Let’s face it, collections calls and follow-ups aren’t fun for property managers. 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:
1.Give residents flexible payment options: Everyone is different and the more ways residents have to pay, the higher likelihood they’ll find the one that works best for them and pay you on time. Having the option to pay online is crucial. Paying online is fast, safe and easy. In addition, you can offer your residents different choices for paying such as, ACH, credit cards (Visa, Mastercard, American Express), PayPal or Masterpass. If someone prefers to pay cash, you can simplify that process for them as well, by offering a solution like PayLease CashPay. Residents can conveniently pay with cash from 25,000 retail locations while they’re out and about.
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.
3.Automate payment reminders: Your resident may have the best of intentions but still struggle with remembering to pay rent on time. 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.
4.Accept payments over regular and smart phones: Make it easy for your residents to pay whether they’re tech savvy or not. Paying via a smart phone is a great option for some people. Paying over a landline with a live human is much more comfortable for others. You can’t keep your office open 24/7. Some payment providers such as PayLease, offer 24/7 live support over the phone, including accepting payments.
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 PayLease 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.
6.Bonus: Comprehensive statements and payment histories: When you rent a home or apartment you’re not only paying rent you’re often also paying for your 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 PayLease 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 there may be times that your residents have a challenge or issue that doesn’t allow them to pay on time, but the easier you can make the payment process for them the higher likelihood you have of getting full, on-time payments every time.