Collecting rent or, in commercial real estate terms, lease income, can be a time-consuming and error-prone process for landlords and property managers. Late payments, manual tracking, and reconciling accounts take up valuable time that could be spent growing your portfolio or managing properties more effectively. Thankfully, using ACH Rent Payments With STRATAFOLIO can help to automate rent collection streamlines these procedures, guarantees on-time payments, and gives you complete visibility into your lease revenue streams.
While STRATAFOLIO handles ACH rent collection from end to end, it also syncs seamlessly with QuickBooks. This gives landlords a complete, automated rent collection workflow, from receiving ACH payments to updating accounting records, all without double entry.
Why Automate Rent Collection?
- Time-Saving Benefits
Manual rent collection involves sending invoices, following up with tenants, and reconciling accounts; tasks that quickly pile up for landlords with rental properties. Automated rent collection systems save time by automating recurring payments and reminders. With STRATAFOLIO, you can manage all of your tenants, leases, and payments on our platform to reduce administrative burdens.
- Reducing Late or Missed Payments
Late payments disrupt cash flow and cause unnecessary stress. With ACH automations for rent payments through STRATAFOLIO, tenants can schedule transfers from their bank accounts on a recurring basis, making on-time payments easy and minimizing missed or late collections.
- Better Cash Flow Management
Consistent, on-time payments make it easier to manage expenses and plan for future property investments. Using STRATAFOLIO’s reporting and tracking tools, landlords gain full visibility into lease revenue streams, reducing surprises and improving financial forecasting.
Automation becomes even more powerful when ACH rent collection connects directly to your accounting software. STRATAFOLIO integrates with QuickBooks, so rent payments flow straight into your books, improving accuracy and eliminating manual updates.
Understanding ACH Rent Payments
ACH, or Automated Clearing House, is a network that allows money to move electronically between bank accounts. For commercial landlords, this means tenants can pay rent directly from their checking or savings accounts. ACH transfers are secure, reliable, and typically faster than traditional payment methods.
Why ACH Is Ideal for Rent Collection
ACH is particularly suited to commercial rent collection because it offers the following:
- Lower fees as compared to credit cards: the landlord saves on processing costs.
- Direct transfers to landlord accounts: Payments go straight into your bank account without intermediaries.
- Resurring capability: The recurring capability allows a tenant to provide permission authorizing automatic monthly rent.
By using ACH for landlords through STRATAFOLIO, property managers can simplify rent collection and improve financial accuracy.
Overview of STRATAFOLIO’s ACH Rent Collection
STRATAFOLIO is a commercial property management platform with an integrated ACH-based rent collection system. Unlike third-party rent payment processors, STRATAFOLIO handles the entire workflow right within your CRE management platform. Lease revenue automation cannot get any more straightforward.
Features That Support Rent Collection
Key features of STRATAFOLIO’s ACH system make rent collection simple and stress-free:
- Effective invoicing: Set up rent invoices and let STRATAFOLIO handle the rest.
- Scheduled recurring payments: Tenants can easily set up automatic monthly ACH transfers, so payments come in like clockwork.
- Real-time payment tracking: See who’s paid, who’s late, and what’s pending.
- Seamless accounting integration: Your payments flow directly into your accounting system, keeping your reports clean and up to date.
With STRATAFOLIO’s rent collection software, landlords can reduce administrative work, improve accuracy, and save time.
Step-by-Step Guide to Automating Rent Collection with ACH and STRATAFOLIO
- Enable ACH in STRATAFOLIO
Start by turning on the ACH payment feature in your STRATAFOLIO account. Make sure your property details are up to date, and your bank account is securely linked so payments can flow without any hiccups.
- Adding Bank Details Securely
Landlords input their bank information into STRATAFOLIO once, and all tenant payments will deposit directly into this account. Security protocols ensure your data and funds are protected.
- Creating and Scheduling Recurring Invoices
Generate invoices for each tenant or lease agreement and schedule them to recur automatically each month. STRATAFOLIO sends these invoices directly to tenants, reducing follow-ups.
- How Tenants Set Up ACH Payments
Tenants can easily enter their bank details in the STRATAFOLIO portal and set up recurring ACH payments.
- Tracking and Managing Payments
STRATAFOLIO offers dashboards to monitor payment status, view completed transactions, and follow up on failed or late payments. You can also generate reports on lease revenue for better cash flow planning and accounting purposes.
- Syncing Your ACH Payments With QuickBooks
Once ACH rent collection is active in STRATAFOLIO, payments automatically sync to QuickBooks. This keeps your financial statements accurate and ensures rent revenue is reflected correctly across all entities and properties.
Best Practices for Automated Rent Collection
- Communicate Clearly with Tenants: To reduce misunderstandings and late payments, clearly explain ACH options, schedules, and deadlines.
- Provide a Variety of Payment Options: Although ACH is the preferred method, tenant preferences may be accommodated by providing other digital payment options.
- Adhere to Local Rental Laws: Make sure your automated procedures abide by rules pertaining to commercial real estate.
- Maintain Accounting Organization: To ensure accuracy and transparency, routinely reconcile payments and examine reports.
Make sure STRATAFOLIO and QuickBooks stay synced so your ACH rent collections appear accurately in your books. Regular syncing helps avoid discrepancies at month-end.
Pros and Cons of Using ACH via STRATAFOLIO
Pros
- Convenience: Set it and forget it; payments process automatically.
- Cost-effective: Lower fees than credit card payments.
- Integration: Payment data can sync with accounting systems for clean bookkeeping.
Cons
- Setup can take a little time: Getting everything configured the first time may require a bit of patience, especially if you’re new to automation tools.
- Some tenants may need help: Not everyone is comfortable with online banking, so a few tenants might need guidance when setting up ACH.
Conclusion
With STRATAFOLIO’s ACH rent collection and seamless QuickBooks integration, landlords get the best of both worlds: automated payments and clean, accurate accounting. Schedule your personalized demo with STRATAFOLIO to learn more.
