What is the factor that drives the success of the rental property? Timely rent payments and an efficient system for rent collection. But is there any way out to ensure that you are receiving timely payments?
After all, it is true that nobody wants to be stuck in the hassle of chasing tenants to collect the rent. The worst part is: Hearing the excuse by them that the payment is lost in the mail. As the rental industry is evolving, so is the process of rent collection. Modern tenants also expect a simplified version of paying rent and not missing out on the deadline of payment. Keeping that in mind, we have written this blog for you.
But before going any further, why were online methods developed, and what were the problems with the traditional ones? Let’s find out more.
Why Could Analog/Traditional Methods Prove To Be A Disadvantage?
Long gone are the days when landlords used traditional/analogue methods to collect rent from their tenants. Undoubtedly, the rent collection process was a labour-intensive one, risky and inefficient.
The analogue landscape allows the tenant to handle the cash or money, which could prove cumbersome for them. Furthermore, there are odds of risks such as fraud, human error, or theft. Also, traditional methods use more resources as compared to digital methods. Because landlords have to manually keep track of every payment and reconcile accounts, that may result in human error. All in all, analogue methods could prove to be a hindrance to efficiency.
So, what is the solution? The answer is upgrading the process of rent collection through software.
But wait, why should you do that? Let’s understand.
Enhance Record Keeping
Record keeping through traditional methods was prone to errors and disputes. Sometimes you can miss out on as little as putting a decimal point, and that’s where the chaos starts. Thus, it is advisable to use software for rent collection to steer clear of human errors. It makes it easy for the landlords to see the payment history or any pending balance. Besides, property owners can easily download important financial reports to make wise decisions as far as their investments are concerned.
Any business is built on the foundation of efficiency. And that includes the rental industry too. Rent collection software allows the landlords to save time as they would have spent while manually recording the transactions. All thanks to the technology, such software handles tasks with the click of a button that would take you far longer. It gets you rid of extra work. Now, collecting the payments and processing them has become a piece of cake with the software doing that for you.
Taxes are like a bad dream for every landlord. Especially for those who have a large portfolio. So, whatever tactics you apply to simplify the daily operations will definitely be going to help you at the year-end. Rent collection software helps landlords and property owners to automate several aspects of financial record-keeping and reporting. Recording financial transactions efficiently ensures that the financial statements are readily available when needed, especially for tax purposes. You can have insights into rent received, expenses, late fees, and other outstanding payments. What’s more? The software may also offer the ease to calculate and track deductible expenses to further simplify the process of tax preparation. It also assists in compliance to avoid you compliance issues. So, it is not wrong to say that rent collection software is like a central hub for your financial data, and you can navigate the tax season easily with its help.
Diverse Payment Options
Traditional methods are limited to cheques, cash, or money orders. But with digitization at its peak, the options are more diverse than ever before. Online options have added flexibility to the payment options. Moreover, there have been many studies conducted with the conclusion that more and more tenants nowadays find it easy to set up automatic payments through secure platforms, saving them from making late payments. Hence, online rent collection software has the power to accept several payment options like debit cards, ACH transfers, or credit cards.
To Make A Long Story Short
There was a time when rent collection was considered a hassle. But its upgraded version in the form of software has made that all easy. As a landlord, you not only have to collect rent timely but also collect it using the right software.
Having the right rent collection software has become essential for all landlords and property owners out there. And when it is offering you the much-needed benefits as mentioned above, why not try using one for yourself? So, upgrade your rent collection process from analogue to digital and reap the best returns.
Barsha Bhattacharya is a senior content writing executive. As a marketing enthusiast and professional for the past 4 years, writing is new to Barsha. And she is loving every bit of it. Her niches are marketing, lifestyle, wellness, travel and entertainment. Apart from writing, Barsha loves to travel, binge-watch, research conspiracy theories, Instagram and overthink.