Managing rental properties can be exhausting at times, especially if you do not have a good system in place for collecting rental payments. If you are tired of having to go door to door to collect these payments each month, you might want to consider setting up an electronic payment system. This would not only make your job easier, but it could also help you collect more rent. Your tenants will also benefit. Here are several things you should know about receiving electronic payments with your rental property business.
You Will Need to Set It Up
Setting up a system that allows you to receive electronic payments is something you will only have to do once. You can do this through a merchant account. Merchant account businesses act as middlemen between you and your tenants. They process the electronic payments for you through the Automated Clearing House (ACH), and they handle every detail of the transactions.
When you begin looking for a merchant account business to use, make sure you compare the fees they charge. All of these businesses charge small fees, but you might be able to find one with the lowest fees by comparing several different companies.
Once you choose a merchant account business, you will be able to set up the account on your website, and your tenants will then be able to begin using the system.
You Should Offer Several Options
Allowing customers to pay their rent electronically is a huge benefit for any type of business, but you will need to offer options. The two main options are allowing them to make one-time payments or set up recurring payments. One-time payments would be nice for tenants that want to pay their bills from time to time with the system, while recurring payments are nice for people that want to designate and pay their rental payments every month with the system.
You Will Need to Spread the Word and Encourage Tenants to Use the System
Once you have the system up and running, it may take some time for your tenants to begin using it. You may want to send them letters to tell them about this new service you are offering, and you might even want to encourage them to sign up by offering incentives. You should make sure the letter clearly tells the tenants how to sign up and use this new service. You may also want to explain how this service will make their lives easier.
You will benefit if your customers sign up for recurring payments, so you may want to offer the following incentives to them:
- Discount on their monthly rental payments
- One-time gift for signing up
- Gift card after they use the system for a certain amount of time
Any incentives you offer could be enough to encourage some of your tenants to use these services.
You Will Benefit
If you can convince your tenants to use the electronic payment services, you may have an easier time collecting rent each month. In addition, when tenants sign up for recurring payments, you are basically guaranteed to receive the money from them each month. This will make your tasks as a property manager easier, and it could greatly improve the cash flow of your business each month.
Setting up a system that allows you to receive electronic payments is not only a good idea for you, but it is also something many of your tenants will probably appreciate. This is just one of many types of tenant services you can incorporate into your business. To learn about other options and strategies to help your business succeed, contact a company that specializes in tenant services, like Two Rivers Investment.