Whether they manage 2 or 200 rental units, many landlords and property managers consider on time rent payment and collection to be their number one worry while managing their properties. It was estimated that more than half of Canadians do not pay their rent on time! The main reason being that they forgot!
The risk of late rent can be drastically reduced by adopting an automated and online rent payment approach. Below are 4 reasons why every landlord or property manager should utilize automated online payments.
By setting up automated recurring payments, landlords are able to get a steady and predictable monthly cashflow and consequently be in a better financial situation. Research showed that adopting a pre-authorized debit payment increased on time rent by 75%. Checks and envelopes are now a thing of the past! They are slow, error-prone, and can significantly impact the average on time rent payment.
2– Enhance tenant/landlord relationship.
You will no longer need to chase your rent or harass your tenants to ensure they made their monthly payment on time. A specialized rent payment platform sends the notifications to your tenants on your behalf without the hassle. Overtime, automated payments help tenants build better payment habits as it was shown that distraction is the main culprit for late rents. Just by simply having access to a more convenient payment platform, tenants find it much easier to remember to pay their rent on time. Gone are the days of constant, stressful and awkwards follow-ups. let a computer do it! This will certainly promote a healthier tenant/landlord relationship and contribute to reducing the tenant turnover.
3-Cost efficient approach.
The cost to use an automatic pre-authorized debit platform is around 0.3% per transaction or the equivalent of $2.25 for an average rent of $750. This surely seems like an extra cost at first, but this is easily compensated by the precious time saved trying to track, collect and deposit rent. More importantly, you can avoid the NSF fees. While banks will usually charge a $40 fine to the landlords if a payment fails, many online platforms don’t charge a fee. If this likely scenario happens only once a year per tenant, landlords would already be saving some money by adopting automated online payments
4-Integrated platforms (accounting)
One of the great perks of adopting online rent payment is keeping a history of your receipts and digitizing your documentation and transactions. Online platforms are now integrating accounting services with online rent payments, consequently saving drastic time during the stressful tax period. This enables landlords to focus on more exciting and important activities such as property hunting and new opportunities.
Cherry on top, the planet is also thankful for online payment options that are eliminating paper waste.
Automation is key to every thriving business and even more in the real estate world where it’s crucial to always be on the lookout for new opportunities. If you want to start automating your rent payment and don’t know where to start, we can help.
We are Plexflow, an online property management platform with the sole purpose of helping landlords and property managers become more efficient and free themselves from the tedious, day to day administrative tasks.
Start by requesting your free demo to learn how to value your time