7 Benefits of Having Your Tenants Pay Rent Online

By Kailey Walters on October 7, 2020

Living in an increasingly digital world means that it’s only becoming more convenient now to have your tenants pay rent online. In fact, an online payment system can benefit both you and your residents in the long term. Read on to find out how.

via Pexels

1. It saves time and money.

If you manually collect rent every month as a property manager, you could be wasting a lot of precious time. After all, manually collecting rent entails a long process — you have to prepare deposit slips and travel to the bank to deposit funds, and after the check clears, you need to spend still more time manually posting receipts and updating resident records. Instead of using up all that time and energy, you should turn to online payments — which can even help reduce operating expenses. If you use a cloud-based payment system, for example, your tenants can pay their rent via a variety of options, including electronic check, debit card, credit card, or cash or money order at CVS or 7-11.

2. It eliminates errors that could be made through manual auditing and editing.

If you’re using a paper-based record-keeping system, you’re bound to make mistakes once in a while. However, using an online system can help prevent common accounting errors, data entry errors, and improper coding transactions, which will make the rent payment process a lot more efficient and less frustrating.

3. It streamlines communication.

Online rent payments make communication for both you and your tenants more efficient. Through an online system, tenants will be able to access their payment history, review fees, and assessments as well as modify payment choices any time they want. As a result, they won’t have to waste time their time or your time trying to find out this information. What’s more, you as a property manager will be able to streamline automated communication features such as by sending text and email notifications when rent is due. In this manner, online rent payments are a win-win for both you and your residents.

4. It protects tenant privacy and identity.

An online rent payment service is more secure than a manual process. Tenants will be able to make payments online knowing that their identity is secure, especially because they don’t have to worry about their checks getting stolen or lost in the mail. Meanwhile, you as the property manager can rest assured knowing that your tenants’ data is protected from unauthorized views.

5. It makes things convenient for tenants.

Many people tend to be forgetful, especially if they have a lot of things going on at once. What with all the different bills that people have to pay, it’s no wonder that tenants sometimes forget to pay their rent. Sometimes, it can be helpful for tenants to organize their bill payments by writing important dates down and keeping a consistent schedule. However, if they have the option of paying online, they can set up recurring payments to ensure that their rent payment is automatically deducted from their bank account each month. That way, they don’t have to make an extra effort to remember, and you as the property manager don’t have to continually remind them. What’s more, online payments allow tenants to pay from anywhere at any time — they can simply log onto the system from either their phone or computer no matter where they are, which means they don’t have to go out of their way specifically to make a payment.

6. You will see fewer late payments.

One of the major perks for you as a property manager — stemming from the increased ease with which residents can pay their rent online — is that you’ll see a decrease in late payments. Since your tenants will be able to enjoy a more convenient and streamlined rent payment process, along with helpful reminder notifications in the form of texts and emails, they’ll be more likely to pay their rent on time than before you went digital. As a result, you’ll probably be seeing fewer late payments, which is always something to celebrate.

7. It improves tenant satisfaction.

A renter’s survey conducted by AppFolio reports that 86% of respondents said it was important for them to be able to pay rent using mobile devices, while about 27% of respondents said they wouldn’t rent or would even move out if their property manager didn’t offer online tools. These results show that offering an option for online rent payment can be really helpful in attracting more prospects, retaining residents, and improving their overall satisfaction.

Online rent payments can be super beneficial for both you and your residents, providing a number of advantages that will make the rent payment process so much more convenient and efficient.

By Kailey Walters

Uloop Writer
Stony Brook University

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