As a property manager, you may already offer your tenants the option of making rent payments online. And while some people will gladly save the cost of a stamp and the time it takes to write a check, the majority of folks won’t, for any number of reasons.
But as a property manager, the benefits of receiving online payments are plentiful enough that the more people who pay you electronically, the better for your business.
Not only are online payments often made on time, there are no hassles with lost or stolen checks, or insufficient funds. And there’s no need to endorse a stack of checks, then drive to the bank. Or fight with a tenant to get a bad check funded. Here are some ideas to encourage more residents to use this option if you allow online payments or plan to start.
• Hold a drawing for a prize. Enter the name of each person who pays their rent online in a monthly drawing for a restaurant gift card, gas card or other gift that offers good value.
• Let them know how convenient it is and how much time it saves, as well as the advantages offered such as a comprehensive payment history and the ability to schedule a payment in advance. In addition, they can set up automatic payments to be made every month without additional effort.
• Offer an incentive for those who pay online. This could be a free gift card, a free guest pass to the community pool, a couple of movie tickets, a video rental coupon, or another low-cost gift that shows your appreciation to everyone who signs up for online payments.
• Stress that paying online can save a tenant late fees because they can pay at the last minute and still be on time.
• If you’re really determined to have tenants pay online, you can charge a fee to those who won’t use the online service. While there may still be some who prefer to pay by check, this will draw in the majority of residents who don’t want what is essentially a rent increase. Be sure to verify that this is legal in your state.
Some tenants may never get on board the online payment train, but those who do will likely find the convenience of doing so well worth the initial reserve they had before they signed up.
What’s missing from this article is the cost… Isn’t that important?