Most landlords have renters pay their rent online. For renters, paying online is a faster way compared to writing a check or obtaining a money order. But why do landlords prefer to use online payments instead of other methods? Read on to learn about how online payments benefit the landlord.
Online Payments Save Time
When landlords do not collect rent online, it is a time-consuming process. You must collect the payments, go to the bank to make the deposits, and update your bookkeeping. If you have more than one rental property, you must do this process several times. Checks take time to clear and funds are not available immediately.
Online payments are simple and significantly cut down the physical time spent collecting rent. Online payments are usually deposited instantly. By decreasing time spent bookkeeping and running to the bank, you have more time to complete property management tasks. In addition to management tasks, you have more time available for tenant acquisition and researching new properties to increase cash flow.
Decreases Errors in Bookkeeping
Bookkeeping is time-consuming and makes it difficult to track payments easily. Bookkeeping mistakes can lead to missing late fees and tenant deposits. Online payment services make it easier to track payments from your tenants. Some of the common mistakes of bookkeeping you avoid when using online rent payments include:
- Forgetting to track payments
- Not balancing the spreadsheet properly
Online payment tools reduce the likelihood of mistakes through automation. Mistakes do happen, but reoccurring, frequent mistakes can create a long-lasting mistrust with your tenants.
Online Payments Save Money
Not only does switching to online rent payments save you time, but it also saves you money. Bookkeeping costs increase due to processing costs and hiring someone to manage your bookkeeping for you. Online payments eliminate these costs through automation.
Enhances Communication with Tenants
Integrating online payment tools into rental properties help increase transparency and communication with tenants. When making a rent payment online, tenants see their payment history and any additional fees. Instead of finding time to deliver the rent money, they make their payment any time before the due date. Since tenants can see their payment history and fees, it builds trust because they have all the information at hand.
Decreases Late Rent Payments
The integration of online payments is phasing out older payment methods like checks and money orders to pay rent. Today’s tenants are more familiar with paying online for just about everything they want. Using online payment systems allows tenants to set up reoccurring payments for their rent. This reduces the number of late payments made by tenants. Some online payment systems, like STRATAFOLIO, send reminders when rent is almost due. Reminders help remind busy or forgetful tenants to pay their rent before having fees.
Many landlords have integrated online rent payments, and it makes you more competitive as a landlord. If you need to integrate online payments for your rental property, STRATAFOLIO can help. STRATAFOLIO includes online payment management, maintenance requests, and many other management tasks. Schedule a 1:1 demo today to see how STRATAFOLIO helps manage your properties.