As a landlord, it is important to streamline your business. To succeed in this endeavor, you should consider integrating online rent collection. This system would completely streamline the financial transactions related to your property. In this comprehensive guide, we will expound on online rent collection services and the advantages that they offer.
What is an Online Rent Payment Service for Landlords?
An online rent payment service for landlords is a specially-designed system that is used by tenants to pay their rent in an electronic manner.
How Does an Online Rent Payment System Work?
An online rent payment system works by offering several different methods for electronically paying the rent required by their landlord. Examples of payment methods that may be used on this system includes direct deposits, payments made by credit card, online portals, and/or online apps. If an app is used, it is usually those that are designed especially for collecting rent monies.
What are the Best Payment Methods for Landlords?
The best payment methods used by landlords that rent out properties is one that permits for automatic payments. These include the following:
- ACH Transfer, which is a bank-to-bank transfer.
- Debit Card
- Services That Offer Money Transfers
- Credit Card
- Money Order
- Check
- Cash
What are the Most Favored Rent Payment Apps as Rated by Landlords?
Many different types of online apps may be used by you to collect rent from your tenants. The following outlines the most popular apps used today:
- Paytm
- PhonePr
- PayZapp
- Buildium
- ePayRent
- CRED
- NoBroker
- RedGiraffe
- Freecharge
- Google Pay
- Airtel Payment Banks
- Amazon Pay
What Benefits Do Tenants Reap if They Pay Their Rent Using a Credit Card?
As a landlord who wants to have tenants pay their rent online, you May find that several – especially the older generations – do not like to pay their rent online. This is completely understandable given the fact that they may be uncomfortable using a new system. They should know that there are many advantages to paying their rent online – especially if they use a credit card. The following outlines these benefits:
- Many credit cards will offer cashback incentives for holders that use it to pay their rent. This means that the tenant will get back a little bit of the money that they pay in.
- Reward point programs are often associated with credit card. These points may often be used to get discounts or to obtain gifts.
- In most instances where the tenant uses a credit card to pay for their rent, they can get up to 45 days with absolutely no interest fee.
- When tenants pay with a credit card, they will find that they are capable of making their rent payment in a timely fashion.
- Once the tenant has set up the details pertaining to their landlord, the platform being used will help in automating the payment process.
Why is it Important for a Landlord to Have an Effective Rent Payment System?
As you well know, the money that you make on your rentals is the lifeblood of your overall success. By receiving your rent money from tenants in a regular and effective manner, you will help in ensuring that your cash flow is coming in on a steady, regular basis. This will help you in covering any and all expenses associated with the property, make certain that the mortgage payments on the property are paid, and will help you in generating a passive income. In the end, you will have a more solid layer of financial stability and be able to plan long-term investments in more rental properties.
What are the Main Benefits of Using an Online Rent Payment System?
Collecting rent through an online payment system is easy for your tenants and convenient for you! In addition to this, it offers the following benefits:
- Secure and reliable payments
- It is possible to collect security deposits, late fees, and other types of fees imposed on your tenants
- The platform may be set up so that it sends reminders to your tenants
- Tenants have indicated that it is much easier for them to use a payment system to pay their rent and all associated fees
- No contracts and no collection policies are necessary when using an online payment system to collect rent money
- When using an online payment system, you will find that you are able to keep track of and monitor the financial records of your rentals
Is it Better to Hire a Property Management Company?
If you are reading this, you quite likely already know that investing in real estate is a sound and significant milestone that may assist you in achieving the financial freedom that you desire. Unfortunately, the task does come with its fair share of responsibilities and challenges. This may prove to be overwhelming; however, if you hire a property management company, you can automate and streamline your property management business.
By purchasing various properties, you will find that you are involved in many different tasks. Examples include complying with the local zoning laws, adhering to the bylaws in the neighborhood where your rental property is located, engaging in preventative maintenance. You must also choose the right tenants, follow the landlord rules and laws, work with vendors that are qualified to do the jobs that need done, and handling your own bookkeeping. The best way to overcome all of this and get through it is to hire a property management company.
We here at Pioneer Property Management are standing by to assist you with the ownership and operations of your rentals. We have the ability to completely streamline your rental business and automate it so that it runs on autopilot around the clock. There are numerous benefits to hiring a property management company. The following outlines many of these benefits:
- Regulation Knowledge – We here at Pioneer Property Management are completely familiar with all of the various laws, ordinances in zoning, and other rules as set in place by governing officials.
- Legal Competency – We are experienced property managers that know all there is to know about landlord/tenant laws, violations in codes, and how to avoid the risks of a lawsuit.
- Occupancy and Rent Collection – We specialize in maintaining high levels in occupancy rates and enforce timely rent payments and collect for you.
- Tenant Screening – We carefully select the tenants that will live in your property. That way, you get high quality people that will help in increasing your revenue.
- Bookkeeping – We here at Pioneer provide detailed bookkeeping so that your tax reporting is simplified.
- Increased Property Value – We here at Pioneer will help in maintaining your property and enhancing it so that its value increases over time and does not decrease over time.
If you want to automate your business and maximize your return on investment, contact us here at Pioneer Property Management today to learn more!
What Types of Properties Need Professional Property Management?
The types of properties that require professional property management include:
Residential Properties: This category includes single-family homes, condominiums, apartment buildings, and duplexes. ?
Retail Centers: Commercial properties that house retail businesses.
Offices: Office buildings and spaces used for business operations.
Land: Land that is leased out for purposes such as parking, billboards, and mobile businesses, or land positioned for development.
Both tenant-occupied and vacant properties can benefit from professional property management to ensure they are well-maintained, safe, and potentially income-generating.
Why Do Online Payment Systems Charge a Fee?
The fee that is charged by online payment systems is a convenience fee. This helps to cover any costs that are incurred by the merchant that is charged in processing credit card payments.
Will Paying Rent Online Help Tenants Build Credit?
No, online rent pay systems are not designed to help tenants build their credit. If your landlord reports your rent payments, then you may gain points on your credit score. Plus, if you are known for making payments on time with your landlord, you will gain a good reputation and more landlords will be willing to rent to you.
Why Would a Landlord Want Cash Only?
If a landlord is requiring cash only rental payments, it is likely that the landlord is trying to avoid complications such as fraud, returned checks, and other types of issues. The bad thing about cash only transactions is that they lack a digital trail that is verifiable and that increases the chance that disputes and security concerns. It is best to have your tenants use a payment method that is tracked on both sides – yours and theirs. The real estate business is one about mutual cooperation.
Contact Us Today
If you are ready to take the next step in your rental business, contact us here at Pioneer Property Management for immediate assistance. We offer a large multitude of services for your business. It does not matter what your budget is or how seasoned you are in the industry, we can help you achieve higher levels of success in your real estate business. Contact us now by calling the following number: 720-839-7482
