Is it better to go online with payments?
This is a question that some property managers are asking. Tenant reliability increases with online payment. Using the internet, landlords receive on-demand payments if borrowers fail to pay, and landlords are often free to automate their payments.
Is Paying with Online Payments New?
Maybe your company already does this, or you think that it’s the 21st century – everyone is paying their rent online. Right? Actually, no.
The majority of property managers report that most of their tenants still pay rent in person or by check on a local level.
Informal Research on Online Payments
But that could be changing soon. Even on the most local level, with smaller buildings, the pandemic has created a need for distancing and accountability.
A recent study conducted by creditcards.com found that while only 27% of renters pay their rent online, 43% say they would be more likely to do so if it were easier to do so.
This sounds like it could be accurate, and we are not sure how the survey was conducted or if there’s a wincing of bias because most people automate payments with some credit card.
So, we are not adding the company name and would like to ask you to take this with a drop of salt, but it was worth mentioning.
The Ease of Online Payments for Tenants
And with technology making everything easier and more convenient every day, it’s not hard to imagine a future where online rent payments become the norm.
So should your property management company start accepting online rent payments?
Think like a renter.
Renting an apartment can be daunting, especially if you’re new to the area. You have to find a place that’s affordable, in a good neighborhood, and close to your work or school. And then you have to deal with the paperwork and annoying fees.
The Pandemic and Online Payments
But what if there was an easier way? What if you could pay your rent online without ever having to leave your house? Sounds great, right? Well, it turns out that paying rent online is becoming more and more popular…and for a good reason.
First, the number of people who are technology savvy is increasing.
Second, the amount of people who prefer to socially distance is also increasing, some by choice -some by the various urges to lockdown.
How to Transition to Accepting Rent Through Online Payments
You can let your renters know that there are more ways to pay their rent as while some will jump at the chance to pay online or through an app, and others will balk at this or outright refuse.
I think it’s a good idea to make the transition slow, as not everyone is tech-savvy and might need more time.
Also, not everyone even banks online (believe it or not) so this might take additional time for them as well.
Still, you might want some leeway for those who simply are not interested in online payments.
In Review
This winter, taking online payments might be an upgrade that saves you time and creates increased payment reliability.
The transition can be as flexible as you wish, with a focus on slowly integrating tenants who are willing to pay online as you move forward.
Online payment options help the property manager to have more time to focus on other tasks and to be more efficient, and more relaxed.
In Closing
For most tenants, this can be a great option as it makes the payment process quick and easy. Plus, it can help to reduce the chances of late payments.
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