand, helping to reduce administrative costs and provide real-time data for analysis and projections.
By choosing an online payment processing system a landlord can help reduce his operating expenses and help increase his property cash flow. In addition, many online rent payment systems offer the convenience of expanded customer services with 24/7 access to system options.
Some of the benefits of an online rent payment processing system include:
- A more efficient rent collection process
- Improved property cash flow by moving money more quickly into the landlord’s account
- Increased likelihood of full and timely rent payments
- Reduced administrative time and paperwork associated with processing in-house payments and collection duties for late, missed, or partial payments
- Tenants prefer to pay rent online
- More payment options such as credit card, debit card, bank transfer, other types of electronic payment services
- Convenient access for rent payment at any time or from any device
- Security of transaction
- Reduced risk of check fraud and theft including identity theft
- Ability to schedule recurring payments
- Co-tenants can synchronize payments for single rent payment to landlord
- Automatic notifications and reminders of rent due dates, account status
- Account access 24/7
- Reduce tenant late fees, missed payments
- Digital records for payment history and deposits
- Notification of new charges or fees
By reducing time and effort in the rent payment process, an online payment system can help reduce stress and improve the landlord-tenant relationship.