Property Manager · Grand Rapids, MI · Member since 2018 · 12 posts · 8 votes
Wondering if any landlord/property manager out there has had luck getting tenants to pay solely online versus dropping rent payments off in office/mailing payments.
Our company is trying to minimize the amount of rental payments brought into the office.
A few methods that we have started using and implementing are as the following:
1. Helping tenants set up their online payments through the tenant web portal at move-in
2. At renewal time, I bring up the online payment and try to get them to set up then.
3. Sending out a letter outlining the benefits of using the portal with step-by-step directions to use the online payment through their portal
4. Charging a $5 convenience fee for any money order or check dropped off in office
we require all new tenants to pay online. No other options. For previous tenants we have an additional handling fee for mailing in checks or dropping at the office. $5 is not enough. Make it worthwhile to pay online. We also have a cash pay option via our software (rent manager). They can pay at over 50 locations within 15 miles of my office. They pay 4$ to make the payment. Much cheaper for them than dropping off at the office and more convenient for them. We are up to about 85% compliance on close to 500 units
I was where you are 5 years ago trying to make it as convenient as possible for our residents to pay online, and then they would thank us. Not the case, the reality is the we are creatures of habit, to change this habit you have to inflict a bit of pain and like Tracy mentioned up the fee. We provided them with a 30 day notice of policy change and implemented a $45 processing fee for any one paying outside their electronic option provided. ,Magically after one month we where able to convert those final stragglers and achieve 100% online payments on a 300 single family portfolio.
@Jaime Sepulveda and @Tracy Streich Thank you both for your responses. We have entertained the idea of increasing the fee and it sounds like it might be the route to try next.
I personally abide by the philosophy that you should incentivize people to do what you want them to, rather than punishing them for doing something you don't want them to do. In this case, how can you make the prospect of paying online more attractive, rather than making the alternative less attractive? From a tenant perspective, the former feels nice and the latter is a quick way to make me dislike you lol.
Try looking for a rent payment software that your tenants actually want to use. There seem to be quite a few out there. I use Roof, which actually has a whole suite of tools that tenants can use with their roommates too. My tenants LOVE it, and have told me so many times since I adopted it.