Processing manual payments can get expensive. In fact, the average cost of doing so can run into tens of thousands of dollars each and every year. Not to mention how time consuming it can be. A great alternative that will save you time and money is accepting online rent payments, but you have to get people to choose this option for it to really pay off. If your current property management software offers an online payment portal, but you still haven’t convinced the majority of your tenants to use this option, here are a few ideas to help sweeten the pot a little.
Take the time to calculate out how much processing manual payments is actually costing you, and then use that figure to determine how much of a discount you can comfortably offer tenants for paying online while still saving money. Saving $10 a month may just make it worth your tenants’ while to choose online payments.
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Provide a grace period for online payees
When a tenant knows that they have until the 5th of the month to pay online versus the 1st for manual payments, the flexibility might be just what it takes to encourage that online payment.
Demonstrate the benefits
Put together a one page list of all the benefits of online payments, such as a time saver, that they’re more cost effective, that it’s better for the environment, and any other incentives that you’re offering to tenants that choose that option. Distribute a copy to all of your tenants.
Run a monthly raffle
Let tenants know that anyone paying online will be entered into a monthly raffle to win a gift card to a restaurant, coffee shop or other local business.
Make online payments easy
If you really want to encourage people to pay online, you’ve got to make it as easy as possible. Make sure you are employing the use of a quality property management software that offers a simple to use web portal that makes online payments fast and easy for your tenants.
Be a good landlord/property manager
Above all else, if you want your tenants to cooperate with your requests for online payments, always treat them with respect in return. Respond to maintenance requests or any other communications in a timely manner and keep the property clean and well-maintained.
With online payments, you could be saving a great deal of time and money – both of which could be better spent on growing your business and increasing profits. The first step is getting your tenants on board with this payment option. These 6 simple things will help you communicate the benefit of online payments and hopefully help sway your tenants toward this modern, efficient and cost-effective payment option once and for all.
Find out how technology can make life easier for your customers, your staff, and YOU!
Download a free copy of The Property Manager's Guide to Technology in the Management Office.