Why Is More Rent Payment Options Better?
One of the most important competitive advantages you can have is to provide multiple rent payment options so that your tenants can choose whatever format best fits their needs.
By: Nick Massie / 2017 / PayYourRent.com
Businesses across the board are digitizing their systems and technology is playing a bigger role than ever before. In fact, the trend in rent collection is for all residents to have the option of online payments, but that’s not to say that more traditional methods are being eliminated altogether. In fact, one of the most important competitive advantages you can have is to provide multiple rent payment options so that your tenants can choose whatever format best fits their needs.
The Range of Rent Payment Options
Every property, landlord, business, and tenant is unique. And what may be convenient for one person, may be impossible for the next. Access to technology, and the ability to use computers and smart devices, are hardly universal traits.
Just consider for instance a 75-year-old retiree scrambling to submit a rent payment online, or a 21-year-old student trying to recall how to fill out a personal check. It doesn’t take a genius to anticipate that these two demographics are going to prefer different rent payment options, which is why it is critical for landlords and property managers to make rent collection convenient for everyone – and that means providing options. The most successful businesses make it easy for their customers to do business with them.
Here are 7 rent payment methods to include:
➀ Cash
➁ Cashier’s Check
➂ Certified Check
➃ Money Order
➄ Direct Deposit
➅ Credit and Debit Cards
➆ Online Rent Payments
Evaluating Your Rent Payment Options
Unfortunately, most landlords and property managers learn the hard way that not all rent payment options are created equal. In fact, they vary greatly in terms of security and speed, which means that choosing which options you will and will not receive is a critical decision for your business and will vary according to your socioeconomic, geographic, and demographic context. That is to say, it depends.
When evaluating what rent payment options to provide for your tenants, here are some things to keep in mind are:
• Security: What information and how much information do you need to supply to your tenants in order for them to process the rent payment? Most online payment options do not require you to provide any personal banking information to your residents, keeping your private data safe and secure.
• Reliability: Is there potential for falsification? With personal checks, it’s impossible to verify if the check is real or if the funds are sufficient until you try to deposit it at a bank. In the case of credit card payments, tenants can report card charges as fraudulent, leaving you with no payment until the situation is rectified.
• Availability & Accessibility: Does the payment option require your tenant to visit a physical bank location? Does he/she need to have a particular kind of account?
• Associated fees: Are there any additional transaction fees? Who is charged?
• Physical vs. virtual: Do you have to deposit the funds at a physical location or is the transaction entirely electronic?
• Timing: How long does it take for funds to transfer? One day? Three days? A week?
Interested in a simple, secure solution for online rent payments?
Please feel free to contact us to see a demo of our product or to have us answer any questions that you might have, we are more than happy to help.
