Pros and Cons of Online Rent Payments for Residents and Property Owners
Online rent payment is the future of rent collection and tracking payments. The systems let residents to pay the rent online without missing a payment. Property owners are able to collect the payments without much hassles and delays. Online rent payment systems have led to modern and innovative methods of rental payments and collection.
Payment processor such as YapStone allows landlords to register and collect rents. Their system is compliant with the Payment Card Industry Data Security Standard (PCI DSS). This results in a secure and reliable mode of payment processing. The systems are compatible with payments via tablets, laptops, mobile phones, social media, debit card, credit card, bank accounts, and so on. This gives flexibility to user and faster payments.
Landlords are able to collect rents from hundreds of units with the online payment systems. The payment processors can be integrated on your website with the programming interfaces. PayLease is such system which offers online rent payments to customers. Large scale payment processing, tracking, and reminders is possible with the system. Accounting accuracy is improved and manual data entry errors could be avoided for the property management.
Management becomes simpler with the online rent payment systems. Apartment rents, condo rents, vacation rents, and so on can be managed with the online rent payments. Cash flow is improved for the business due to the ease of payment. The systems have reminders, tracking systems, and reporting inbuilt which the management can access anytime. Screening the tenants, rental application, and sending documents gets easier with the online rent payments. Cozy is a another free service for online rent payments.
Some other online rental payment systems include ClearNow, eRentPayment, Payyourrent, and so on. Check for one time fees, monthly per unit fees, upgrade options, cancellation fees, and so on before signing up. Some charge extra for the featured services while some may charge for more units. Some may be fraudulent altogether which may cause heavy loss to you.
The online systems are preferable to the account clearing through checking accounts. When the money is deducted from a checking account, a paper check is still mailed to the biller. The online systems eliminate the paper checks by money transfer from customer account to property owner's account.
Online rent payment offers a reliable way of paying rent without missing a single deadline. They are able to pay through the credit, debit, and bank accounts in a timely manner. Users can complete the payments with ease and minimal disruptions. Payments that fluctuate monthly can be processed as well with the online rent payments.
Tracking payments is possible with the help of online systems. Issues associated with lost check in mail, late payments, penalties, follow ups, and so on are eliminated with the online rent payments. Renters can avoid sending paper checks, postage stamps, and mailing them.
Property managers and accounting departments prefer the online rent payments as they are hassle free. The reminders are sent monthly and the payment gets deposited in the bank accounts without any delays. If any additional charges are to be made for a tenant, that can be billed automatically.
Online rent payments have inbuilt documentation and reporting functionalities. Sending and receiving documents and proofs is possible without much paperwork. Profit and loss statements and tax documents can be easily retrieved in some systems. Annual updated documents such as resident information and so on can be sent quickly.
Online rent payments are extremely vulnerable to security issues such as hacking and identity thefts. If the system is not as per the Internet standards for payment processing, then the customer data may be compromised. Moreover, if the vendor is not established, they may further sell the customer data to others.
If the transaction is terminated because of the errors in the system, there is also possibility that the customer may be charged extra. Here are some disadvantages of online rent payments: