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Published on October 24th, 2024 If you\u2019re still collecting paper rent checks and spending valuable time on manual data entry, then now is the time to implement a paperless system. In addition to being an expected and standard part of doing business today, online rent payments are essential for improving your resident and employee experience.<\/span><\/p>\n According to AppFolio\u2019s <\/span>2024 Renter Preferences Report<\/span><\/a>, the more common paying rent online becomes, the more important it is for property managers to offer those options. In fact, 95% of renters who currently pay rent online consider it important. This goes to show that those who use this method of payment love it, which is an early indicator that it\u2019s valuable and will only continue to grow in adoption.<\/span><\/p>\n Keep reading to uncover <\/span>11<\/span> ways online rent payments can help streamline processes, eliminate inefficiencies, and benefit everyone.<\/span><\/p>\n Manually collecting rent, preparing deposit slips, and making trips to the bank to deposit funds can take up valuable team time. Once the checks clear, employees spend even more time manually posting receipts and updating resident records.\u00a0<\/span><\/p>\n By giving residents a single app they can use for everything \u2014 making payments and beyond \u2014 they benefit from convenience and flexibility, while you reduce operating expenses that would otherwise be spent on manual entry and follow-ups.<\/span><\/p>\n The team at Centana Property Management has been able to do just that by switching to online rent payments. Since implementing an online payment system, they have been able to streamline their workflows and drive efficiency.<\/span><\/p>\n \u201dWe have 91% of our renters activated on the online portal, and almost all of them pay that way every single month. So just the foot traffic \u2014 not having to be in the office for people to make their rent payments and then having to enter them in and run to the bank to make deposits \u2014 has saved us about 10 hours a week.\u201d \u2013 Cora Langel-Person, Office Manager and Property Manager at Centana Property Management<\/span><\/p>\n<\/blockquote>\n Manual accounting errors can quickly and easily become costly mistakes for your business. Fortunately, online rent payment services prevent the most common accounting errors property managers face with paper-based record-keeping systems, including:<\/span><\/p>\n All of these common accounting errors can create a worst-case scenario of inaccuracies in balance sheets and financial statements, but a paperless system can eliminate or minimize them. Ultimately, you\u2019ll save your organization time, money, and frustration while boosting your team\u2019s overall productivity and efficiency.\u00a0<\/span><\/p>\n Considering that PWC\u2019s 2022 Global Digital Trust Insights Survey revealed \u201cone in four companies (27%) globally have suffered a data breach that cost them USD $1\u2013$20 million or more in the past three years,\u201d securing your residents\u2019 information should be among your most urgent priorities.<\/span><\/p>\n A well-designed online rent payment system will have security safeguards built into every step for residents. With a personal, password-protected payment portal that safeguards both in-transit and at-rest data, residents can pay rent online without worrying about identity theft \u2014 and property managers can be confident that sensitive data is shielded from unauthorized views.<\/span><\/p>\n Accurate records are undeniably essential to your company\u2019s success. Depending on the vendor, many online rent payment systems include real-time analytics that can enable you and your team to make better, more informed business decisions.\u00a0<\/span><\/p>\n You can also gain a clearer, more complete snapshot of your organization\u2019s financial health by having owners receive monthly disbursements and pay assessments online. In addition, resident payment data allows you to identify trends such as late payment frequency, non-rent assessments, and payment type preferences that may change over time, all of which can help you better pivot and implement future financial strategies.<\/span><\/p>\n Paying rent online via a fully integrated, self-service system allows residents to access their full payment history, review any fees and assessments, and modify payment choices, all at their convenience.\u00a0<\/span><\/p>\n From the business side, that same fully integrated system can help streamline your communication with residents thanks to automated communication features such as text and email alerts when rent or one-time fees are due.<\/span><\/p>\n That\u2019s not only great for maximizing your time and improving productivity, it\u2019s also good for business. Data from the <\/span>2024 Renters Preferences Report<\/span><\/a> shows that communication is key for renters. Compared to renters who were unsatisfied with communication, those who were happy with the communication from their property management company are nearly four times (87% vs. 23%) more likely to recommend their management company.<\/span><\/p>\n When rent payments are made manually in person or by mail or drop box, it\u2019s much harder to keep track of who has paid and when payments were submitted. As a result, it can be difficult to hold residents accountable and protect your business. However, with an online rental payment system, you have a more accurate digital record that allows your teams to instantly verify if and when a payment was made.<\/span><\/p>\n Along with offering multiple ways to pay, consider offering flexible payment plans, too. For example, setting up a payment plan to convert outstanding charges into a series of smaller payments can provide relief for your residents and give organization-wide visibility into when those payments will be complete.<\/span><\/p>\n A 2022 McKinsey & Company report found that \u201cnearly 9 in 10 Americans are now using some form of digital payments,\u201d so processing rent with your property management business shouldn\u2019t be an exception.\u00a0<\/span><\/p>\n In addition, many consumers are accustomed to using automatic bill pay systems that let them pay without manually re-entering their information every month. By enrolling in online payments, your residents will save time, and you have reassurance rents will be paid on time and in full. You can also encourage prospects to submit the initial application fee online to promote early online payment adoption.<\/span><\/p>\n In addition to almost 90% of Americans using some form of online payment, the same McKinsey & Company report also showed those \u201cusing two or more forms of digital payments has grown even more rapidly \u2014 from 51% in 2021 to 62%\u201d in 2022.\u00a0<\/span><\/p>\n With an online payment system that offers flexible payment options \u2014 such as eCheck (ACH), credit cards, debit cards, electronic cash\/money orders, and bank drafts \u2014 you\u2019re catering to your residents\u2019 payment preferences. <\/span>Data from the <\/span>2024 Renters Preferences Report<\/span><\/a> shows that flexible rent solutions are important to 66% of renters. Therefore, providing flexible options for them to pay online adds value to their overall experience.<\/span><\/p>\n Not to mention, <\/span>you\u2019re also making it easier for them to adopt online systems and processes faster. In short, the more ways residents can pay, the better chance you have of collecting rent payments on time.<\/span><\/p>\n As revealed by the <\/span>2024 Renter Preferences Report<\/span><\/a>, 80% of renters say they\u2019re satisfied with their property manager. That level of satisfaction can often be attributed to factors like streamlined processes and self-service offerings, such as online rent payments.<\/span><\/p>\n And the happier your residents are, the more likely they are to refer you to others. In fact, 88% of satisfied renters are likely to recommend their property management company.<\/span><\/p>\n Jessica Watts, Owner and Property Manager of Blue Key Property Management, has seen firsthand the positive effect her organization\u2019s adoption of online rent payments had with residents. As she explains,\u00a0<\/span><\/p>\n \u201cAll of my residents get set up and pay online. Once they start using the online portal, I think they come to appreciate it. I know they all love getting their deposit back electronically and quickly.\u201d<\/span><\/p>\n<\/blockquote>\n Offering the ability to make rent payments online is not only beneficial for keeping your current residents happy, it\u2019s also crucial for standing out from the competition and attracting new renters.<\/span><\/p>\n In fact, having the ability to take advantage of financial services like this are significant for most renters. According to the <\/span>2024 Renter Preferences Report<\/span><\/a>, 84% of renters say that offering online rent payments is important to them.<\/span><\/p>\n
By Brittany Benz<\/a><\/p>\n1.) Save time and money<\/b><\/h3>\n
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2.) Eliminate time-consuming accounting processes and reduce errors<\/b><\/h3>\n
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3.) Protect sensitive resident information with more secure systems<\/b><\/h3>\n
4.) Make more informed business decisions<\/b><\/h3>\n
5.) Streamline communication and transparency<\/b><\/h3>\n
6.) Promote rent payment accountability<\/b><\/h3>\n
7.) Boost efficiency with automated payments<\/b><\/h3>\n
8.) Give residents more payment flexibility<\/b><\/h3>\n
9.) Improve resident satisfaction<\/b><\/h3>\n
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10.) Attract new renters, especially younger ones<\/b><\/h3>\n
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