The right online rent collection tool can reduce admin work and increase the likelihood of rent being collected on time.
When it comes to collecting rent having the right tools for the job will not only help ensure that rent is paid on time every time, but also improve landlord-tenant relationships by removing a point of friction. Tenants don’t want to be dealing with their landlords all the time, and equally, landlords don’t want to be dealing with their tenants all the time. However, rent needs to be collected and it needs to be collected every month.
In this article, we outline the key features that you should be looking for in a rent collection tool and how Landlord Studio, in particular, can help you with your rent collection process.
A key feature that rent collection tools should offer, and which you won’t find on generic online money transfer tools like Zelle or Venmo is the ability for tenants to set recurring payments.
Having an Auto-Pay feature means tenants can set their rent payments to go out at the same time each month. Then unless the payment fails due to insufficient funds or they turn off the recurring payment, then you are guaranteed to get the rent payment at the same time every month. This feature is a huge relief for many landlords and has been found to actually increase the likelihood of rent being collected on time.
A tenant portal allows tenants to view historical payments and manage upcoming ones. This gives both parties clarity and evidence of the current transactions between them. This clarity is important to developing a strong positive relationship between landlords and tenants.
When you transfer money through some online transfer options, for example, Paypal, the money is held in an account related to the tool rather than being delivered straight into your account. This comes with a couple of potential issues such as additional fees. The main risk though is not being able to access the money should your account with them be suspended.
With a rent collection tool like Landlord Studio, you don’t have to worry about this. The money is transferred directly into the account you choose.
Should you be in the unfortunate situation of pursuing an eviction due to non-payment of rent, allowing the tenant to transfer a partial amount of rent to you can delay or even completely derail the eviction proceedings. This is because a partial rent payment is seen as the landlord accepting a reduced rent amount.
With Landlord Studio there is no risk of tenants sending through partial payments as the landlord is in charge of the rent amount owed. They can’t send a custom amount through.
With features like Auto-Pay, you don’t necessarily need to send out an email every month to remind your tenants to pay, however, sending out receipts and invoices as proof of transaction can help keep the record straight. This is especially important should tenants stop paying rent for any reason.
Landlord studio allows you to automate your invoicing and receipts each month. Removing another thing you’d otherwise have to worry about.
Landlord Studio goes beyond a simple online rent collection tool. It is a landlord-specific tool designed to improve the accounting and bookkeeping for landlords and property managers.
Our online rent collection tool is designed to work with our other features and simplify not only the rent collection process but simultaneously reduce the total amount of admin work. For example, our online rent collection tool combines with our income and expense tracking system so that the software automatically recognizes your income and reconciles it against the relevant property and tenant. All you have to do is watch the rent checks come in.
There are plenty of rent collection solutions on the market, including generic money transfer apps such as Zelle, Paypal, and Venmo. However, tools designed specifically for landlords such as Cozy or Landlord Studio come with tailored features to help ensure timely rent payments. Choosing Landlord Studio over a tool like Cozy, however, lets you combine the various smorgasbord of tools you are currently using for income and expense tracking, digitizing receipts, tenant screening, rent collection, and more into one.
Ensure timely rent payments, remove time-consuming admin tasks, and improve the accuracy of your accounting with Landlord Studio. Plus the Landlord Studio downloadable app makes it easier than ever to stay on top of things wherever you are.