Electronic Rental Payments – How does this help Landlords?
In today’s world of technology, electronic payments (ecommerce/ACH) have quickly become a convenient way for consumers to pay. Application and rental transactions can be completed quickly and the purchase is confirmed. Some landlords are still using cash, checks, and money orders. Using paper methods of payment gives the applicant too many ways to be late. Many rental property owners and managers have adopted electronic rental payments for all the right reasons.
ELECTRONIC RENTAL PAYMENTS HELP IN MANY WAYS:
• Lower operating Cost
• Quicker transactions
• No checks to deal with
• No cash to deposit
• Receive funds immediately
• Convenience for applicants & tenants
• Less late payments
• Trackable transactions
The ability to take electronic payment benefits both the property owner and consumer alike. This means less money spent on paper, postage, and time. A customer is more likely to have a great experience when the transaction is completed quickly and hassle free.
Reports show that 25 percent of the world’s population is shopping online for everything, including rental property. That equates to nearly 2 billion digital buyers in 2019. Furthermore, this number is quickly rising and estimated to be 2.14 billion by 2021. The key point here is that more people are completing transactions online, and your rental applicants and tenants should have that option too.
The tools are readily available and you should be using a platform that offers this. Fact is, if you are in business of any type you need to be accepting electronic payments. Nearly 50% of American small businesses do not have an existing website, and even less have a way to take payments online from consumers. By implementing and using this you are ahead of the curve with your rental applicants.
WHY DO YOU PEOPLE BROWSE, SHOP, and PAY ONLINE?
Simple… because they can shop and complete transactions 24/7.
Let’s break it down – try to visit multiple real estate offices or property management offices during normal business hours, you might be able to. But, what if a rental prospect is comparing 4 or 5 properties and amenities, they would spend 2 weeks trying to find time in between work and church to visit that many places. So the facts are:
• Ability to Shop 24/7
• Quickly compare prices and amenities
• Greater variety
• Save fuel and time
• If you are not using electronic payments, you are hurting your ROI
Many companies offer this on a fee based or percentage basis. Companies such as clearnow.com, payyourrent.com, rentpayment.com, paylease.com, erentpayments.com, and many others are available for landlords. One landlord told us almost all her applicants and tenants request this service, she stated, “They are young, they know computers, and they do everything online. I’m typically older than my applicants and I do everything online so I get it”.
Written By: Jason Waggoner
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