5 Tips for Getting Rent Payments on Time
Let’s face it, collections calls and follow-ups aren’t fun. They’re not only time consuming and uncomfortable, but not getting paid on time impacts their cash flow and bottom line. If you manage a property, here are a few steps you can take to improve the rental payment process and encourage residents to pay on time:
Tip #1 Give residents flexible payment options
The more payment options you make available to your residents, the more likely it is that they will pay you online and on-time. Compared to writing a check, paying rent online is fast, safe, and extremely convenient. In addition, you can offer your residents different choices for payment methods such as, ACH, debit cards, and credit cards (Visa, Mastercard, American Express). If someone prefers to pay cash, you can simplify that process for them as well, by offering a solution like CashPay. Residents can conveniently pay with cash from 25,000 retail locations while they’re out and about.
Did you know 1 in 4 renters spend more than 50% of their monthly income on rent? Residents shouldn’t have to worry about making their biggest monthly payment on a fixed schedule. By offering residents flexible rent payments, they can pay rent in installments, giving them greater control over their cash flow while your revenue remains protected.
Tip #2 Make it easy to enable recurring auto-pays
Any time someone can just set something up and forget it, you’re improving your chances of on-time payments. When you offer online payments you can typically also offer recurring payment options. This saves time for your residents by automating this task and taking it off of their to-do lists. And it saves you the headache of managing collections.
Tip #3 Automate payment reminders
Some residents have the best of intentions, but not the best attention to detail. The first of the month passes by, and they have forgotten to pay rent. To combat this, many online payment systems offer email and even text reminders. Your resident can simply click their reminder to access their account and pay their balance.
Tip #4 Accept payments over the phone
Make it easy for your residents to pay whether they’re tech savvy or not. Paying via a mobile app is a great option for some people. Calling and paying over the phone with a representative is more comfortable for others. You can’t keep your office open 24/7. Some payment providers like Zego offer 24/7 live support over the phone, including accepting payments.
Tip #5 Offer incentives such as credit reporting for on-time payments
Many residents are trying to save up for their own homes and setting up their path to home ownership by building their credit. Rent is often their biggest expense, so reporting rent to credit agencies is a great benefit to residents. Online payment companies like Zego offer credit reporting as an incentive to help properties attract and keep good residents, and as an incentive for residents to pay on time. Residents simply opt in to this option. Monthly rental payments through the payment portal are reported to credit agencies for inclusion in the resident’s credit history.
Bonus tip: Comprehensive statements and payment histories
In addition to rent, residents are also typically paying for utilities and other ancillary charges such as pet fees, parking, or clubhouse rentals. To enable 100% complete and on time payments, properties who work with solution providers like Zego can send their residents one comprehensive, itemized statement that includes all charges in one place, clearly detailed. This makes it easy for residents to understand everything they owe, and when it’s due. When combined with online payment solutions they can also simply click to pay online from their e-statement, saving time and improving on-time payment rates.
Ultimately, the easier you can make the online payment process for your residents and the more options you can provide, the more timely digital payments you’ll receive.