Paying rent electronically or receiving owner disbursements by direct deposit are not new technologies, but people have been slow to adopt to these forms of payment. With the impact of Covid-19 still reverberating through society, current and prospective residents are demanding contactless options for paying rent.
The End of Paper Payments
Cash, check, or money order were the only acceptable forms of payment in property management for decades. Millennials quickly adopted alternative forms of payment, and Covid-19 has now pushed all generations away from paper and to digital alternatives.
- Cash – Previously “the King” of all forms of payment, cash has rapidly fallen from glory. There are numerous cash alternatives like Venmo, Apple Pay, and Paypal that eliminate the need to carry around dollar bills that have been who knows where.
- Check – Personal checks take days to process and may not be any good. Cashier’s checks guarantee that the tenants do have the funds but require that they go to the bank.
- Money Order – These eliminate the problem of potential bounced personal checks, but the tenant has to go to the bank or other location risking exposure to the virus or transmitting the virus.
The New Contactless World of Payment Options
Digital options for rent payments have been growing in popularity with tenants because of the convenience and immediacy. Similarly, property owners have increasingly shifted from receiving a check in the mail that they have to then go and deposit to having us deposit their funds directly to their account. Covid-19 has also accelerated adoption of digital options as it is a benefit to public health and risk reduction making digital payment options a win-win for everyone.
How does it work?
Spaces offers a full featured digital solution that benefits tenants and owners. Through our online portal tenants and owners have full access to see their accounts and make payments. Payment options include:
- Direct Withdrawal – This is the most popular option where the tenant provides their bank account information or 3rd party app to pay directly from a digital account.
- Credit Card – This option allows the tenant to use a credit card to pay rent online. There is an additional fee charged for processing.
- Auto-Pay – This is the same as Direct Withdrawal, but the tenant sets it up to recur every month. This insures timely payment every month.
In addition to providing a variety of digital payment options, our system generates statements and payment reminders to tenants to help ensure timely payment, which means owners receive their disbursements on time. Our Owner Portal saves owners from having to go to the bank as well. Here owners can see their tenant’s payment history and input their bank information for direct deposit to their bank account.
While we still receive some checks and money orders, it is quickly declining. If you own rental property, it is becoming increasingly important to offer a full featured digital solution as renters’ factor this into their decision when choosing a property to rent. Rent collection is the lifeblood for a successful real estate investment, and an online system is critical in rent collection. If you need an expert to help you adopt to the new day of digital payments, we are ready to assist you with our full suite of property management services. Contact us today for a free rental analysis and to see how we can take the burden of the day-to-day operations out of your real estate investment.