Property management is proving to be a profitable investment with over 42 million households now renting. However, one of the major hurdles that come with managing a property is getting paid on time. By accepting rent payments over the phone, your property will differentiate itself from the competition, improve cash flow and enhance resident reviews.
The Problems with Collecting Rent
Do you currently utilize the methods below? The future franchise that will have the most success will model Keller Williams and focus 30-40% of their time on technology. Perhaps its time to modernize the way you collect rent payments.
1. Paper Checks
The Problem: Landlords have been accepting paying rent with paper checks for decades, and believe that “if it ain’t broke, don’t fix it.” Unfortunately, it is. According to The Federal Reserve Payments Study 2016, the amount of checks that people have written has dropped by 40% since 2000 and it’s highly unlikely that number will ever go up. Checks floating on a desk put a dent in your cash flow and increases fraud risk.
The Solution: The study also shows that non-cash payments, including mobile payments, has had a 650% increase since 2000. Compass Pay is a quick and easy over the phone solution for tenants to pay rent.
2. Limited Office Hours
The Problem: Tenants can only pay rent when the leasing office is open. If your leasing office is only open from 9-5 this can be problematic for tenants that also keep this schedule.
The solution: Compass Pay allows rent payments to be accepted 24/7; from anywhere and without a live agent.
3. Drop Boxes
The Problem: Offering an after-hours drop box is a terrible solution to the problem. Checks have a lot of personal information on them, and identity thieves will seek them out. If checks are stolen, it hurts both your tenant and your business.
The Solution: Compass Pay meets PCI DSS Standards and is built with security in mind. Tenants don’t have to worry about compromising their identity, banking, or credit card information.
4. Grace Periods
The Problem: Even responsible renters will pay on the first of the month, provided your office is open. Others will be more likely to pay within an established 3-5 day grace period.
The Solution: Instead of providing a grace period, buckle down on your tenants due dates and look into an over the phone payment system where tenants can verify rent payments within minutes.
5. Turn Around Time
The Problem: Your staff will likely need to dedicate all resources to collecting payments. Checks can take 2-3 days to process. That’s a time when your business doesn’t have the money it needs.
The Solution: With Compass Pay, there is no need to run to the bank. You can check your account info & balance in real time.
Investing In Compass Pay
Compass Pay is a great investment for property managers. Tenants love not having to search for a checkbook or worry when their rent payments will clear. Keep in mind, if you want to notify tenants via text message, e-mail or a call when their payment is due, an outbound notification system will always come in handy!