For you or not for you: Electronic rent collection
Justin HennigPro Member
Investor · Minneapolis, MN · Member since 2013 · 59 posts · 11 votesI'm a landlord pondering electronic rent payment... I love automation in business and this seems to be a no-brainer but I understand many landlords have not adopted it. There are lots of options, so it's a little confusing with all of them...
Here are a few quick questions:
1) If you personally don't use electronic rent collection, why not (or why not yet?)
2) If you use electronic rent collection, which do you use and why?
3) What features do you like?
4) What would you change or add to the service you use (or would use if it had this feature) if you could?
Bonus question: What else would you (or do you already) automate in your landlording and/or real estate business if you could?
Thanks for any responses...very much appreciated!
Justin
Ding Ding Ding!!!!
I want to avoid doing work that are superfluous non value added tasks like going to the bank to make deposits, going to a rental to collect rent, or checking in with the residents if the payment isn't in on time.
Exactly. It has nothing to do with avoiding work.
That's like saying that driving a car is LAZY, and one should only ride horses and buggies as they did 100 years ago.
Technology is here, and there are PLENTY of ways to stay connected to your tenants, including birthday cards, Gift Cards for when they pay early each month, Xmas cards, etc.
Don't cut off the nose, to spite the face. Welcome to productivity and results in the 21st century.
2) If you use electronic rent collection, which do you use and why?
I use www.erentpayment.com for most of my tenants. They are reliable, great customer service, and have multiple options to notify tenants and manage payments.
3) What features do you like?
Knowing who paid what when. Being able to send auto-notices if the rent is late. Being able to charge and collect late fees.
4) What would you change or add to the service you use (or would use if it had this feature) if you could?
I would like to have the process move along faster. It takes about 3 business days to clear the tenants' payment into my bank. Then I have to wait for the next business day to access those funds. The whole process can sometimes take a full week or more if there are weekends or holidays in the middle of it.
It's $3 per transaction. There are cheaper payment sites, and I may look into them, but for now, I absorb the cost. They are worth it.
Several tenants pay directly at the local branch of TD Bank into my business account. It's deposit-only, and in 6 years have never had a problem. I let them do that if their rent amount is unique, that way I know who paid. The benefit there is the money is almost immediately available. Out of 8 rentals, 2 (and soon 3) pay at the bank. That gives us enough immediate cash to pay the mortgages/maintenance fees that are due within the first 3 days of the month.
We have never taken personal checks and never will. Nothing is mailed, no exceptions. We tell the tenants up front, prior to lease signing, how the rent is to be paid. First month and security deposit with a money order or bank check only. All our rentals are advertised on craigslist, so if they are able to use a computer to find us, they can pay online or just go to the bank.
Hello all!
I use www.simplifyem.com (aka TREX global)-- I like this site because it's only $3 per transaction, and it's a complete accounting app, AND it was free for less than 4 or 5 units when I started. It allows me to track income/expenses, print out reports, etc. I am not a fan of spreadsheets or the time it takes to create them, so I like that they already have it done for me, and I can keep track of all of my rentals simply by logging in and looking at the reports. They also send me a monthly cash flow report showing best and worst performing properties. Also, it's private for tenant/landlord, the tenant receives a link to sign up. They also add late fees, etc if the payment doesn't go through.
All these good things being said, the system seems a little old school, they don't have an app, and there are better programs out there. Unfortunately those programs can be around $200/month (appfolio, etc) and are really made for property managers.
I love e-payments. I get them 3 days after the 1st of the month or 8 days in some cases (some states have grace periods). It's faster than any of my payments from property managers!! Another thing I offer is if they want to pay via wellsfargo sure pay.
Now, if only I could automate the maintenance calls, and interviewing/selection process for repair people!!
Why would tenants give out their banking info to a 3rd party that does not list a business address on their website sound kind of shady? I might have overlooked their business address.
Joe Gore
1) If you personally don't use electronic rent collection, why not (or why not yet?)
I do and no longer accept non-electronic payments. My tenants either use their banks own ACH ePay solution, or I direct them to use Venmo.
2) If you use electronic rent collection, which do you use and why?
Saves me considerable time, it's quite easy these days, and there is no 'lost in the mail' excuse possible.
3) What features do you like?
Ease of use, saving of time (theme of the day!) and integration with my PMS (further time savings and reduction in clerical errors). For this second reason, I'll eventually steer all of my tenants to use Venmo.
4) What would you change or add to the service you use (or would use if it had this feature) if you could?
For Venmo specifically, I'd like to have an recurring charge option without the need for an API. But I'm using the API on my website, so this really a non-issue (though it may be one for other people).
Bonus question: What else would you (or do you already) automate in your landlording and/or real estate business if you could?
I automate repairs & maintenance, to some extent, using PMS. Still have to show up, of course, in person; but logging the history of the process is valuable in the long-term management of a building or tenant relationship.