Have you ever rented and wondered why you had to mail or run your check to a drop box rather than just setting up something to automatically debit your account? Have you ever been late on rent because of it? If so, you’re not the only one.
Nowadays, property managers and management companies across the U.S. are using electronic payments in a variety of ways to bolster their business and maintain consistent cash flow. Most property managers can relate to the problems associated with delinquent payments. Growing adoption of electronic payments for property managers has helped alleviate some of these problems. Here’s how:
- Recurring billing schedules for rent: Probably the most common use of electronic payments for property managers is recurring billing. By requesting banking information from their tenants, they’re able to set up recurring billing schedules through receivables automation software that automatically deducts payments each month. This significantly decreases late payments due to forgetfulness, and allows property managers to better anticipate upcoming payments.
- One-time payments for deposits: Property managers can use electronic payments systems to collect deposits on-the-spot with one-time payment functionality. Instead of hassling with paper checks, the new tenant can simply pay via credit card or ACH and the property manager can expedite the process. It can all be done in unison with the tenant application process, in person or over the phone.
- Electronic invoicing for repairs: Often built in to the system used to process electronic payments for property managers is electronic invoicing functionality. Say, for example, there is carpet damage to a property upon termination of a lease. Through the same electronic system, property managers can invoice the former tenant, who they already have in their system, to cover the expense. The electronic invoice, delivered through email, can then be paid with a few clicks.
- Added payment options: Not all property managers using electronic payments accept credit cards, but it’s a great option for those equipped to do so. By offering more payment options, in addition to the direct bank transfers or ACH payments, property managers are eliminating excuses for delinquent payments. Offering credit card acceptance, even as a secondary option, can help property managers maintain consistent cash flow. And tenants love being able to add high-ticket purchases on their cards so they can reap the point rewards.
The evolution of payments has helped many industries, but electronic payments for property managers have proven to be especially beneficial. Since our homes are one of our biggest expenses, it’s no mystery as to why paying for them can be taxing. Property managers who make the process easier for their tenants can reap the rewards of timely payments and consistent cash flow.