The way by which your tenants pay your rent bills can make a difference in how much profit you make month to month. Instead of focusing on simply ensuring all outstanding rent is paid, consider your monthly processing costs for rent: postage costs, paper, the cost of employees to process rents, bank fees, and the cost of errors and follow up for delinquent accounts.It’s a costly and lengthy process.
You can streamline rent collection for both your business and your tenants by automating the process with direct payments which gets the money to your account faster. If you are interested in freeing yourself from personal checks, bounced checks,and money orders, Venmo, Property Management Software and other traditional collection methods, consider Direct Payment viaACH (Automated Clearing House) Collection.
ACH uses pre-authorization to transfer funds directly from the tenant’s bank account to yours. They can be set up in advance to collect payments on the first of every month, and automate reminders, receipts, and tracking. Direct payment services get the rent into your bank account quickly, accurately, and efficiently in the following ways:
- Collecting payment information from tenants. Provides a secure portal to provide their payment information and make changes, if necessary, with the option to set up autopay.
- Invoicing and reminders. Automatically sends reminders to tenants prior to due dates.
- Transferring money. Rent collection software oversees the transfer of money from the tenant’s bank account into your hands, integrating directly with your bank account, so you have faster access to funds.
- Following up on overdue payments. Automatic follow up when rent goes unpaid includingalerting the landlord, sending automatic follow-up reminders to the tenant, andcharging predetermined late fees.
Most rent collection software charges a nominal fee to process the payment and give landlords and property managersthe option to pass fees along to the tenant. Think about automating your collections so you can spend your time growing your property portfolio instead of following up on late fees.
