Collecting rent online is landlords’ biggest step toward digital rental management. Regular rent payments are your livelihood. Therefore, the way you collect rent should be trustworthy and reliable.
As online rent collection increases in popularity, you may wonder whether digital payment portals are the reliable system you need.
With a variety of property management software platforms to choose from, many landlords would answer yes to that question. Tenants also appreciate online rent collection, and many now expect to be able to submit payments online.
You may have heard some myths about online rent payments or cloud-based property management software, including concerns about cloud-based security and reliability. However, if you are informed about online rent collection, this tool can offer exceptional efficiency and security for your rental business.
Here are a few things to know about online rent payments and how they operate on property management software.
Security
Security is a frequent qualm about online rent collection. If property management software platforms are cloud-based, how do you know that your data is safe on the internet?
If you’re thinking about data security on property management software, know that property management software developers have also considered security. With modern encryption, your data is encoded and safe from digital predators.
In many ways, cloud-based data storage is much safer than local storage. Unlike your hard drive, cloud-based data cannot be misplaced, lost, stolen, or physically damaged. If you’ve ever lost or broken your computer, you know how frustrating it can be to restore your files.
Instead, cloud-based property management software keeps your data safe, well protected, and more easily accessible to you.
Automated Records
Another benefit of online rent collection is that it automatically generates payment records.
Each time a tenant makes a payment, the software records the amount, date/time, payment method, and other relevant details in a leger. When you or your tenants want to view payment history, you can conveniently do so directly from your property management software account.
Automated records also help you enforce lease agreements. If any questions arise about whether tenants have submitted payments, you already have a record that you know is accurate. It’s impossible to “misplace” payments or forget to record them.
Late Fee Infrastructure
Another aspect you might have questions about is late fee infrastructure. Are property management software platforms largely inflexible, or can you enforce your current late fee policies the way you’re accustomed to?
On many property management software platforms, late fee infrastructure is indeed very flexible and adaptable. On these platforms, you can customize late fee types and amounts, indicate grace periods, and manually override late fees when necessary.
Property management software is also excellent at managing communication regarding payments and late fees. Your software can send automated rent reminders or late fee warnings to the tenants that need them. No one likes spam, so property management software is designed to deliver messages to only the recipients they apply to.
AutoPay
Finally, be aware of and encourage your tenants to use AutoPay. With the AutoPay feature, tenants can set up reoccurring payments. Their funds will be withdrawn from a designated bank account or credit card on the date scheduled every month.
AutoPay benefits both you and your tenants. You don’t have to worry about rent being late, while tenants can rest easy knowing they won’t be charged late fees for accidental slip-ups.
However, with AutoPay, there is a possibility of bounced payments. If a tenant uses their credit card to pay rent but doesn’t have the funds to pay their bill, it could be several days or longer before you or the tenant realizes.
Credit card transactions also typically cost a small fee or the tenant. For this reason, some tenants may prefer to pay by ACH transfer.
Collect Rent Online for Property Management Success
Despite the myths surrounding it, online rent collection is a successful and sustainable way to collect rent. Beyond its convenience and efficiency, online payments also offer you increased security, customization, and automation. You and your tenants will be glad you switched to online rent collection on a trusted property management software platform.
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