Tenants pay rent on time is the single most important aspect of running your landlord business. Collecting rent online is becoming increasingly popular as contact less payments become the new norm. Learn why you should consider online rent payments and how to collect rent online.
Types of Ways to Collect Rent Online
You might be asking, what’s the best way to collect rent online? While there are several rent payment options landlords have used for decades, as the property management business becomes more virtual and distant, switching to online options makes sense. However, with many apps and programs out there, it’s important to determine what will work best for you and your business. Here are the most common ways to collect rent online:
1: Online Property Management Software:
If you already use property management software to run your rental business, then it makes sense to also collect your rent through the same platform. Rent payments through this way are often extremely easy – both you and your tenant will only have to set up the process once and from there you can set up automatic payments.
Additionally, collecting rent through property management software is secure, fast, and there is no handling of cash or checks – the money will be directly deposited into your account.
2: Money Transfer Apps:
Another common method many people use is a money transfer platform, such as Venmo, CashApp, PayPal, or GoogleWallet. These apps are linked to bank accounts or debit cards and are popular among younger renters.
Utilizing platforms to accept rent payments online can provide real-time notifications when the money transfer is successfully deposited in your account. This allows for greater visibility of the rent transaction status across multiple properties, and increases the accountability of your tenants.
Online Payments Help Avoid Late Rent & Fees
If you want an easy process that is not only ideal for your business, but also easy for your renters, collecting rent through a property management system is your best bet. Having a system where everything is in one place for your rental property business will ensure you are organized and efficient. Here are some of the perks of using an online rent payment system:
Secure and reliable
You can collect additional payments such as security deposits and late fees
Automatic reminders to tenants
Easier for tenants
Free for landlords and free for tenants if they opt for ACH payments (bank transfer) – paying with a debit/credit card will include a processing fee
No contact or collection necessary
How Online Rent Payments Work
Online rent payments are also easy for your tenants. The only steps they will have to take are to set up their payment information securely and choose if they want to pay for their rent via bank transfer (ACH), debit card or credit card. Tenants can easily pay with one click either on their laptops or phones and receive reminders if they have unpaid charges.
Overall, switching to online rent payments will enhance your rental business for the better. It will save you time, worry, and avoid late fees for tenants. Online tools have allowed the rental process to ultimately become completely virtual and collecting rent online is another easy step that will contribute to your success as a virtual landlord. Start collecting rent online today!