One of the most unpleasant elements of property management is rent collection. Switching to an online rent payment service, on the other hand, may alleviate this burden and assist in speeding the entire process by changing it with the Commercial Property Management Software. Once you understand your current tenants' issues, it is simple to persuade them to pay rent online. The most common complaints received from tenants regarding paying rent online are here.
Banks do nothing to engender goodwill among low-income or cash-flow-challenged consumers, believe it or not. Renters who do not wish to participate in banking will be more willing to sign up for a rent collecting service that does not need a bank account, assures no overdraft fees, or otherwise assists a renter in avoiding expenses, whether disguised or not. When contemplating a rent collecting agency that doesn't reveal costs because "the tenant pays," proceed with care. Owners think they are excellent, but they frequently have trouble getting renters to participate.
What property managers can do: Inform your tenants about the security features of the online rent payment system you're using. Suppose you're processing payments using platforms; in that case, you may point residents to information that these businesses have released about the security measures they take, such as encryption and two-factor authentication. Older tenants, in particular, have a lot of worries and have a lot of misconceptions about how internet transactions operate. So it could be a good idea to suggest that they call a customer care representative at their bank to learn how their security is ensured during the process.
"There is a small danger in completing any financial transaction online," tenants warn. The physical check is a more dependable method of demonstrating payment. The website failed after authorizing a transaction, resulting in a late charge.
Remind tenants that traditional payment methods such as cash, money orders, and checks come with their own set of dangers (such as loss or theft), whereas online rent payment options avoid them. Make sure tenants know who to contact if they have technical issues paying their rent online—knowing that someone is there to help alleviate some of the tension that comes with doing so. Finally, if you haven't received a payment from a resident who makes monthly online rent payments manually, try reaching out before incurring a late charge.
After knowing the main objections by the renter and how the project manager can deal, let's find out the online payment method.
The advantages of collecting payments online are numerous; nevertheless, a renter may be turned off by the higher transaction fees required when using a credit card or debit card. Consider having an ACH (Automated Clearing House Network)-based in-built online payment option to circumvent this. The electronic transfer of funds between accounts at different banks is an ACH transfer. To guarantee a seamless onboarding and acceptance of the online payment system, a property manager will need to educate the renter on the benefits.
We discussed the advantages of using an online rent solution for property management or landlord, but there are also advantages for tenants.
REDA is a property management system with an integrated payment solution and can help with the entire rent collecting process. Customers may incorporate the rent payment module in their existing property management software using our pay-as-you-go method.