Many of the pain points that landlords experience revolve around tenant communication and collecting rent on time. Whether it’s keeping your finances organized or having to remind tenants to pay rent, these challenges can add extra stress for rental property owners. Fortunately, online rent collection can help to alleviate that stress.
In fact, Americans pay more than half of their bills online. Why not give your tenants the same payment experience they've come to expect from other vendors?
Here are 5 reasons why landlords should start collecting rent online.
1. Online payments are faster and more convenient than checks
On average, checks take about 3-5 days to arrive by mail. Then, once a landlord receives the check, they have to deposit it in their bank, which can take up to 10 days to fully process.
Using an online rent collection platform, landlords can save themselves a trip to the bank — your rent payments arrive in your bank account on time, without you ever having to leave your couch.
2. Online rent collection tools have helpful features that paper checks lack
Online rent collection services can offer an array of payment options, so tenants can choose to pay rent with a debit card, credit card, bank transfer, and more. Tenants may also have an option to opt-in for scheduled payments, payment notifications, and late fee or security deposit collection.
With increased flexibility and helpful features, online rent collection tools can help both landlords and their tenants manage rent payments more efficiently.
3. Reduce the risk of late payments
A recent National Multifamily Housing Council survey revealed that while less than 20% of U.S. tenants currently pay rent via digital methods, 85% would prefer to do so if their landlords offered the option.
When tenants are given the flexibility to pay how they want, landlords will increase the chances of receiving rent on time and hassle-free. Tenants can even choose to schedule automatic rent payments, so they don't have to worry about remembering rent each month and can avoid late fees.
4. Increased transparency between tenants and landlords
It is necessary for a landlord and a tenant to have transparency with one another, especially when it comes to payments. Tenants can receive notifications via the rent collection platform that help them stay on top of due dates and fees – that means landlords no longer have to remind their tenants when payments are due. Landlords can also easily check all their tenants’ payment status in one place. It’s a win-win situation for both parties!
5. Increased security and privacy protection
A major concern with paying rent online is knowing that your private information will be kept private and that your transactions are secure. However, experts actually recommend online payments as a more secure option to paper checks. When mailing a check, tenants’ information could end up in the wrong hands, causing an unwanted mess for both renters and landlords. Online payment methods can help lower the risk of either party's information being stolen from a check.