7 Reasons You Should Ditch Paper Checks and Collect Rent Online

If you’ve been in the real estate business for any amount of time, you know that things can change quickly. However, one thing that hasn’t changed is the method that most landlords use to collect rent. Despite electronic payments being widely available, landlords have been slow to adapt.

According to the Federal Reserve Bank of Boston, paper methods are still highly used among landlords and tenants, with 22 percent of tenants paying by cash, 42 percent by check, and 16 percent by money order. Here are seven reasons you should start collecting rent electronically.

1. Convenience

The most apparent reason to collect rent online is convenience. Tenants able to pay their rent from anywhere nearly anywhere and at any time. You won’t be checking the mailbox, calling tenants, visiting dropboxes, or going door to door to get paid. Most rent collection apps send reminders to tenants and save payment methods so that when rent comes due, they can quickly pay their rent with just a few clicks. The fewer steps your tenant has to take to pay you, the more likely you are to be paid on time.

2. Accept Credit Cards

Online rent collection platforms allow tenants to pay their rent with credit and debit cards. While most platforms will charge a fee for credit card payments, it is often a good option for tenants who struggle with cash flow. A small percentage of their rent is likely to be cheaper than a late fee, an overdraft charge, or a payday loan. Renters will also be able to earn credit, miles, or reward points from their credit card companies on one of their most substantial monthly expenses.

3. Save Time

The traditional method of collecting rent is with paper checks. They’re free and easy, so what’s not to love? Studies suggest that while paper checks may appear to be free to both you and your tenant, the time that you’ll spend processing that banknote could cost you approximately $8-$10.

4. Real-Time Tracking

“The check is in the mail” is a sentence that many landlords have heard, only to have the check show up a week later or go missing altogether. With online rent collection, you’ll receive an email notification each time a payment is initiated, and you’ll be able to track the amount as it processes.

5. Enforce Late Fees and Prevent Partial Payments

Have you ever tried evicting a tenant only for them to submit a small partial payment that starts the whole eviction process over again? Seasoned landlords know this can be a problem and that they need to protect their business from partial payments. Peer-to-peer platforms like Zelle, Venmo, and Paypal don’t allow the recipient of a payment to reject the incoming money. A reliable Rent collection platform, can block all payments or allow for only a full payment to be made.

6. Set up a Payment Plan

It’s no secret that COVID-19 has drastically affected renters and landlords across the country, and while partial payments are not always a good idea, at times, something is better than nothing. With PayRent, you can set up weekly, or bi-monthly payments with your tenants at no extra charge. Because PayRent uses a percentage-based fee system, it doesn’t cost you or your tenants higher processing fees for multiple payments, eliminating hurdles that slow down your rental income.

7. Safety

While most tenants are non-violent, collecting rent in person can lead to tense situations, especially when a renter’s living situation is in jeopardy. There have been multiple incidents of landlords being assaulted or murdered by volatile tenants. By collecting rent online, you are provided and an additional level of personal safety. If you do need to confront your renter about possible eviction, it is best to request the company of a law enforcement officer to accompany you.

PayRent is an excellent option for landlords hoping to move their rent collection into the 21st century. There are no contracts or membership fees, so you’ll only pay for the payments that you process. Furthermore, PayRent gives you the option to pay the processing fees for incoming rent payments or split or pass them through to your tenants. To learn more about online rent collection with PayRent, click here or call (855) 949-3488.

Collect Rent Online

AAGLA is collaborating with PayRent.com to offer property owners and managers a safe and simple way to collect rent online along with time-saving tools and features to make managing rental properties less tedious. Members can join for FREE and get started in less than 5 minutes. Click here to learn more.