As more people use the Internet and their smartphones to pay bills, current housing data shows a trend of apartment residents paying the rent online. Some property owners and managers are even encouraging residents to stop paying rent by check or money order. Many in the property management industry now see understand the benefits of online rental payments. The problem is getting tenants to pay rent online.
The Benefits of Online Payments
The frequent use of the Internet makes paying the rent online an easy choice. Accepting rent payments online is convenient for both residents and landlords. Tenants can pay the rent at any time without a trip to the rental office or dealing with drop boxes. Apartment building owners and managers get additional security for rent payments by not worrying about stolen or lost checks. Also, the online payments are deposited directly into the property’s bank account, giving the owners faster access to the money. Without the processing and depositing of checks, the payment reports are easier.
How to Encourage Residents to Pay Rent Online
Despite the benefits of paying rent online, there are residents reluctant to do this. Fortunately, there are several ways to encourage tenants to start paying the rent online
1. Offer tenants many payment options. This includes debit and credit cards, checking account conversion, and automatic recurring payments.
2. Set up an online payment portal for the apartment building. This will make the online payment process easier for residents.
3. Get residents to sign up for online paying during lease signings and renewals. Then send email reminders each month with a link to the portal.
4. Provide residents with incentives to pay online. You can give them free raffle tickets to win prizes or a discount of $20 to $50 off one month’s rent for signing up for online payments.
5. A final option is to make online payments mandatory. You have to add this stipulation to the lease agreement.
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