If you are a property manager, whether it is for vacation rentals or long-term rental home, you know that collecting rent can be a problem. That is why a RentPayment program is one of the best investments you can make for your business. RentPayment fees are low and based on the type of services you need.
RentPayment Fees Pay For Themselves
Any landlord knows that collecting monthly rent from renters can be a nightmare. Whether you rent vacation home or housing, you probably charge a fee for late payment.
With RentPayment services, you can set rates by the day or by the month, and any late fees will be charged to the tenant’s rent. This takes the personal feature out of the equation, and the tenant is far more likely to see himself or herself as accountable to computerized accounting.
Besides accountability, tenants are increasingly likely to pay rent with a credit card. At the very least, they may prefer to use their debit card. This is because of the convenience of online payment portals. Renters seldom face a fee for using their bank cards and if they pay them off at the end of the month, they also help improve their credit score.
Popularity of Online Payment
According to the Federal Reserve, there has been a 20% decline in the use of paper checks in just this decade. The number of bills paid by ACH has gone up by 10%, and payments by credit card have increased by 15%.
What does this tell us? It says that people are looking for quick, secure, and reliable payment methods for their bills. Even large vendors who accept paper checks file them electronically. If you do not have electronic filing for your rent payments, you run the risk of a check bouncing.
Responsive Payments Portals
Leading marketing experts are telling us that any successful business will have to create a mobile-friendly website. More users are using their smartphones to access the internet. Amazon has grown in sales to the point were mainstay retailers in this country, such as Nordstrom’s and Macy’s, are closing stores. The internet has a daily impact in business, and every landlord can take advantage of this trend.
By making rent payment possible online, a landlord can broaden the target group of renters for his property. A potential tenant who is trying to improve his or her credit rating will want to pay with a credit card. This takes discipline and forward-thinking, and the ability to plan out finances. This type of planning is good for the renter and the landlord, not to mention the home.
An accessible RentPayment portal means that the information about payment will size itself to fit the screen of whichever device the user is viewing. That is a big demand, to require a website to size itself to anything from a PC monitor to a small smartphone screen.
However, by doing this, you can reduce the ratio of fee to rent payments. Studies have shown that on-time payments increase when a tenant can make a rent payment by using their smartphone. As they sit enjoying a nice breakfast, they remember to pay the rent and do so on the spot.
It is true that credit cards have a fee attached to purchases made. But the almost immediate payoff, the increase in on-time payments, and the lure for high-quality renters offsets most of those fees. You’ll make more money, and have more operating funds in the bank. Whether you rent by the day or month, or have tenants sign yearly leases, RentPayment fees will be among the smallest, yet most revenue-generating expenses you will face.