Breaking the 3 Common Myths Around Online Rent Collection
By Ben and Dina Lynch, Co-Founders of RentMindMe
Managing your rental properties the old school way by calling, texting, and emailing your tenants the first week of every month to chase down rent…is a real pain in the #!%. We know. We did it for years. If you’re a landlord or property manager still stuck in the analog days, there are better ways that will save you time, energy, headaches, and money.
Chances are you’ve heard about online rent collection.
But maybe you’re wondering… How does it really make life easier for me and my tenants? We’re here to answer that question and debunk some of the most common myths that may be holding you back.
3 Myths Surrounding Online Rent Collection
Myth 1 – It’s Complicated
Sure, you’ve been doing it by hand for years, and despite all the time, effort, and headaches, it eventually gets the job done. We get it. But did you know, online rent collection software is easy to set up and flexible enough to support your current business processes? Just think how amazing your life could be if you could instantly reduce the monthly stress of collecting rent. No more texts, calls, or emails chasing after rent. Technology does it for you… automatically… for every tenant… every month.
Whether you manage your properties by yourself or with a team, online rent collection automates invoice creation, rent reminders, payment collection, and direct deposits. No need for excess reporting or tasks to CYA.
Are you still having to track down tenants after the fact to collect late fees? If your tenants are late paying rent, rent collection software will automatically calculate the late fee, add it to their invoice and send continuous reminders until rent is paid or you decide other action is necessary.
Support When You Need It
Most online rental management solutions have support teams ready to help you and your team during the transition. In some cases, these support teams can even help your tenants set up the software so you can focus on your work instead of playing the role of customer service.
When searching for the best solution, we recommend checking out their website, make a list of questions and schedule a demo. Once you’re on a call, you’ll be able to share your specific needs and challenges to ensure you’re choosing the best online rent collection solution for your business.
Myth 2 – My Tenants Don’t Use Technology
A common misconception is that tenants don’t have access to technology or worse yet, don’t have an email address. Did you know that according to a recent 2019 study, 96% of Americans own a cellphone and over 70% of Americans use some form of social media?
To pay rent online all a tenant needs is an internet connection and an email address. If they use a smartphone and log into Facebook, Twitter, Snapchat, LinkedIn, or any other form of social media (and there are lots out there) they have an email address.
Technology isn’t Scary When you Communicate
Introducing change can sometimes seem scary, especially if you’ve been doing the same thing for a while. However, when we communicated that we were switching to an online payment option, we found that our tenants were not only relieved, but grateful to finally have a more convenient way to pay rent.
These days, people are used to the convenience of digital payment methods for everything like paying credit cards, car loans, utilities, online shopping and student loans. Why not add rent to the list? Once we introduced online payments, not only did our late payments decrease, but 30% paid before rent was even due. With the ease of automated email and text rent reminders, it takes less than one minute to pay rent. Making things more convenient for your tenants is a benefit to them and a benefit to you. We call that a win-win.
Myth 3 – My Tenants Don’t Have Bank Accounts
Just because your tenants pay you in cash or money order doesn’t mean they don’t have a bank account. According to a 2017 FDIC survey, 94% of Americans have bank accounts yet only 40% actually write checks. Because of debit cards and ATM’s, fewer people own checks.
Before offering an online rent payment option, our tenants had to make a special trip to the bank to get a money order, or worse, because rent was more than $500, they had to make multiple trips to the ATM to get cash. We never realized what a hassle it was for our tenants to pay rent.
With online rent collection you give them the option to use the free digital check service or pay with a debit/credit card (for a small fee), all from the comfort of their home. No more trips, no more hassle.
What About Credit/Debit Card Fees?
Many rental management solutions offer the ability to process credit or debit card transactions with no cost for you. Tenants pay the transaction fee along with their rent payment. And although it’s an extra cost, often it’s less than a late fee.
Bonus Myth – It’s Expensive
There are many solutions available that you can quickly work into your budget without breaking the bank. And with the amount of time you’ll save using an online solution, you’ll more than cover the cost in free time…and as everyone knows, time is money.
Your time is valuable and equates to real dollars. That’s why an online rent collection software is designed to not only save you headaches, but also help you streamline processes, which saves time and money across your operations. Online rent collection has worked wonders for our business. If you’re interested in learning more about these solutions, check out RentMindMe today.
RentMindMe.com is an online rent collection and management software designed by landlords like you to streamline business processes for landlords, property managers and centralized business offices. Co-founded by Ben and Dina Lynch, RentMindMe combines their 40+ years of business experience with their 20+ years of rental management experience to provide you with an easy to use, intuitive rental management tool.
If you have questions, please call 419-318-0664 or email [email protected].