Tips on How to Collect Rent and Get Paid On Time

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Implement your policy on collecting rent

To make sure tenants pay regularly and on time, the best practice is to make your rent collection policies firm and consistent. However, there are some exceptions.

In your contract of lease, you should include all payment related issues such as the following:

  • Exact due amount per month
  • Where rent is paid
  • Accepted payment methods
  • Rent payment due date and grace periods
  • Consequences of bounced checks or non-payment

There are times when you may feel sorry for your tenant who is going through difficult times, or being too quick in charging a late payment. When you are convinced that a tenant is having a “one time” experience, you can be a little more considerate.

On the other hand, to prevent them from taking advantage of your kindness at some point, make your policy firm after that, and stop being too lenient. Make them understand that whenever paying bills, rent should be a top priority, and that they will be responsible for the costs caused by delinquency.

In case you lack time and cannot collect rent payment or late charges, you can always hire a reputable property manager to do the job.

If they cannot pay on time, know the reasons

If you come across tenants who were not able to pay rent for the month, ask them some questions to figure out the issues they may have.

  • When will you be able to pay rent?
  • Where will you give your payment?
  • How much will you be paying?
  • What method of payment will you use?
  • What source of income will you use in making your payment?

If they avoid answering your questions, give them an eviction notice on the following day. An eviction notice can only be served when tenants break your lease agreement. Verify your state rules to know the legal length of time needed for the notice before filing for eviction, and if your state requires several violations before proceeding with eviction.

You can serve notice (unofficially) in a simple way like sticking a piece of paper on their door that says “pay past-due rent to avoid eviction”. It will only be official when a formal letter is mailed and sent by means of Certified Mail as proof of receipt. More often than not, a notice taped to the door is sufficient to scare them into looking for the money elsewhere (like from dad and mom).

Give incentives to good paying tenants

The most important part of handling a rental property is keeping hold of good tenants. At times, landlords focus too much on avoiding unnecessary situations that they fail to notice the renters who make your work worth doing.

If a tenant always makes a rent payment on time, follows your rules and maintains your property, let them know that you appreciate what they do by giving them a gift card or a basket of fruits.

The best time to show your appreciation to your tenants is after they have paid one year of successive, well-timed rent. Gifting indecisive tenants with a timely gift basket can also motivate them to renew their lease.

Of course, if your tenants would have the possibility of paying the rent online, it much be much easier for both parties involved. It’s easy to implement this step – learn more about our rent payment service.

Why online bill payments are becoming more and more popular

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Perhaps one of the best advantages of online bill payments is eliminating the use of paper. Banks and service providers usually ask their customers whether they would rather receive billing statements and reminders via email. Nowadays, almost all bills that are mailed can also easily (and less costly) be sent electronically. With less mail and envelopes to open and refill, this means less bother for you, as well as less footprint in the landfills.  When these firms create fewer bills, more fuel and energy can be saved on printing, processing and transporting them. Therefore, it is safe to conclude that online bill payment is a versatile scheme when it comes to environmental benefits.

Paying your bills online enables you to manage your finances (as well as your counter) at the same time. When you are not an organized or technical person, paying your bills online may seem to be a bit intimidating. You feel that it is less stressful to get a paper billing statement in the mail, prepare a check then send it back. However, in reality, online bill payment is simpler. It may take some time to set up, but the moment it is through, you can be sure that there will be no late payment charges or lost things in the mail (or the huge pile of junk on your counter) ever.

There are a number of services that can let you consolidate bill payment. Thus, when you are tired of hopping from one site to another or getting your checkbook every month at different times when payment is due, you can opt for a third-party online billing service.

They collect (scan them in some cases) and email your bills via email, as well as post them to your account, then they automatically withdraw from the account you choose on the date you designate. You can view bill calendars and get alerts every due date. Other services allow you to pay anyone from your account (at times, with a credit card or check). There is no need to remember user names and passwords when paying every bill. There is nothing easier than that.

Certainly, most of these services come with a price (just a few dollars monthly and a minimal fee for every transaction), but to a lot of people, this is so small a price to pay for all the convenience you get.

It is difficult to stay organized and stay focused on your finances when paying your bills the traditional way. When you paid the monthly fee for your cable service, the bill often gets shredded, lost in a pile of paper or filed. If there are changes in the amount or unnecessary charges to your account, this may take months before you realize it. On the other hand, if you pay online, you will be able to view your records and know right away if something is wrong. When you pay through a third party bill payment service, you can instantly view everything in one location.  This is similar to hiring the services of a professional organizer without any cost.

Now that you’ve seen the advantages, it’s time to invest in an online rent payment service for your tenants – let them be able to pay rent with credit card.

 

Benefits Offered by Online Payment and Recurring Customer Billing

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Like other businesses, your revenue may depend on payments from customers that are scheduled on a monthly, quarterly or semi-annually basis. Nowadays, more businesses are offering recurring billing options for their goods and services, which makes it more convenient for both the customers and the business. Most businesses, together with other establishments  – such as banks and financial firms – normally require their customers to mail a check, call to give their credit card information or to pay their bills at any of their locations. Going for any of these options can use up most of your customers’ time, as well as bring about problems with regards to late or non-payments.

Are you thinking of including online payments in your line of services? Consider the following benefits that an online payment solution could provide for your business and customers:

Convenience

A lot of customers are happy paying online since they can do it from any location, any time of the day. This sees to it that there will be no late payments due to a slow delivery of mail or processing. Also, customers do not have to waste their time on the phone or falling in line. Customers can pay their bills online and instantly receive an email that confirms the receipt of payment, approval and a reference number for their record.

Security

An online payments solution uses many security measures to protect you and your customers. Most online payment platforms use different types of encryption to protect confidential information from being accessed by an unauthorized party. As an example, since Visa cards are the credit cards that are most widely used worldwide and accepted in more than 150 countries, they have their own security measures – such as the 3-digit security codes found at the back of every card. Customers are usually asked to input this number to avoid fraudulent transactions from pushing through. Aside from the protective measures provided by Visa, Mastercard and Amex, online payment solutions let your business post payments without having any access to confidential credit card information. The moment a customer inputs his/her credit card details online, this is stored safely in their account information.

Timelines

It can be very frustrating for customers to find out that their payments were not received on time. Most businesses charge late fees, so it is natural for customers to get mad when they have nothing to do with the delayed payment. Fortunately, you can have recurring billing options, so your customers can make their payments immediately via an automated system. This not only eliminates a task from your customers, but also allows the payments to be made on time.

Customer Satisfaction

When you offer your customers the option to make their bill payments online in a secure and well-timed manner, you make it more convenient for them. When you present them with options to meet their needs, they tend to have a more favorable view of a business. To keep the customers satisfied, provide them with convenient yet secure solutions to fit the modern-day consumer’s lifestyle.