Rent collection is one of the most intimidating and difficult duties of being a private landlord. Reminding your tenants about payments and knocking on doors to collect them when the due date comes can be stressful.
For this reason, you can’t deny the advantages of using online rent collection software to streamline your collection process, manage your properties, and grow your business through the software’s unique capabilities.
Online rent collection run through an easy-to-use platform can ensure e tenants pay rent on time, save you time and leave you to focus on more high-value tasks.
This makes investing in landlord software definitely worthwhile. Baselane, for one, offers its platform for free. In this article, we’ll discuss why it’s important for you as a private landlord to innovate and take advantage of rent collection software.
What are the Problems of Collecting Rent as a Private Landlord?
Many private landlords hire rental managers to manage a large portfolio of properties, but being a DIY private landlord means having to do it all yourself. That means tenant screening, background checks, marketing, collecting rent, managing security deposits, repairs, maintenance—all in one endless list of To-Dos.
One of the toughest aspects of being an independent landlord is rent collection since it involves hands-on work. Personal rent collection means constantly knocking on residential homes or trying to furiously contact tenants to remind them about their dues so they can pay rent on time.
In some cases, renters may try to actively avoid the private landlord during rent collection visits. Some renters may even try to negotiate to the private landlord for a grace period or an extension of payment. This can obviously affect the landlord’s financial situation in more ways than one. Ultimately, these situations lead to frequent evictions that are also costly and stressful.
What can landlord software do to make your life easier? Simple—It eliminates processes that are not only time-consuming but can also be a source of stress for a private landlord.
What are the Advantages of Using Rent Collection Software?
Reduce stress and automate!
- It is no surprise that repetitive tasks are now made easy through technology. By automating rent collection, you remove yourself from the equation by letting a platform do it for you. Rent collection software effectively removes the need for in-person visits.
With such a platform, you do not need to chase checks and do stressful accounting. There are no more spreadsheets and manual transactions, as well. Life can become easier when you allow technology to take over.
Keeping overhead costs low
- Automating other aspects of your business can reduce overhead costs and free up your time to do what’s important. An accountant can cost $4,000 a year and a property manager can charge as much as 10% or more of the monthly rent with additional fees on top.
If a unit costs $1,000 a month, you’ll have to pay at least $100 to a property manager every month. That’s why many private landlords depend on rent collection software to make business seamless, cost-effective and convenient for them and for their tenants.
Real-time analytics
- A rent collection software allows you to track your expenses, cash flow and data as soon as they come into the system. This builds efficiency and saves you a lot of time and money in the long run.
Hiring a property manager can be costly and inefficient as human error is more rampant in the process. With the use of the best analytics software, we lessen the cost and minimize errors. There’s no more need to hire a property manager and pay monthly wages when you can manage your rentals through a single platform.
Better customer service and experience
- Rent collection software gives tenants flexible payment options and makes it easier for both renters and private landlords to send or receive payments. Tenants can make payments through a credit card, make transfers and deposit checks from any device.These payments are also recorded in the program, making it simpler for both the landlord and the tenant to track their payments, as well as streamline the tax reporting process. All in all, such software makes the process easier for both to adjust to the ever-evolving digital world.
Security and organization made easy
- Finally, landlord software offers better security than other accounting platforms. Since these programs have secure databases that can prevent any attack or unauthorized access. On a more practical note, rent collection software is safer and more secure since, through this software, you are not actually putting your money or your tenants money at risk.
Final Thoughts
Rent collection used to be so difficult, but it’s not anymore thanks to the availability of the latest tools. As a private landlord, your job is not exactly to collect rent, but to live your life as rent is collected for you with the help of the right software.
Rent collection software is something that is essential for every private landlord. It is a tool that private landlords must have. Not having it today is like sticking to a hammer when drills are available. Sure, they can do the same job, but upgraded tools make it easier for you.
FAQs
Automating rent collection is simply a matter of using the right rent collection software and then informing your renter about this kind of arrangement.
Most rent collection software has an automation process or option that you can avail. Be sure to read and learn about the different kinds of rent collection software, including their features. This will help you know if their automation process is ideal for the needs of your tenants and yours as well.
The most important thing, at the end of the day, is financial security. This involves setting up secure online rent payment procedures as well as protecting your business and tenants from online attacks.
The majority of online rent payment systems will take rent from a person's bank account before depositing it into yours. This guarantees they have the finances to pay and prevents you from receiving half-payments in cash or checks that may bounce. Both the landlord and the renters benefit from online rent collecting because it is more easy and secure. From a computer or mobile device, both parties can check balances and make transactions.
Online rent payments will be the norm in the near future. Rent collection software may not be able to do everything but you can enjoy greater convenience. You don't need to cash checks anymore as the platform allows for automatic deposits and electronic record keeping. As a result, you can avoid lost or late payments, and improve the quality of services for your residents.
