Accept Online Rent Payments – Propertyware

Bitcoin Use Is on the Rise. What Does That Mean for Property Managers?

Jake Belding — Tue, 22 Feb 2022 15:47:39 +0000

In April, 2021, California real estate billionaire Rick Caruso announced his company would begin accepting Bitcoin for rent payments. In March, Morgan Stanley announced it would provide access to Bitcoin funds for wealth management clients, making it the first U.S. bank to do so. What once seemed like a shady currency meant for the darker parts of the web is now going mainstream. In fact, 16 percent of Americans have invested in cryptocurrencies such as Bitcoin, according to a Pew Research study, and even entire nations are giving it legitimacy. With Bitcoin and other cryptocurrencies growing in popularity, more real estate investors and property management companies may follow Caruso’s lead, allowing tenants to pay their rent in crypto. In fact, there are already rent apps that make it possible. It’s easy to feel the pressure to jump on the bandwagon and accept it as an option for rent payments. If your owners or investors are interested in cryptocurrency, or if you’re thinking about getting in on Bitcoin yourself, there are some questions to ask first. Let’s explore exactly what cryptocurrency is, how it’s used, and what property managers should consider before investing.

What is Cryptocurrency?

Bitcoin is just one many different kinds of cryptocurrency (crypto) out there. Crypto refers to any digital currency that is secured by cryptography using blockchain. Basically, it’s virtual money held in a network of shared databases that are encrypted not only for security, but also to keep a record of each transaction in a digital timeline.

What Is Blockchain?

Blockchain encryption records data in “blocks” that you can imagine as buckets. When the bucket fills to the top, information flows into the next bucket, and the two buckets are linked in chronological order. For that reason, blockchain is mainly used to store financial information, such as ledgers and crypto transactions. It’s also used to execute smart contracts, where an action, such as the release of a security deposit, doesn’t take place until a condition is met, such as an apartment inspection. When someone invests in crypto, their shares, so to speak, are held in a crypto wallet until the owner converts them into currency such as the U.S. dollar. Wallets are secure digital storage devices that use both a public key, or address, to which people can send crypto to you, and a private key, or digital code held only by the wallet’s owner.

How Do Crypto Payments Work?

Although it’s referred to as a currency, crypto doesn’t work like dollars or euros at the moment. The only exception to that rule is El Salvador, which has adopted Bitcoin as legal tender. Crypto currencies such as Bitcoin are actually purchased through exchanges, much like stock. The value of crypto moves up and down like stock, as well.

So how does that work for rent payments?

If a tenant pays rent in crypto, they’re simply transferring some of their shares to you, usually via an app. Through the app, owners or property managers can then convert crypto to dollars.

The Pros of Crypto

There certainly are aspects of cryptocurrency that make it appealing. If an owner or investor is weighing their options, here are some pros you can offer them:

Security

At the moment, crypto is stored and distributed over a network of databases that are outside of the control of governments, banks, and other regulating institutions. While that makes investment in crypto somewhat risky, it also guarantees that the currency won’t collapse at a single point of failure, such as a bank going out of business (think Lehman Brothers). And while nothing is totally hack-proof, its blockchain storage system makes it pretty difficult to break into.

Convenience

Since the beginning of the pandemic, the demand for contactless, on-the-go transactions has gained incredible momentum. Crypto provides yet another convenient payment option property managers can offer their tenants. Because of its decentralized nature, there is no third party to go through for money transfers, making transactions from the tenant to the property manager or owner quicker. If you manage properties overseas, cryptocurrency makes international money transfers easier, as well.

Investment

Cryptocurrencies are more of an investment opportunity than a way to pay the bills. Because they function much like company stocks, with fluctuating value, they’re meant to be held onto until you can cash out when the price is high. If you’re a larger property management or investment firm looking to experiment with different investment opportunities, allowing rent payments in Bitcoin, for instance, can get you started in cryptocurrency.

The Cons of Crypto

Bitcoin and other cryptocurrencies get a lot of hype in the media, which may pique your owners’ interest. It’s worth informing them of the risks that are involved, however. And there are a few.

Risk

Of course, the fact that there are no regulating bodies and that cryptocurrency is, essentially, a virtual currency poses some risks. First, while it’s incredibly difficult to hack blockchain networks, it’s not impossible. According to an MIT report, hackers stole almost $2 billion in cryptocurrency between 2017 and 2019, mainly from exchanges. Should a hacker or scammer gain access to your wallet, you could be wiped out in seconds. Like the stock market, the volatility of cryptocurrency poses some risk, as well. If you don’t convert your Bitcoin at the right time, you could lose money.

Lack of Immediacy

As we mentioned earlier, cryptocurrency is not meant for daily transactions. In fact, it can take up to 10 days to convert Bitcoin into dollars. If you or your owners are collecting rent to pay the bills, Bitcoin isn’t going to help. Instead, look at Bitcoin as an investment opportunity. If an owner or investor is keen on offering it as a payment option, they should ensure they have enough money coming in through traditional rent payments to allow them to take on some payments as investment only.

Difficulty Tracking

Bitcoin and other cryptocurrency users are anonymized using a numerical code and different public keys for each transaction. Transactions, therefore, can’t be traced back to the user. That’s bad for two reasons. First, if you have a dispute over payments for services rendered and your client paid with Bitcoin, there won’t be any public record of the transaction, making your case hard to prove. Second, if you are sent the wrong amount by mistake, the transaction is irreversible.

No Government Regulation

If you make a transaction using traditional U.S. dollars, you have the FDIC and other bank regulations to protect your money. Not so with cryptocurrency. Because there’s nothing regulating transactions, you have very few legal protections.

How Property Manager Can Approach Crypto for Rent Payments

In early 2020, almost no one in the property management space was thinking about cryptocurrency. Now, however, the idea of a virtual currency that allows for quick, contactless payment is more appealing to property managers, owners, and tenants alike. Even if you’re not ready to dabble in crypto payments, you may come across an owner or investor who is. Having a knowledge base that can help guide them will add value to your business. And if you have the flexibility to move into crypto payments for interested owners and investors, all the better. Property management companies with no investments of their own will have to figure out transfer rent money paid in crypto to owners and investors. While crypto transactions are quick, creating a new process may take time. If you’re in a position to experiment with cryptocurrency as an investment opportunity, keep an eye on the market and plan your entry carefully. As with all investments, weigh the risks against the benefits before you jump in.

Rent Payment Options: Why Online Payments Will Now Dominate

Murphy McNutt — Tue, 23 Jun 2020 23:52:48 +0000

By Laurie Mega

Even before the coronavirus outbreak, rental payments were going through something of a revolution. The once ubiquitous check or money order has been giving way to more secure and immediate forms of payment, from credit cards to payment apps to online portals. There were several reasons for this, from sheer convenience to security, to the demand for mobile availability from millennials and Gen Z. The current pandemic is now the straw that broke the camel’s back. As property managers search for ways to keep their businesses running and their residents happy while practicing social distancing, mobile and electronic payment options are becoming a more appealing choice over paper checks, money orders, and cash that requires interactions with residents, bankers, and postal workers. So will online rent payments eliminate more traditional options? We think they just may.

The Pros and Cons of Traditional Rent Payment Options

Traditional rental payments are still popular, especially with certain demographics. Cash, Check, or Money Order In a 2014 study by the Federal Reserve Bank of Boston, the most recent data, 22 percent of American renters paid with cash, 43 percent paid with check, and 16 percent paid with a money order. In a 2017 survey, the FDIC found that 25 percent of Americans either don’t have a bank account or use financial services outside their bank account to make payments. And half of them said it was because they don’t have enough money to keep a minimum balance. Paying with cash or purchasing a money order are still go-to methods of paying the rent with low-income renters. Or they may pay through a walk-in payment system (WIPS) available at many chains or big box stores. With a WIPS, residents pay in cash at a participating store. The store then transfers the money directly to the property manager. For residents who do have bank accounts, money orders and certified or cashier’s checks have traditionally been preferable for both property managers and residents. Both cashier’s and certified checks are guaranteed by the bank that issues them, which means they won’t bounce. Money orders also guarantee funds. All of these methods are trackable, so there can be no dispute overpayment.

The Disadvantages of Traditional Payment Methods

All of these payment options may serve your residents best. But there are disadvantages for both residents and property managers with each of these. First, cash is hard to trace. Even with banking statements and deposit slips, it’s easy to lose track of cash payments, especially if you’re getting the same cash amount for multiple tenants. There’s no name or check number attached to cash, after all. Personal checks can bounce. And certified or cashier’s checks can be a hassle to obtain and cost your residents extra money (up to $10 per check). Money orders, too, cost a little bit extra (up to $5 per order), and as with WIPS, your residents have to go to a physical location to get one.

Traditional Payments and COVID-19

And that’s the final nail in the coffin for payments of these types. They have to be made in person or sent through either a store, a bank, or the mail. Experts now fear a second virus spike could happen in the fall and winter of this year. And a vaccine will not be available to the public for at least a year, by researchers’ best estimates. That means social distancing will remain the norm for some time to come. The fewer residents and property managers have to come in contact with each other, the better. And rent payments is one area where property managers can proactively reduce infection risk.

Electronic Payment Options

Electronic payment options eliminate the need for contact. But there are some facts.

Credit or Debit Card

In April 2020, credit card payments for rent were up 30 percent over the previous month as people avoided going out for even the simplest walk to the mailbox. Credit and debit card payments are indeed becoming a more popular way to pay for rent. Not only is it convenient, but residents with cashback or points cards can benefit from a large, regular charge to their card.

Wire Transfer

Some property managers allow wire transfers, but this isn’t really a good idea. In order for a wire transfer to happen, you would have to share account and bank routing information with your residents.

Online Payment

Millennials now make up a large portion of the rental market, and their preference for online and mobile convenience is well known. At the same time, Gen Z, who have never lived in a world without the internet, are starting to enter the rental market. These new populations, coupled with the new need to remain socially distant, are driving a surge in popularity with both payment apps and online portals. There are a whole host of payment apps you can use to charge and collect rent money from tenants, but you should really use a payments platform integrated with your property management system so that you don’t have to rekey entries, eliminating potential mistakes. Pro Tip: If you use a payment app for rent, spell out in the lease which app you use, what the service charge is, and how that affects the rent. You may even want to look into an online portal for charging and accepting rent. Online solutions such as Propertyware handle rent payments seamlessly while providing a whole host of other services for residents, owners, and property managers. You can use them to sign and store lease agreements and other documents, track work orders, send messages to residents, and the PMC can even interact with owners through their own portal. There will still be resident populations who will use more traditional forms of rent payment. But as younger renters flood the market and the current pandemic continues to act as a catalyst for change, online payments just may replace check, cash, and money orders as the principal way residents pay for rent.

The post Rent Payment Options: Why Online Payments Will Now Dominate appeared first on Propertyware.

How to Reduce Rent Processing Time by up to 42% – While Thrilling Your Residents

pwadmin — Tue, 19 Sep 2017 10:20:37 +0000

These days, most people greatly prefer to take care of business online. In fact, it’s becoming unusual to see people writing checks. So why should it be any different when it comes to paying rent? Online rental payments are a huge hit with renters, allowing them to pay when, where and how they want to – by credit card, debit card, e-check or ACH – even using their mobile devices! You get paid more quickly, and there’s no more manual check processing to burden your staff. And, paying vendors and owners is faster and easier too. Everyone wins. There are no processing fees for you to pay, and Propertyware Payments more than pays for itself in saved time and hassles. If you’re already using an online rental payments system other than Propertyware’s but are a Propertyware user, you’ll make a huge leap in efficiency by switching to our solution to take advantage of integration with your core software. No more double entry or importing of data. What’s more, Propertyware Payments is completely integrated with the owner and tenant portals, and lets property managers and owners view their ledger balances anytime, anywhere.

Rescuing the first week of every month

Traditionally, the first week of a property manager’s month has been dominated by check processing. Propertyware Payments reduces this time drain by up to 42%, freeing your staff for more productive tasks. Of course there will be those tenants who still prefer to pay by check; but Propertyware Payments incorporates check scanning, which matches the checks to tenants and enters their payments, extracting the information it needs for the bank and tenant ledger. No more time-consuming, error-prone data entry, copying, filing and trips to the bank. An automated rent reminder helps ensure renters get the payments in on time. And Propertyware Payments gives you a heads-up if there’s eviction or collections activity in progress.

Easily transact with owners and vendors

You’ll be able to quickly and easily pay vendors, make owner disbursements and accept owner funds for repairs and other costs. Vendors appreciate the quick, accurate online payments and reward you with loyalty and better service, and owners love having online visibility into all payment activities through the Owner Portal.

$11 billion worth of confidence

Propertyware Payments is powered by RealPage, which processes more than $11 billion in payments annually. So you can be certain your transactions will be secure. With all these advantages, it’s easy to see what a huge return Propertyware Payments can deliver. Talk to your Propertyware representative about putting it to work for you today!

The post How to Reduce Rent Processing Time by up to 42% – While Thrilling Your Residents appeared first on Propertyware.

Handling Money for Rental Properties

Leah Mendes — Wed, 31 May 2017 17:57:52 +0000

Handling money electronically has tremendous value not only for tenants, but also for owners, vendors and property staff. In this article, we’ll explore top considerations for managing money for your rental properties, including both tenant and owner funds.

Handling tenant funds

Handling tenant deposits can be a more complicated subject than you might think. State laws vary when it comes to the amount, deadline for returning after your tenant vacates and the acceptable bank account types used for securing the funds. For example: Texas has very little on the books regarding the handling of a tenant security deposit. There is no maximum amount allowed for security deposits or for pet deposits. The only thing stated implicitly is that the security deposit must be returned within 30 days. However, in Pennsylvania, the statutes are lengthy and specific. As an example, a maximum security deposit for the first year of rental cannot exceed two months’ rent and after the second anniversary of giving the deposit, the tenant is entitled to the interest earned. The property manager or owner must maintain a separate security deposit account, and after two years, funds over $100 must be deposited in an escrow account in a federally or state-regulated institution. The laws governing rent payments vary from state to state as well, from whether or not a notice is needed on a rent increase to the maximum charge permitted for a late fee. In Arizona, for example, there is no notice required when raising rent, but in Minnesota, the landlord must give written notice one rental period plus one day prior to the change. As late fees go, Maine allows a charge of no more than 4% of the rent amount and only if the landlord notifies the tenant at the time of the rental agreement signing. In Tennessee, late fees may climb as high as 10% of the rent. Whether you receive funds physically or electronically, the rules apply. With electronic rent payment, there are additional benefits and potential problems to consider. Can you legally require your tenants to pay this way? What about late fees?

Handling owner funds

Owner funds are another animal all together. Few laws exist governing property manager and property owner business relationships. This is on you to make sure that your business practices regarding your client’s property and money are treated with precise scrutiny, otherwise your business could develop a bad reputation. A good property management software can help you be a stellar partner to your property owners. Being a meticulous record keeper is key. An ability to provide a clear audit trail for all funds for each property you manage will help with everyone’s peace of mind. Agree ahead of time on when you will mail checks and statements to your clients and stick to it! For an in-depth look at these potentially puzzling issues from electronic payment and processing regulations and the entities involved with them to the laws that impact your business, join Matt Davis at our RealWorld Conference this July, on Monday the 17^th at Wynn Las Vegas.

The post Handling Money for Rental Properties appeared first on Propertyware.

A Smooth Move Out Starts With a Well-Planned Move In

Leah Mendes — Thu, 11 May 2017 11:07:00 +0000

Thinking about a tenant’s move-out process before they even move in may feel like putting the cart before the horse, but property owners and managers should use the pre-lease interactions with a prospect to clarify aspects covering the entire life of the lease. Smart planning and precautionary measures now will help contribute to an easier – and cheaper – transition at the end of the tenancy.

Screen prospects thoroughly

The first step to ensuring a smooth move-out process is to choose trustworthy, high-quality tenants, which makes thorough screening a must. In addition to conducting a credit check, contact all references listed by the applicant. To simplify the process, consider using online tenant screening to document all tenant and application information.

Explain the security deposit

Some prospects, especially those with limited rental experience, might not know the purpose of a security deposit. By explaining how the refunded portion of the deposit depends on the tenant, you preemptively incentivize the renter to take better care of the unit and move out according to lease stipulations. This discussion will also provide the opportunity to clarify what constitutes normal wear and tear. By putting the expectation in writing, you avoid tenants arguing with you later when you deduct from their security deposit for badly stained carpets or scorched stovetops.

Detail tenant responsibilities

Don’t leave any ambiguities with regard to upkeep. Use part of the lease to clearly explain the occupant’s maintenance responsibilities as well as those covered by you and your maintenance providers. To help protect your property, you should additionally include a process for maintenance requests and a timeframe during which the tenant must notify you of new issues. Property maintenance software can help with this process. By attending to maintenance concerns quickly, you’ll fix minor problems before they become more costly.

Supply a move-out checklist

Whether your renter signs a three-month lease or plans to stay for years to come, you should provide a checklist of what they’ll need to do before moving out. Typical requirements may include keeping all utilities active until their move-out date, having the carpets cleaned, returning any painted walls to their original colors, disposing of all trash and debris, replacing any burned-out lightbulbs and having working batteries in all smoke detectors.

Keep the lines of communication open

Do your best to maintain open and honest communication throughout the entire tenancy. Rather than juggling random text messages and emails, consider using a tenant portal, which will make communicating easier while tracking all questions, issues, repairs and scheduled maintenance in one place.

Use property management software

While taking a proactive approach to setting expectations for your tenant will save you plenty of headaches, utilizing property management software can save you time as well. You can streamline everything from move-out inspections to security deposit returns with a single system that lets you manage and document the entire process. Learn more about the time – and money – you can save with the solutions available through Propertyware.

The post A Smooth Move Out Starts With a Well-Planned Move In appeared first on Propertyware.

The Value of Online Payments for Tenants, Owners and Vendors

Leah Mendes — Wed, 22 Mar 2017 20:51:48 +0000

While other industries adapted quickly to online payment systems, many property management companies still insist on paying and receiving money with old-fashioned paper checks. However, as more millennials – some of whom have never even written a check – move into rental housing, wider ranges of payment options have gained traction. Online payment systems deliver so many benefits, among them:

Offering tenants a welcome convenience
Reducing late rent payments
Slashing time spent processing payments
Simplifying the accounts payable and receivable processes with vendors and owners

No more excuses

“The check’s in the mail” is a refrain so common it has reached the level of cliché. And in truth, over 5 percent of mail really doesn’t arrive, either because of a bad address or (less commonly) being lost in the postal system. Other reasons for late payments include questions about extra fees and uncertainty about the point at which late fees accrue. A tenant portal can answer all these questions 24 hours a day, and the system features online payment capabilities, letting renters see everything they owe and pay it on the spot (more on that in the next section). If they pay late, the late fee shows up immediately, so they don’t neglect to send it or have to call the office for the amount.

Accept credit cards, checks, ACH and more at no cost to you

With an online payment system, you can accept credit/debit cards, electronic checks/ACH, consumer checks and money orders. Renters choose their own convenient way to pay. They can also easily schedule recurring payments, allowing them to take a set-and-forget approach to making monthly rent payments. While many property managers resist accepting credit cards due to fees, online rent payment software from Propertyware builds a modest “convenience fee” into the online payment, redirecting the fees away from the property manager. Consumers, mostly accustomed to such online convenience fees, rarely complain about the minor addition. You enjoy the convenience without any cost.

Take a big burden off your staff

Online payments don’t just benefit your tenants. They act as a boon to your staff as well because the payment information goes directly into your accounting system, eliminating data entry and reducing opportunities for errors and misunderstandings. Of course, some tenants will still elect to mail or drop off paper checks even after you’ve launched online payment options. However, online solutions still eliminate the endorsing, copying, filing and trips to the bank that traditionally weigh down property management staff during the first week of every month. In fact, new check scanning systems can reduce time spent by over 40 percent.

Owners and vendors love online payments

An online payment system allows you to easily accept funds from owners and disburse to them as necessary. Owners can check their balances and make contributions by credit card or ACH. Because these online payments and disbursements integrate with your accounting system, your staff can skip the data entry. And email alerts keep owners up to date on financial status. Vendors love receiving payments and payment notifications right on schedule, with the money deposited directly to their account of choice. Move your work order and invoicing system online as well to virtually eliminate the mountain of paperwork once associated with property maintenance. What makes online payments such a strong addition to your arsenal as a property manager is that it benefits all four major constituencies involved in the business: you, the tenants, the owners and the vendors who service the properties. Everyone wins, and the technology more than pays for itself in time savings alone, not to mention the goodwill you build with all parties involved. Learn more about setting up an online payment system for your properties.

Click here to see how Propertyware can make accepting online rental payments a breeze by viewing an online demo today.

The post The Value of Online Payments for Tenants, Owners and Vendors appeared first on Propertyware.

How to Simplify Rent Week

Leah Mendes — Fri, 03 Mar 2017 17:34:07 +0000

We’ve all heard the dreaded “The check is in the mail” line on rent week. It is so cliched, that it is cringe worthy, but sometimes true. Even the most reliable tenant forgets or experiences tight finances, necessitating a last-minute dash to the post office or to your office to pay rent on time. Unfortunately, that is not the end of the most hectic week of the month. The hours spent logging the checks and making the trip to the bank for the deposit – and you’ll be lucky to do it in one trip – adds unnecessary strain to your busy life. With broad and easy access to technology, a better way exists for both you and your clients. Switching to an online rent payment system can be a scary proposition, but the payoff in time and money is well worth a little effort in the beginning. Once you’ve decided to do business electronically, there is only one thing left to do… get your tenants on board!

Use email reminders to build a functional relationship

As soon as you have your tenants’ email addresses, it can be tempting to overdo it: to email them about every little thing. Resist that compulsion. We tend to see many recurrent incoming emails from the same company or person as spam. Your tenants’ email may even begin to mark your emails as spam. Send them one or two substantive emails per month unless they have contacted you with specific questions, comments or concerns. One example of a useful, substantive email is a monthly reminder about rent to which you can add other reminders or event information. Creating a catchy, unique headline works wonders when you want people to open your email. Make your headline a question, or otherwise imply that the content is exclusive to them. This simple step enhances the likelihood that your residents will engage with the content of the email. If you know your audience well enough, personalize or tailor the content to them, which demonstrates that the management is invested in their well-being.

Make social media work for you

Almost every one of your tenants has a Facebook account. Consider creating social media pages for your property management company for updates and reminders. It does take a certain amount of trust for a person to let you into their private, online world through a friend request but following a page is non-invasive and easy. Alternatively, you can state on your monthly or bi-monthly email to your tenants that the Facebook page is available for more immediate updates. Twitter is another service that can be ideal for rent reminders and maintenance notifications.

Make it attractive

The obvious answer here is convenience. For most tenants, the rent check may be the only check they write all month. Saving precious time will be a selling point as well. We seem to have so little time in the modern world. Being able to save someone a little of that is a big deal! The small things also add up. If the tenant is only driving to the post office to mail the check, saving a little gas money won’t seem like a huge thing, but point out that over time, they’ll be saving money on gas, stamps, other mail paraphernalia. It all adds up.

Give your tenants options

Electronic check/ACH, one time debit, recurring debit, credit card options all make your tenants feel like they are in control of the process. That control translates into punctual payments. Assuage fears about the security of online payments through information. Some people are still afraid to do business online. The best way to handle this is to educate your clientele on the safety of your online system. If they need assistance because they are not digitally inclined, offer a service to assist them setting up an online rent payment account. If the client remains unwilling to risk using an electronic check, credit card or bank card online, discuss the possibility of using a prepaid card with them.

Require it

If it is legal to do so where you do business, consider making electronic payment the only way you accept rent. Requiring digital payments on the lease agreement is a great way to make it clear up front. Pointing the stipulation out and even encouraging them to sign up before they move-in are all smart ideas.

The benefits of online rent payments for property owners

As a property manager, you can give your clients peace of mind and the convenience they want. Everything is integrated: disbursements, online contributions and vendor payments. You can receive electronic notifications regarding deposits and when a tenant has given notice to move out. Tracking these events online consolidates receipts and other important paperwork, which simplifies your business.

Learn more about how Propertyware can help to simplify your property management business by taking a free tour today.

The post How to Simplify Rent Week appeared first on Propertyware.

4 Ways Property Management Software Can Reduce Late Rent Payments

Marc Eiting — Wed, 22 Feb 2017 10:00:00 +0000

Late rent payments are an inevitable part of our business, and one of the more uncomfortable to deal with. Slow payment impacts cash flow and chasing rent down wastes your valuable time. But property management software can help you greatly reduce the frequency of sluggish payments. Before we get into four ways software will help you deal with this problem, however, let’s start with one that has nothing to do with software: how you communicate the importance of paying rent on time, right up front. Too many property managers simply assume it doesn’t bear mentioning that rent should be paid on time because it goes without saying. The problem with this attitude is that property managers have varying levels of leniency when it comes to timely payment, and many renters will test these limits. It’s not always their fault: sometimes they’re going through a rough patch. But if you begin to make exceptions, you’re asking for rent payment to become a fuzzy area that gives you lots of headaches. If you choose to make exceptions, be sure to limit them to truly exceptional circumstances.

Be Polite But Firm On Expectations

At the time of lease signing, be polite but firm that rent needs to be in on time. If you’re managing properties for others rather than your own properties, you won’t have as much latitude to show leniency. This can work to your advantage in a way, since when renters know it’s not you being “tough” – that you’re working on behalf someone else with their own rules and accountant – they know there’s not so much you can do about it (“Hey, I just work here!). Some property managers communicate at the point of leasing that the accounting system is rigid and that late charges, penalties and (ultimately) the giving of a notice of eviction are not something that can be played with due to “how things are set up.” There’s no need to get technical. The important thing is that you don’t simply leave it at letting renters know the amount of rent and date due each month. Instead, make it clear in a polite way that the accounting is set up in a way that rent must be paid on time. Later, if there truly is an emergency and you want to make an exception, it’s your choice (or the owner’s).

Tenant Screening: it’s not all created equal

The best way to reduce late rent payments (or rent not being paid at all) is of course not to rent to people who don’t pay their rent! Obviously, you already check applicants out but particularly in single-family property management, there’s a huge range of screening methodologies, from a simple credit check and perhaps a reference or two to a comprehensive tenant screening solution. The relatively low cost of online screening is virtually always worth it since these systems check credit and criminal databases to find data critical to making rental decisions. Since they’re objective, they also give you a level of protection against Fair Housing claims of discrimination. Propertyware’s screening solution offers something that none of the others does, and it directly reflects the likelihood an applicant will pay their rent. It taps into the rental payment histories of over 20 million tenants nationwide. Why is this so important? Because rental payment history is the #1 indicator of whether someone is likely to pay their rent or not – more accurate even than credit history. The reason is that people place various levels of importance on paying their rent on time (or walking away from a lease). Sometimes people with mediocre credit show perfect records of paying rent on time, demonstrating that they consider it a critical priority. Others might have pretty good credit, but an imperfect record of paying their rent. Don’t let someone who has always paid their rent walk away while accepting another with somewhat better numbers but a history of slow rent payment.

Online portals keep communication clear

Property managers who communicate well and have a good connection with tenants are more likely to be paid on time than those who seem remote (assuming they aren’t too friendly and put themselves in a position to be taken advantage of). Clear communication is where a tenant portal comes in. Tenant portals deliver an array of benefits but in this case, we’re addressing specifically their impact on timely rent payments. The portal isn’t just a place to communicate with management; it also clearly lists rent, fees, deposits and other amounts due, and on what schedule. It’s also a great place for reminders of overdue rent. So there’s no gray area, and no need for a tenant to dig their lease out of a drawer somewhere or call to check where they stand.

Portals are for payments, too

There’s another aspect of tenant portals that reduce late rent payments: they make paying rent and other fees incredibly easy. Renters can pay online at their convenience, using a credit card, ACH or other means. The inconvenience of writing a check and mailing or dropping it off at an office is a common reason for late payments, and the online payment system eliminates this completely. Renters receiving a rent reminder or late notice via the portal can simply jump right to the payment feature and get it taken care of.

Become more aware of late payments

Your property management software should seamlessly integrate your accounting with your property and tenant information. You see not only the invoices and expenses that come in for a specific property, you also see the accounts receivable. This gives you a heads-up when tenants have neglected to pay their rent, and allows you to easily track what’s due and ensure that you follow up, especially if this is a pattern over time – as your software will quickly show you. These tips will help you keep those payments coming in the way they should, with a minimum of emails, calls, pleas, and threats. Implement them and you’ll find your life and cash flow is markedly improved! Learn more about Propertyware’s online rent payment solution in this free demo today.

The post 4 Ways Property Management Software Can Reduce Late Rent Payments appeared first on Propertyware.

Mastering Online Tenant Payments for Single Family

Leah Mendes — Mon, 26 Sep 2016 17:07:19 +0000

Single family property management companies have much to gain from using online payment options. Instead of chasing down checks during rent week, property managers can easily track which tenants have paid, and when, using an online system. This fast, convenient option is also ideal for tenants who can choose their preferred payment option and pay rent on their own schedule. At the same time, making the move to online payments can be confusing and expensive if the right system is not in place. Property managers often fear that payment processing will become difficult, extra costs will be incurred, or their business will be exposed to legal risks upon switching. So how do you determine what payment options are best for your single family business? In this article, we will explore the ins and outs of online payments to help you decide.

Evaluating the Risk of Online Payments

While tenants enjoy the convenience and flexibility of online payments, property management companies often take on the burden of the additional cost and legalities. Transaction fees can be as high as 3.5% and since the average monthly rent for a U.S. single family home is $1,500, this adds up quickly. On top of the extra cost, property managers must thoroughly research all related laws to stay compliant and protect their business. For example, property managers must determine whether it is legal to place surcharges and convenience fees on credit and debit card users, otherwise forcing the property management company to foot the bill.

Managing Tenant Payments with Ease

How can you provide tenants with the flexible payment options they need, without exposing your company to legal and financial risks? Enlist the help of an accredited payments provider. The right solution allows tenants to pay rent and other fees electronically and supports multiple methods of payments, making tenant collections less stressful for everyone. Propertyware Payments is an electronic rental payment-processing platform that makes collecting rent and fees fast, easy and convenient. With the ResidentDirect service, powered by RealPage Payments Services (RPPS), tenants will see a transaction fee that is charged when they pay on a self-service tenant portal. By shifting the responsibility for these extra costs away from your company, you can reduce operating expense while giving tenants convenient and affordable payment options. RPPS is PCI Compliant to help protect your business from legal risk. RPPS is also a licensed money services business registered with the U.S. Department of the Treasury and state banking regulators in 49 out of 50 states. As a result, RPPS has you covered even if you manage properties in multiple locations across the U.S.

Simplifying Owner Disbursements and Vendor Payments

Tenants aren’t the only ones who need access to online payments. As a property manager, you understand the importance of providing owners with online access so that they can check their balance and make contributions to their portfolio. You also need a way to pay owners and vendors quickly and easily. With Propertyware, online contributions, owner disbursements, and vendor payments are integrated with the owner ledger so data doesn’t have to be entered more than once. Notifications are also automatically sent out to owners and vendors when payments are pending, so everyone stays on the same page.

Choose an online solution that supports hassle-free collections and payments. Learn more about how Propertyware Payments can benefit your business by taking a free tour today!

The post Mastering Online Tenant Payments for Single Family appeared first on Propertyware.

New Study Implications for Online Rent Payment

Marc Eiting — Thu, 22 Sep 2016 15:00:00 +0000

Roughly 1 in 4 U.S. adults don’t always pay their bills on time. Among 18 to 34 year olds, just over half are paying their bills on time.* Are you ready for the easy way to collect rent? *NFCC 2015 Financial Literacy Survey

Make It Simple to Accept Rent Payments Online

“I need to order new checks, so my rent is going to be a little late. I hope you understand.” According to the Bigger Pockets blog, online payment systems leave “little room for discrepancies and eliminates inconclusive arguments between the landlord, tenants, and property managers.” With simple electronic rental payments, tenants can login the day the rent is due and pay. The online payment system tracks who’s paid and who hasn’t and is quick and easy, eliminating the chance of a check getting lost in the mail.

Move all rent collection online to simplify property management.

Track Tenant Payments and Sync With Accounting Software

Do you know who’s late with the rent?

Chronically late or missing rental payments can bring your business finances to a standstill. With property management software, you can track late or missing rental payments so that you know who’s paid and who hasn’t. Choose property management software that syncs with popular financial software programs such as Quickbooks so that you can organize your finances and have them connect with individual property management accounts.

Make Payments Visible With Tenant and Owner Portals

When payments are visible online, tenants know exactly what they’ve paid.

Tenants can also see late charges or other additional charges so that additional payments aren’t a surprise. Tenant portals allow tenants to see their history with your company. Owner portals do the same for owners, allowing owners to look at the costs and the payments associated with each property. According to About.com, “if you live far from your rentals, hiring a third party to collect the rent or an electronic funds transfer may be better options for you.” Electronic funds transfer makes it easy for you and your owners to see who’s paid what. Clear information simplifies rental payment discussions.

Stay Covered When Rent Payments Go Awry

What happens when a payment doesn’t occur as planned?

You need to be able to quickly scan for missed payments and calculate late charges or other penalties. Get your software to do this for you. Your software can make collecting rent simpler even in more complex situations where deposits or other fees are due.

Online Rent Payment Solution from Propertyware

Our tenant management software will help you connect with tenants and track their payments over time. It will even make it easier for you to confirm rent payments with owners.

View a quick tour of Propertyware to see how our property management software can help increase the number of on-time rental payments that you receive every month.