Save Time By Collecting Rent Automatically

For those landlords managing rental properties on their own, collecting rent manually can be both time-consuming and inefficient. Automated rent collection apps provide landlords with a low-cost option that can handle payment processing while reducing administrative work. This provides landlords with the ability to focus on maintaining their properties and communicating with tenants for reasons other than collecting rent.

Today, we’ll go over the different applications available to landlords as well as which one is better suited for your needs.

Dedicated Rent Collection Apps

Standalone rent collection apps such as Payrent and ClearNow focus primarily on automated rent payments. They allow for tenants to pay via automated clearing house network (ACH) transfers as well as credit and debit cards, and automatically deposit funds directly into the landlord’s desired account. These platforms will oftentimes have fees associated with them, though less when compared to full property management software, making these options cost-effective for landlords with small portfolios.

Property Management Platforms

Mobile applications such as Avail and AppFolio include rent collection as part of a broader package. These apps are tailored towards landlords with growing portfolios or those who live far from the rental property itself. Additionally, these types of systems provide the ability to manage tenant screenings, lease renewals, and financial reporting in a centralized app to save time. It can also help reduce the need for multiple subscriptions and help landlords present more professional and organized operations to their tenants. First impressions are important, and prospective tenants will appreciate this organization and expect a healthy relationship with their landlords compared to disorganized and unprepared landlords.

Recurring Payment Scheduling

Both dedicated rent collection as well as property management apps provide an automatic recurring payments feature. The majority of automated systems allow tenants to set recurring payments, which helps to reduce late rent payments and facilitates a consistent cash flow. Additionally, it eliminates the need for monthly reminders and reduces the risk of tenants forgetting outright. Recurring payment scheduling works by having your tenant select a fixed payment date agreed upon in the lease. Once established, the payment is automatically processed each month without the need for additional input from either party. Eliminating the variable of manual payment timing creates a predictable deposit schedule for landlords. If necessary, these applications can be set up for automatic notifications to confirm successful payment alerts for both landlords and tenants.

Varied Payment Methods

It's good practice to provide your tenant with as many choices as possible to pay their rent. After all, why make it difficult to get paid? Some tenants may have a preference for payment methods. Applications such as Zelle or PayPal allow for direct payments without the need for a conventional property management application. This can simplify transactions for some, as you can also set up recurring payments on these applications as well. Although this system may not have lease tracking like the property management apps may have, the convenience can be a deciding factor.

Automated rent collection apps give landlords practical tools to simplify rent payments and improve the consistency of cash flow. These apps encourage landlords to evaluate their operational needs; sometimes these are enough, in other cases, consider a property management company. A property manager can provide landlords with additional resources in the case of emergencies. This is why property managers should be seen as an investment more than simply a cost. If you’re looking to set up your tenants' automatic rent payments or you need help managing their Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online.