About 82% of Americans are now using online payments. Daily work management is increasingly being done online thanks to ongoing technological advancements. And rent collection has not been left behind.
As a landlord, several factors could make using an online billing service advantageous for you, but there are also drawbacks. Online rent collection is a fantastic way to safeguard both yourself and your investment from elements like safety, security, and documentation.
Learn more about the pros and cons of online rent collection for property owners below:
Pros of Online Rent Collection
Want to make your rent collection fast and easy? Investing in an online collection system may be the way to go. Here are more advantages you should consider:
Cut Back on Late Payments
The main advantage of online rent collecting is that you will get fewer late or missed rent payments thanks to the simplicity and convenience of use. Tenants are less prone to forget about their rent because they can now set up a scheduled monthly payment.
Saves Time
Collecting rent the traditional way can be a lengthy and daunting process. It’s involves collecting checks, preparing deposit slips, posting receipts, updating your bookkeeping, and so much more. But this shouldn’t be the case.
By accepting online rent payments, funds are directly deposited in your account. This means that the steps you had to go through in the traditional way are completely eliminated. You will now have more time to grow your business in other ways.
More Practical and Better User Experience
The process of online rent collection is more practical than traditional form of payment. It enhances tenant relationships since you are not chasing payments. As a result, it enables you time to focus on improving customer service, property, maintenance, and advertising vacancies.
Fast and Safe
Most payments made with ACH can take as many as five days. Online platforms, on the other hand, are almost immediate. They are also considerably safer since you don’t have to give your banking credentials – unlike direct deposits.
Reduced Errors
There is no possibility of entering a payment incorrectly with a digital rent portal combined with automatic reconciliation, eliminating expensive and time-consuming accounting irregularities.
Cons of Online Rent Collection
Paying through the online rent portal may also come with some challenges. When transitioning, be on the look out for the issues below.
Partial Payments
Some platforms may allow tenants to make partial payments. Since this will be perceived that you have received a rent payment, it could halt any eviction processes that may be underway.
Payment Challenges and Chargebacks
Often, if there is a question about a charge on the tenant portal, payment processors frequently take the customer's side. Ensure you have laid out all the costs as well as the terms and conditions, before accepting a tenant.
Costs and Restrictions
There can be different costs or transfer restrictions based on the platform you use. Additionally, in some jurisdictions you may not be allowed to recover the amount from the tenant through a convenience fee.
Final Word: Is Online Rent Collection for You?
The pros certainly outweigh the cons of online rent collection. These online platforms make collecting rent a safe, fast, and error-free process. As a result, you can make the best business decisions for your tenants and your investment.
Get in touch to learn more about online rent collection.
