Every business needs a reliable supply of income in order to remain operational. If you’re in the property management business that income comes exclusively from tenant payments. Having those rent deposits come in on time makes it possible to budget, plan, grow, and cover operational expenses.
While it is crucial to have that income deposited into your account when it’s due, collecting the rent on your properties can be an ordeal. Waiting for snail mail to arrive, taking time out of your schedule to collect checks, and having potentially uncomfortable conversations with tenants are just some of the pitfalls of the job. It doesn’t have to be so difficult.
There are tools and strategies available that can help alleviate the hassle of collecting rent. With the use of creative technology and modern payment options your business can secure better cash flow without adding to your workload. Read on for our compiled list of ideas to make collecting rent less of a burden.
1. Offer Various Payment Options
Catering to the individual preferences of individuals can help your business collect rent payments more promptly. Technology makes it possible for rent to be paid online with a credit card or money transfer. These payments are instantaneous and easy for both parties.
While many tenants will embrace the use of modern options some tenants will undoubtedly prefer to pay their rent by check. Although this payment method isn’t the most practical or time efficient option, there are tools to help your business make check processing easier. With the right solutions you may even learn to love this method of payment.
Modern technology can allow your business to quickly process and scan checks. Sending digital copies to your bank allows the funds to be in your bank account quickly and removes the hassle of having to physically go to your financial institution. Save time without affecting your cash flow with check scanning capabilities.
2. Paying in Advance
It’s unreasonable to expect life to revolve around the rent due date. Tenants will at times have other obligations that will make it impossible for them to pay their rent right on the day it becomes due. Good landlords understand that even the best tenants can’t always make their payments at exactly the same time.
As a property management professionals should we expect our rent payments to be late when tenants have other obligations? Certainly some will be but you can reduce the amount in arrears by offering tenants the option to pay in advance. When people know they will be out of town or otherwise unavailable, they can make arrangements to pay their bills ahead of time and getting your money early is always preferable to getting it late.
3. Automate Collections
Nobody likes to have those awkward conversations about money owed but collection activities are a standard and unavoidable part of the property management business. That doesn’t mean you need to devote your valuable time to having those conversations nobody wants to be a part of. There are technological solutions that can not only save you time but also make collections more bearable for everyone.
With the right software you can set up automatic reminders of upcoming deadlines, payments due, and overdue rent. These automated collection notices can be delivered to tenant phones and computers when needed without affecting the tenant-landlord relationship. Once you set them up, automated collections need no further involvement from you and that is a real time saver.
Make it easy for tenants to take immediate action when they receive a reminder. Include links to your online payment options so that rent can be paid within moments with just the click of a few buttons. Easily actionable solutions ensure that tenants won’t put off your reminders and end up forgetting about them.
4. Make it Easy for Tenants to Pay
These days most people are busy and payment options that are slow, cumbersome, and require time taken out of a day are the most likely to be put off for later. Making it easy for tenants to pay their rent on the fly greatly increases the likelihood that bills will be paid on time. Online payment options and actionable reminders sent to their inbox are great options but not relying on tenant action is the most effective of all.
Automatic payments are the most convenient payment option available because they take no effort at all. Rent payments are the perfect candidate for automatic payments since they are due at the same time each month and in the same amount. Once set up, the funds are automatically moved from the tenant account into your business account. There is no simpler way to pay bills.
5. Embrace Tenant DIY
You can combine innovative payment ideas while saving time and boosting tenant satisfaction with a well designed tenant portal. This software solution allows tenants do-it-yourself options such as making online payments, viewing statements, signing up for automatic payments, and making advance payments all in one place. A well designed tenant portal is an efficient and effective tool to keep tenants organized and help them pay their rent on time.
The tenant portal is a wonderful tool to engage with tenants and handle communications as well. They can connect with you through their portal and check on the status of open maintenance requests. You can even incorporate message boards to build a community and share posts to inform and captivate.
Is your property management business at risk of being in the red due to cash flow issues? Are you becoming overwhelmed with collections on overdue accounts? Innovative software solutions can help. Alleviate the burden and hassle of collecting rent and focus on growing your business.