6 Tips for Collecting Rent with Property Management Software
When it comes to collecting rent, there can be tedious tasks associated with it. Not only are there scheduling hassles to navigate, but many tenants are inclined to pay in different ways. There seems to be no universal, streamlined way that makes collecting rent an easier and more efficient process.
Until now that is.
Collecting rent can cut into a lot of your time as a landlord. However, RentRedi provides top-tier features for landlords who are looking to make rent collection easier for themselves and their renters.
1. Offer different methods of rent collection
As mentioned above, different tenants will have their own preferred way of collecting rent. This makes the tracking and collecting process difficult for landlords.
Property management tech can be a way to provide tenants with their preferred method of rent payment. This includes ACH, card, or cash—all from one place. With RentRedi, tenants can opt for ACH, debit/credit card, or cash payment via Chime at over +70,000 locations.
For example, RentRedi’s “Rent” section offers an in-depth dashboard into which units have paid rent, which haven’t, and who’s overdue. You can also filter, sort, create reports, and export data for your accounting needs. Additionally, you can add on accounting software to manage all your financials and tax reports right from RentRedi.
2. Provide a safe way to collect rent
When it comes to collecting rent, you and your tenants will want to ensure that the money is safe and secure. There are a lot of liabilities that come with mailing checks or trying to keep track of cash.
So, when collecting rent online with property management software, you can provide tenants with a direct way of paying rent. Then, you don’t have to rely on the postal service or keep track of cash from different tenants.
Not only do you need to know who paid what, but you also need to ensure it’s documented. Using property management software means you can track your rent payments with one rental management app. And, you can still have renters pay rent their way.
3. Set up auto-late fees
Another great way property management software can be used to manage collecting rent is to set up automatic late fees. Many independent landlords struggle with how to enforce late fee rules. But, having the tech to automatically generate late fees & track them for you means the process is practically painless.
Keep in mind that every late fee operator will have different customizations. One option is add late fee rules by dollar amount or percentage amount. Another way to manage late fees (especially in compliance with your state laws) will be to set how many days late to start charging the tenant, when to stop, and what the max late fee can be.
4. Send rent reminders
Rent accounts for many tenants’ most significant payment. However, it’s easy for time to get away from us all and forget to pay rent. Rent reminders are a simple, automated way to easily ping tenants when rent time is approaching. Another option is to have the renters also set up reminders.
Property management software offers both parties the opportunity to set up rent reminders and make it easy to automatically send.
5. Ask tenants to set up automatic payments
The tediousness of paying and collecting rent can be easily mitigated with automatic payments.
A feature not available via traditional payment methods (such as check or cash), property management tech empowers tenants to create rules of when and how much rent to pay automatically.
6. Offer credit boost as a way to encourage on-time payments
Credit reporting with property management software is a true testament to the benefits for landlords and tenants. In the renting world, rent reporting is typically only available for large rental operations, and not the smaller, mom-and-pop landlords.
However, tech like RentRedi offers tenants the ability to add on credit boosting. This acts as both an incentive and reward for on-time rent payments. Payments are reported to TransUnion and Experian, and can improve credit scores.
Collecting rent—streamlined with tech
In general, using property management software can be one the best ways to collect rent. It is easy and secure. Additionally, it provides many benefits for landlords and their tenants—such as automatic payments, late fees, and rent reporting.
However, when it comes to nailing down the perfect property management software for your business, you’ll want to ensure it’s
- Scalable
- Affordable
- Easy to use
RentRedi offers landlords and tenants the ability to scale their renting experience to the next level with one app. Additionally, we offer world-class customer support that leaves landlords with a smile on their faces. 🙂 (And their tenants too!) Check out our reviews to see just how easy our property management software makes collecting rent.