Investing in rental properties is a fantastic and incredibly popular way to bring in passive income. Whether you’re pursuing financial independence and early retirement or just looking to get ahead on your bills, being a landlord is a worthwhile pursuit. You have the unique opportunity to be earning money while you’re sleeping, on vacation, and dedicating time to your passions and hobbies. Luckily, we also happen to be living in a time when technology makes everything easier, so why not take advantage of that?
One of the easiest ways to streamline the process is collecting rent payments online. According to a study of how U.S. consumers pay for goods, it’s anticipated that by 2022 80% of goods will be purchased using some form of digital payment (debit, credit, ewallet). We rely on technology to help us pay our bills, keep our calendars, stay in touch through social media, and so much more. It only makes sense to use it for rent payments, too.
You can use the life changing magic of online rent payments to improve your monthly cash flow and make your tenant’s lives easier:
It’s more convenient for both parties
On the landlord side of the equation, receiving online rent payments means less time stalking the mailman, driving to the bank, and waiting for the check to clear. Your rental income will make its way right into your account, without any effort or work from you. Receiving online rent payments also protects you from those rare but painful occasions when checks get lost in the mail, rain-soaked in the mailbox, or can’t be cleared due to a clerical issue.
Equally important is what the option of online rent payments does for tenants. Since most individuals are paying their other bills online anyway, the ability to pay rent online is likely to lead to more on-time payments, especially since most providers offer the option for tenants to enroll in auto-pay. It also eliminates the need for them to buy envelopes, checks, and stamps, which can really add up. Tenants will appreciate your updated approach to a task that used to feel burdensome and outdated.
It helps you foster tenant-landlord relationships without excessive contact
So, now that we’ve established that online rent payments help you get your money faster and tenants make payments that are easier and more convenient, let’s talk about what that does for the relationship you’ve built with your tenant:
Online rent payments are easy to establish and offer the ability to setup auto-pay, so the tenant doesn’t have to do anything in order to pay the rent. They don’t have to buy the supplies, remember when to stick the check in the mailbox, or move money from one account to another. You’ve eliminated a huge hassle for them each month and it’ll change how they see you as a landlord.
When it’s time to re-sign their lease, they’ll remember you as the landlord that offered them an easy and convenient alternative, unlike their previous landlord who had to send rent reminders and charge late fees when the check took a little longer to arrive than usual. Keep in mind: a happy tenant means a longer lease and less turnover; it’s a win-win!
It’s safer and more reliable
When tenants choose to make their rent payments online, it adds a level of security and transparency that you don’t have with traditional payments. First, you can see if and when the tenant has scheduled their payment and when it will be processed. This goes back to fostering that tenant-landlord relationship. Rather than having to call, e-mail, or text on the 2nd or 3rd of the month, you can log in and see that they’ve scheduled their payment and it’ll be in your account before your grace period ends.
This method reduces confusion, makes it difficult for tenants to forget paying rent since they’re logging in to pay their other bills already, eliminates the need for manual follow-ups and reminders, and streamlines the entire process of paying and collecting rent. Since the money is being moving right from their account to yours, it’s also safer. Online banking and bill payments are considered to be safer than other payment methods because they eliminate the risk of bank information going to the wrong place.
Overall, online rent payments are a blessing for both tenants and landlords. They’re easier, faster, more reliable and transparent, safer, and cost-effective. What’s not to love? Now that you’re ready to experience the life changing magic of online rent payments, take that time you’ve saved and use it to read up on other ways to be the best landlord you can be, like this one on managing your time with rental properties or this one on how to promote your rental vacancy online.
But first, click here to get started collecting rent online with PayRent!
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One Reply to “How to Improve Cash Flow with Online Rent Payments”
Yes, online rent payment is good in many ways as mentioned in the article. All my tenants deposit their rent on my rental account. The only drawback is if a tenant has received a 3day notice to pay rent or quit, this is when it gets complicated. For instance, a tenant can deposit partial payment to an online rental system after receiving the 3day notice. This invalidates the 3day notice because it is then deemed accepted as a payment even if it’s not the full rent amount. Hence, a Landlord has to start over again with the notice. But chances are that this is not likely to happen if a good landlord-tenant relationship exists and that your rental property is well maintained, priced slightly below market, and in a good neighborhood.