In the beginning of 2021, around 20% of tenants fell behind on their rent. While anyone can fall behind on their rent, your rental property business relies on collecting every dollar your tenants owe.
How can you improve your rent collection system? One option is by creating an online rent collection system.
If you offer an online payment system that your tenants can use, you more collect more rent, and you might collect it on time. Here is a guide to help you learn more about the benefits of offering this type of system.
Paying Electronically Is Simple
One of the top online rent collection benefits is the simplicity it offers to you and your tenants. If your tenants can't pay online, what options do they have?
They might have to walk a check down to the drop box at your office or write a check and mail it. They might have to go to the bank to cash a check to give you cash for the rent.
No matter how you look at it, offering a way for them to pay online is the simplest way they can pay their rent each month.
Your Tenants Can Set Up Automatic Payments
Another one of the many online rent collection advantages is your tenants can set up automatic payments.
Online rent collection companies offer the option of setting up recurring payments. If your tenants set this up, their rent will come out of their bank accounts automatically each and every month.
When tenants set this up, they benefit, and so do you. There are many benefits of automating monthly payments, including never having to pay a late fee again.
You'll Receive More Rental Income
When you offer easier ways for your tenants to pay their rent, they might pay on time every month. As a result, you'll probably receive more rental income.
Imagine if you collected 100% of all the money your tenants owed each month. Your business would likely have fewer cashflow problems, and your business might become a lot more profitable.
An Online Rent Collection System Reduces Your Workload
Among all the online rent collection tips you can find, choosing to offer online payment options for your tenants is probably one of the best options.
You can read through an online rent collection guide to learn more about your options, if you're interested.
One key thing to consider is the stress that an online payment system could potentially lift off your shoulders. If you don't have to worry about going to your tenant's units to collect rent, you'll have less to do.
If you no longer have to send out letters to tenants who pay late, you'll have less on your list of things to do. You can even hire a property management company to help you set up an effective online rent collection system.
Contact a Property Management Firm for Help
Offering an online rent collection is beneficial for you and your tenants. Are you ready to create one?
If you need help with this task or other tasks you must do for your business, contact us. We offer property management services and can help you choose the right services.