How to Collect Rent Payments Online in 4 Steps

Cody Cromwell
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Collect Rent Online Using a Rent Collection Tool

When you collect rent online, there are several benefits available to you that an offline collection does not. First, rent collection online is more efficient. It saves you from having to travel to your tenants’ houses or pay for travel expenses. This means you can save on your gas, your time and, you can also save on other travel expenses. You also get notifications and reminders so that you get paid all the money at once instead of over a period of time. This makes your life easier as well while increasing the overall productivity of your business.

Second, if you only have certain kinds of tenants that pay on time, you can easily filter out tenants that have low credit scores. This also speeds up the process of collecting rent.

Third, you can also use automatic credit score monitoring software. The software will identify tenants that are a risk to default on their rent payment. These tenants can be sent directly to collection instead of being put on a waiting list.

Fourth, you can also distinguish between fast payment tenants and slow payment tenants. Fast payment tenants can be quickly sent to collection. Slow payment tenants can be put on a waiting list instead of being sent to the collections.

Applications like this give you the much-needed flexibility and flexibility that software gives you while solving many of the problems of traditional rental collection.

Venmo

The Popular Payment App.

If you pay rent or want to get paid online, Venmo is the way to go. There are also other ways to pay rent online, like Zelle, Hump, Square Cash, Cash App, Amazon Pay, SnapScan, PayPal and BillMeLater.

Any company that handles online money payments is also great for collecting rent online. Wayfair, Walmart, Newegg, Hayneedle, and HomeDepot all allow you to pay rent online.

It’s pretty easy to set up. Most of the companies above offer you a long-term loan and then pay the rent for you. You then receive money to your bank account every 7 days.

Avail

Payrise eServices, availing a number of services from a single platform.

In order to collect payments online for rent, you need to configure and structure it in three different ways. As mentioned earlier, the first step will be included on the website’s page in the menu along with options like managing tenants. As the third step, you should add it in your online system. Apart from the rent due on the due date, you also need to confirm that the amount you have to pay is correct. You can add email labels in your email campaign, linking the payment with it. This let you undermentioned payments – rent, utility, or other payments will get automatically added in the inbox for future reference.

Apart from this, again, by entering the menu, you can enter the confirmed rent amount and the due date, along with the amount to be paid in the utility list. This will help you to keep track of the amount that is to be paid for each utility and rent due on the due date. Thus, you can all the due rent amount on the due date by copying the email id to use in the search bank with the utility and the rental. In case of any extra payments you have to send at the due date, you can simply enter the amount of extra payment you have to pay by seeding it and send the payment online accordingly.

Buildium

And its RentalSpace platform help you create, manage and collect rent payments in less than 5 minutes.

If you dream of collecting rent payments online from your tenants, you can get started in less than 5 minutes. It takes just a couple clicks to create a rental page once for every rental property. Once the rental page is created, you can easily manage your tenants’ payments with just a couple of clicks each. Buildium’s RentalSpace platform makes collecting rent online smooth and simple. Here are the steps how to build a rental page in about 4 minutes.

Set Policies for Online Rent Payments Upfront

With a little forethought and planning, you’ll be able to collect rent payments from tenants online in minutes instead of having to send out physical copies of the check on a regular basis. In fact, you can now automate the process so that it happens whenever the rent due date arrives.

Start off by laying down two policies with the company you choose to deal with online rent payments:

Your tenant can check their bank statement or a credit report to determine if and when the rent is deducted from their account.

Your tenant should have the option to set up a recurring payment for the rent and choose the frequency.

After you’ve established these policies up front, your tenants don’t have any excuse for not paying their rent on the due date. And you won’t have to worry about late fees.

Tenants’ Ability to Pay Online

The ability of tenants to pay their rent online is becoming more standard.

In the past, generating required paystubs took a great deal of effort on the part of landlords. Collecting rent payments was tedious and the lack of online payment capabilities has created friction for landlords and tenants. With today’s technology, this friction can be reduced significantly.

Tenants can now receive rent payments electronically via direct deposit. This method is typically faster and poses fewer barriers for both landlords and tenants.

For instance, in the state of New York, an electronic rent payment is eligible for a five percent additional credit on its rent payment.

Enforce Your Lease & Collect Rent Online

For this tutorial we’ll use an example of an online form, but we’ll also show you how to setup a web app or directory to manage your building’s tenants. The application will empower users to request as well as receive online rental payments 24/7.

Step 1. Acquiring the right tenant info

A critical part of collecting payment (online or offline) from tenants are getting their personal information (email, phone) & your contact info as well (mailing address, phone number). Your app will allow tenants to fill up each field in a intuitive & easy to use webform. This way you can be sure tenants filled up with valid information and only from your approved tenants.

Encourage Automatic Withdrawals

In order to build wealth, employ the power of compounding interest, accumulate savings that can take several years to mature, and take advantage of tax-deferral without incurring the penalties for early withdrawal, you need to be able to collect rent online.

One of the most effective ways to do this is to automate your rent payments.

If you have the ability to set up a practice account and draw up a short-term plan, you can start to automate the collection of rent payments, which in turn will allow you to collect money and build wealth.

Encouraging Automatic Withdrawals and Collecting Rent Online

If you are looking for a way to get people to pay you on a regular basis for a set amount of time without having to spend much time collecting those payments, the concept of a practice account is a great place to start. The idea is to set up a limited time contract with an invested sum payable upon the specified end date.

Using the concept of a practice account, you can offer your services and start making money without having to schedule a long series of appointments or commit to a large sum of regular funding.

Since the practice profits are never used, the sum of money paid back is often significantly greater than the initial investment.

Set Up Online Rent Payment Reminders

Create reminders on your website and be notified when rent is due.

In order to eliminate the hassle and headache when it comes to collecting rent payments, you can use your website to set up reminders for your tenants. Your tenants will be able to view their rent due dates directly on your website so that they don’t have to rely on you for reminders.

You can create reminder forms on your website as well, so if you’re running an e-commerce business, you can have reminders available to your customers as well.

Charge Late Fees

Charge your tenants late fees for late rent. For example, let’s say you’ve sent out an eviction notice but your tenant hasn’t paid their rent. Take their payment and threaten them with fines until they pay up. You should also threaten late fees whenever your tenant is too tardy paying the rent.

Report to Credit Bureaus

The first step in collecting rent online is to go to Credit Karma and fill out this form.

Report to Credit Bureaus

In the report, you have the option to report to the major credit bureaus about the rent payments. You just need to enter the last 4 digits of your social security number.

Collection of Rental Payments

Once the report is filed, you can use these two methods to collect the payments. Create a Check Request. Choose the itemized deductible (the rental payment) as the item you want to request payment for.

Once you choose the item, you need to create the payment request.

You can also enter the amount of payment you want your tenant to make in the item you created and the amount of the payment for each rental payment you’ve requested. You can calculate the payment for each rental payment based on the amount you’ve charged to each rental payment. Then, just add the payments together then subtract out the amount for the deductible to get the amount for the rent payment. Provide this final amount to your tenant.

Give Incentives for Paying Rent Online

When it comes to collecting rent payments from tenants online in Bali, with the right incentives you can achieve a higher response rate and smooth the process.

Why collect rent payments online?

Aging paper records and a shortage of resources hamper rent payment collection and lead to further delays in achieving a clean title. The faster the collection process, the better your tenants’ chances of obtaining a clean title.

In addition to the value of a clean title, consider whether it’s worth the investment to minimize hassle and paperwork to collect payments on time. You can save on printing, postage and transport cost if you collect the payments electronically.

The service you receive from the tenant is also a factor to consider. You can’t meet with the tenants in person, so you need to be certain they can pay electronically and in a timely manner.

Ensuring the payment can be collected electronically is possible through a good service provider.

Bali is a rapidly growing tourist destination, especially with the rise of others tourists from Asia and the rest of the world, making the market very competitive. You need to make sure you are up to date with the latest trends and stay competitive.

Why your tenant will find it worth it to pay electronically?

Reasons to Collect Rent Online

Rent collection has often been a blessing and a curse. It might sound like a hassle to some, but it has its benefits. Here’s why it’s a good idea to collect rent online:

It saves time and labor

If you’re the landlord and need to collect rent from tenants, it can be a nightmare for you to visit each tenant’s apartment to get it. This is a time consuming and labor intensive task, and it’s definitely difficult for you to do it alone.

You can save time and labor by collecting rent online. Not only that, it can also save you money and help reduce the number of cases to be resolved. In case your tenants neglect to pay rent, you can track and monitor them online. If you have multiple tenants, this can prove very effective in collecting lost rent.

If you want to save time and labor, collecting rent online is definitely the way to go.

It’s more convenient and saves you time, money and effort

Fast & Secure Payment

Collection When you're collecting quick cash like rent, you know exactly how long it'll take to get the money. Therefore, you might be looking for a quick and easy way to get your funds without having to spend endless hours at the bank.

You could simply head to the bank and use their money collection service, but you know the longer your wait, the higher the interest you'll pay, and that's not good for your bank account. So you definitely want a faster, more convenient way to collect your cash.

You basically want to cut out all the hassle. So you’ll want to pay with a payment method that gives you fast, secure funds and a sweet 2% return, all while cutting down on fees.

For those who like to make extra money online, we’re going to walk you through a foolproof way you can pay off your rent without having to worry about your bank account balance.

Quick Steps for Paying Rent Online
The following are the quick steps you’ll need to take in order to pay your tenant via online payment. We’ll take into account any special situations you may encounter so that you can get started as quickly as possible.

Step 1: Secure Bank Account Access

Reduced Landlord Stress & Workload

Business is only as good as the customers’ experience. And as one of the most important customers, your tenants have a lot of expectations from you. They rely on you to deliver on rent payments on time. If they’re a little behind and waiting for their rent to be receiving in their bank accounts, it’s going to be frustrating. You too will have to panic if you don’t receive rent receipts and rent payments in time.

Having to chase tenants for rent payments or reminding them about renters’ insurance is clearly going to create a lot of stress for both the tenant and the landlord. As a result, the lease agreement will be lost in the shuffle. Rent poorly collected or rent weekly statements not arrived on time, property managers will have to send a lot of courtesy/ late reminder notices.

With the rent collection app, your tenants can keep track of their rent payments and reminders. You can even create a custom notice if you need to send out special guidance to your tenants on how they can pay their rent.

The power of the Rent app is in its ability to collect rent payments seamlessly. When a tenant makes a payment, you’ll instantly receive the information and be able to acknowledge the payment.

Increased Payment Compliance

The receipt feature is a totally hassle free way to send out rental payments. You simply need an easy to use mobile based application through which you can send out the rent payments. Using this application, you can send rent payments to tenants having a landline number or mobile number within the same building.

The mobile application helps in making the rent payments easy and efficient. Through the application, you can send out the rent payment in 4 easy steps.

You can manage your payments in the application itself. The app enables you to view the history of the payments that have been sent, the required amount being charged by each property, real time viewing of payments and rent payments and avoid duplicate payments.

About the Application

The application is quite simple to use. You can download it from your app store of choice. You may follow the steps mentioned below to start using it.

You start with downloading the application.

You then have to create an account in the application.

Now, you can sign in to the application using your email address.

You can check the balance of rent payments in the app. You’ll only have to enter the rent payment reference number.

You can either pay the rent payment through a card or get a voucher code for the same and pay remotely. Invoices can be downloaded using the ‘Download Receipt’ feature in the app.

Pros & Cons of Online Rent Collection

Rent Collection Start-ups like Lootbox.NG offer same day cash collection on the same day of collection without any hassle.

Is COD (Cash on Delivery) Safe?

When doing COD, the most important thing is to follow the collection procedure as it will at times get the customers. Vendors / Sellers must conduct basic customer check and ensure that all the customers who are provided with the delivery time should be covered, and the number of collection days should be reduced.

Is COD a Scam?

We usually face a very bad impression from the COD (Cash on Delivery) payment options. But it is better to make use of COD as the payment method in daily life to make payment to the sellers online.

What Are the Benefits of Cash Collection Through COD?

Cash collection through COD is very convenient for the customers. This payment method has the following benefits:

♦ Cash Collection is Available for Collection in Same Day

Cash collection through COD is available for the customers at the same day of collection. It is easy to pay a family member to collect money from the customer. It is safe payment when you cannot pay money immediately.

Frequently Asked Questions (FAQs) About Online Rent Payments

{1}. How do I setup my checking account to receive online rent payments?
{2}. When will I receive the funds from my tenants?
{3}. Can I pay my tenants via credit card?
{4}. Can I receive payment online from my tenants?
{5}. What can I do in case my tenant has not submitted any rent payment online?
{6}. What if my tenants’ bank account is closed?
{7}. What is the referral commission rate?
{8}. How much should I pay for the service?
{9}. Do you charge fees for deposits in my account?
{10}. How will I know if my tenant has paid their rent online?
{11}. How do I set up my account to receive my tenants’ online rent payment?
{12}. If I receive an online transfer from my tenants and I do not have sufficient funds in my account, what do I do?
{13}. How do I terminate the online transfer for my tenant?
{14}. Can I transfer online rent payment to my tenants who are located outside of the city of NY?
{15}. Why should I use Online Rent Payments to collect rent payments from my tenants?
{16}. Are tenants required to provide me with their bank account details?
{17}. Can I pay my tenants via credit card?

How do I make sure my tenant pays rent?

In it for the long haul? Satisfied your tenants pay rent on time? Good, keep up the good work! Now you can expand your business so you can serve even more loyal customers.

Leaving building and managing this stuff until the end of the month is a popular strategy among landlords, and it’s generally a bad plan. You’re telling your tenants at the risk of losing your ability to collect rent by waiting until the 10th of the month.

The biggest inconvenience to a tenant’s finances is the time and hassle of cross-checking their finances against your finances. The less tenants have to deal with related to collecting rent, the easier it is for them to sign rent checks on time and stick to a payment plan.

If you don’t set up mechanisms to collect rent online today, your tenants will likely pay late next month, and you will also have to deal with the hassle of chasing them.

Here’s how you charge tenants for rent online so they pay on the 1st of the month and how you can have your rent collected for you.

Can rent be paid with cash?

If you want to collect rent online, you may want to consider the following:

  • Regulation governing when rent is due
  • The tenancy agreement/contract

Your credit history: most landlords charge a deposit

Can tenants pay rent with a credit card?

If you’re running a property management business in the UK, the answer is a definitive yes – most tenants today are fully equipped with a credit card and use them to pay rent.

Whereas you might have seen this trend occurring in North America, it’s not something that’s so common in the UK. Whereas in the States you’re most likely to find landlords asking their tenants to pay rent with a credit card, landlords in the UK generally prefer landlords to ask tenants to pay with a cheque. Credit cards are likely to be the method of payment if you’re asking tenants to send you money for council tax, water charges, or repairs – otherwise, you’ll have a rough time convincing your tenants to visit your office with cheques.

That said, you may still want to accept credit card payments from tenants – you do so using a method called quick collection online. If you go down this route, it’s important to know who you’re taking payments from. Collecting rent on behalf of a tenant will become a landlord/tenant agreement.

That’s why we’ll start with the 4 steps involved in collecting rent online.

Bottom Line

Step 1 : Decide what you’ll accept as a rent payment.

Step 2 : Develop your billing script.

Step 3 : Test your billing script with actual customers.

Step 4 : Integrate your billing script with your online checkout.