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by Kris Rudeegraap
With businesses everywhere going electronic, the cost of paper is actually rising.
Ironically, that’s because we are using less of it.  And it’s costing you money.
Consumers are overwhelmingly in favor of digital news and entertainment rather than schlepping stacks of coffee-stained newspapers down to recycle every month.
At a recent expo for publishers, the prevailing prediction is that after a number of paper mill closings, bankruptcy filings, and the skyrocketing costs of pulp and the energy needed to press it into a paperback or an envelope for your next rent check, paper may become something of a rarity – like 8-tracks and vinyl.
Thriving businesses have known for awhile that electronic data management and e-commerce save time, and money.  So, why are you still collecting rent checks in the mail every month? Maybe you’re into vintage.
Truth is, electronic payments are actually more secure than snail mail, where your rent checks are easily lost or tampered with.  A thief only has to be clever enough to follow the mailman around the block.  And who wants to pine away, day after day, wondering if the rent check is, indeed, ‘in the mail’?
An electronic payment system is easier for tenants, and easier for you.  They get confirmation as soon as their transaction is complete, and they can pay the rent right alongside other bills they pay online — while they still have the money.
You get the peace of mind that can only come from the ability to track your tenants 24/7 to make sure your money’s coming in.
Earth Day’s next week, where we turn our attention and ingenuity towards the future of our planet.  That’s a perfect excuse to sign up for electronic rent payments. Do it to be green.  It’s also a tough economy.  The post office wants to halt Saturday deliveries to save money, and toss a whopping rate increase at us the beginning of the year, while those who do still make paper are having to charge more for it.  Do it to save money.  Do it to be smart.
Kris Rudeegraap is Marketing Coordinator for RentPayment, which provides a complete electronic payment service for properties to accept credit/debit cards and electronic checks for rent and security deposits, and check scanning services. For more information visit,  email Kris at [email protected] or call 1-866-289-5977 ext 212.

American Apartment Owners Association offers discounts on products and services for landlords related to your real estate investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at joinaaoa. 

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  • brassservices

    What a crock. The business of collecting paper checks saves money to this day. The cost in time whereupon banks delay passing funds through to your landlord account when paid electronically is far longer than the few minutes it takes to walk up to the business teller and handle a direct deposit. Furthermore, the outrageous additional fees associated with each electronic transaction are far higher than simply walking into the local branch.

    Remember, the cost of paper, envelope, stamp and delivery is borne by the renters and not the landlord, so this does not figure into it.

    The paperwork and tracking is ultimately the same as you, the landlord have the ability to get bank statements online, get copies of checks online and more. In fact, with direct deposit, you run less risk of having funds deposited into someone else’s account wrongly, with all the associative hassle of trying to get such a bank error corrected.

    Finally, to be fair, the cost of a tank of gas is not the cost of going to the bank for most landlords. Most normal people in life travel about their community on daily business, hither and yon, in order to buy goods and engage in the commerce of their life. As such, most are near a bank on any given day, so the burden of a five or ten minute sojourn to the side, is hardly a factor, nor has it been a burden for millions of landlords for decades of modern times.

    Use paper. Until the cost of a sheet of paper is dollars, not pennies, the ratio of savings to loss is still in favor of paper.

    This said, the large, industrial-size landlord that oversees 50 or more units, is probably a management firm and should engage in electronic checking in order to provide assurances to their end-client (the actual land owners), by doing so.

  • John

    One free way to go is to open a account, I call a tenant deposit account. The tenants take a deposit slip to the bank and they get a receipt. I transfer the money into my regular account and I haven’t had a bad check yet. I don’t even buy checks for that account, just deposit tickets. I never hear it’s in the mail and they save postal fees and seem to like it.

  • dan

    Ive done the same for years. Nothing new and it works great.

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