According to the latest Digital 2019 Report from Hootsuite, we currently spend a daily average of 6 hours and 42 minutes online. We can do just about everything via the internet, including order products and services, schedule doctor appointments, book airline tickets, and stream our favorite tv shows. It’s no secret that our generation is constantly looking for ways to get things done quicker and more efficiently, and this includes paying our bills (specifically, our rent).
Online rent payments have become increasingly popular over the last decade, and more and more property managers are adapting technology and scrapping the paper checks. Collecting rent online is more convenient, efficient, and cuts down on trips to the bank.
Read on to see 5 benefits of using online rent payments that you might not have considered.
Residents prefer to pay rent online
Unsurprisingly, young residents are already familiar with paying their bills online. Residents under the age of 35 are well-versed in the benefits of paying their bills electronically. Because of this, writing paper checks for their rent will feel like a slow and burdensome process. Residents are already paying their other bills online, so why not pay rent online too?
Landlords also undoubtedly prefer online payments, mainly because of how much faster they receive their payments. The online transfer of money is much more streamlined than when checks are physically being mailed, ensuring that you get your money faster and more securely.
Simply put, collecting rent online equals stress-free automated payments, increased security, and less paperwork.
Your customer service will improve
Giving your residents access to online payments typically means you are also giving them access to their account details, including current charges and previous payments. This transparency into their payment history will build trust between you and your resident and make payment disputes less likely. Both you and your resident will be able to see exactly how much they paid and the date that they made the payment on.
Additionally, with less time being devoted to collecting and processing rent checks, you can focus on other things like building better relationships with your residents.
Decreases late rent payments
One of the greatest perks of online rent tools is that they give you the option to send automated notifications to your residents to remind them when rent is due. ClickNotices offers automated services (link to the services page) through our technology platform. These reminders are a great way to help ensure residents get their money in on time, since there is less chance of them forgetting that a payment is due.
Even if payments are not automated, online payments are still more likely to occur regularly because of how easy it is to complete them. Residents may have more of an incentive to get their payments in on time when they can do it from their couch instead of having to drop off a check in the mail or at your office.
It’s important for you as a property manager to get your payments consistently and on-time. Online payments are the best way for this to happen.
More secure way to transfer payment
Online payments are more secure because they cut down on the risks that come with dealing with large amounts of cash. It eliminates the risk of their check being stolen or lost and having their banking information fall in the hands of the wrong person.
If you have a resident who is cautious about using online payments, you can assure them that their information will be safe. Using a strong password for your account is also a precaution they can take that can give them an extra level of security.
Streamlines the payment process
Collecting rent online is more reliable than taking your resident’s word when they say that they mailed their check in on-time. You will have a digital record of exactly when the resident submitted their payment as well as status updates in real time. While getting the money into your account still isn’t instant, it is much faster than collecting checks, taking them to the bank, and waiting for them to clear. Online payments are typically processed within 2-4 days.
There will always be renters who prefer to write checks and hand-deliver them to their rightful owner, but current banking behavior suggests that people are more comfortable with digital transactions. Allowing residents to pay online will save them time, reduce stress, and create trust with you. As a property manager you will benefit by knowing when to expect your money, reduce repetitive communication with residents, and increase your chances of getting money on time and consistently. The benefits of paying rent online are clear.
If you don’t currently use an online banking system for your rent payments, it may be time to make the switch.