With so many ways to collect rent, it may seem overwhelming to choose the right method or switch from one method to another.
If you’re looking for the best method that’s designed specifically for landlords, then you should be using rent collection software.
Rent collection software was created to make your job easier and provide all the services you might need when it comes to rent collection. But with so many different rent collection software options available these days, how do you know what to look for?
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Here are five things your rent collection software should offer:
- Enforceable late fees
Late fees are unfortunately, a necessary part of property management. Nobody likes to be the bad guy. The good news is, with rent collection software, you don’t have to be. Good rent collection software will do the hard part for you. All you have to do is set an automated late fee at a fixed amount and with a customized grace period, as outlined in your lease agreement.
Good rent collection software should also offer customized reminders to go out to your tenants when rent payments are past due. This will help maintain a positive tenant-landlord relationship.
- Payment type options
Good rent collection software will not be restricted to a singular form of payment. By providing your tenants with the option to make payments via ACH (automated clearing house) or credit and debit cards, you are ensuring that all tenants will be able to pay using the payment type that works best for them. By doing so, you are more likely to receive payments on time and without issues or complaints.
- Low fees
Each rent collection platform structures its fees a little bit differently. Typically, there are three ways in which fees are charged:
- Fees based on individual payments (often dependent on the form of payment)
- Monthly software usage fees
- A mix between both individual payment fees and monthly software usage fees
Obviously, the name of the game should be keeping fees as low as possible while accomplishing everything you need to with your online rent collection. The amount you’re paying in fees will depend on the size and operation of your business. If you have only a few units, it would likely make more sense to pay fees on individual payments rather than to pay high monthly fees. The opposite would be true if you have many units. The rental collection software you choose should offer you prices that best fit your business type.
- In-depth bookkeeping
This may not be a feature of rent collection software you’d think to consider, but platforms with seamless bookkeeping can be a huge help. The best platforms automatically document all your payments, including rent payments and any fees that may apply, such as late fees or pet fees.
It’s also recommended that records be easily exportable. This enables you to upload them to whichever financial program you use. You can also use these bookkeeping features to download monthly data for backup purposes and share results with partners, owners, and your accountant.
- Customer service
While you’ll most likely want rent collection software that is easy to use, you may still find yourself running into a technological issue every now and then. The nice thing about rent collection software, as opposed to other payment methods, is that it is made specifically for landlords.
You’ll want to make sure that your rent collection platform has easily accessible customer service. You never know when you’ll run into an unexpected issue, and when you do, you can’t afford to wait around for delayed assistance. A platform with a knowledgeable customer service team with a wide range of hours of operation will be valuable to your time.
Property management software will make rent collection easier and more convenient for both you and your tenants. When picking your rent collection software, you want to make sure it offers everything that you need for the best and most efficient process possible. With so many platforms out there, it’s best to do your research ahead of time. That way when it’s time to receive rent, all your bases are covered.