According to an article in USA Today, the average homeowner spends over $3,000 annually on home maintenance. That excludes costs like utilities and internet, as well as property management fees in the case of rental properties.
As a landlord, timely rent collection is vital for ensuring you can pay these bills on time.
Late rent payments occur for various unavoidable reasons, such as travel or bank holidays. An online rent collection system helps alleviate this issue for both landlords and tenants.
The Benefits of Online Rent Collection
It only makes sense to take advantage of technology whenever it can make your life easier. However, if you still need convincing, here are the benefits of collecting rent online:
Convenience
An online rent payment tool allows tenants to pay their rent from anywhere. It's affordable and involves little effort beyond clicking or tapping a few buttons.
For landlords, automated reminders and invoicing are time savers, too.
Accuracy
Online rent collection tools are accurate and never deviate from the amounts set out in the rent. This ensures good record-keeping and avoids the hassle of following up on incorrect payments or administering refunds for any overpayment.
When your tenants pay rent, the online payment tool sends you a notification. This includes the date and time paid as well as the amount paid.
Precise Record-Keeping
Both renters and landlords can access relevant receipts and invoices remotely. This is of invaluable assistance if a payment dispute ever arises.
It also makes it a lot easier when calculating your taxes.
Regular Reminders
When you set up your online payment system, you can set intervals for rent payment reminders and create a personalized message to go with them.
This facility helps remind tenants about their commitment and keeps them accountable.
How to Encourage Online Rent Payments
Under California law, landlords must accept at least one other form of payment apart from electronic transfers or cash. If you want to change the types of payments you accept, you need to draw up a new lease.
Overall, it's a better idea to persuade your tenants to pay rent online. There are three ways to do this:
Ask Your Tenants to Pay Online
Thanks to the convenience of online rent payments, this is often the easiest way to get your tenants to comply. Advertise your preferences from the start, highlighting the above benefits for tenants.
Make it Easy For Them
Research your online payment tool options thoroughly before you implement one. Be sure to choose one that's simple for them to use and preferably accessible via their mobile phone.
Similarly, if you decide to work with a property manager, ask them to demonstrate their online portal before you hire them.
Send Reminders
Send informative emails highlighting the convenience of online payments, including instructions for using your chosen payment tool. It's best to send this information with your monthly rent reminders and include a link to the tool.
Open and honest communications are the key to keeping your properties occupied by good tenants.
The Easy Route to Passive Income
Online rent collection is a simple solution for collecting payments and keeping a record of them. It offers numerous benefits for both landlords and tenants.
This is only one of the conveniences on offer when you work with a property management firm. Reach out for more information on how we can help you manage and maintain your San Diego rental properties.
