The common excuses tenants give to their landlords when asked to mail their rent check payments are: they do not have a checkbook, or they do not know where to get stamps. Nowadays, many renters are looking for ways to pay rent online. They use the Internet to pay bills, shop, attend classes, and stalk their past loves, so why not use it as well to pay the rent?
Landlord or property managers find it hard to encourage some tenants to pay rent online because they either prefer the traditional way of doing things, or do not trust an online portal to transfer a huge amount. For this reason, utility providers and cell phone companies continue to accept mail-in payments.
When it comes to rent payment, though, sticking to one payment method could be more efficient for landlords and property managers. So, what is the best way to encourage tenants to make online rent payments?
Include it in the Policy
A number of landlords and property manager require their tenants to pay rent online and have become firm on their policy. Though this may only be a low percentage, you are taking only a slight risk of not being able to draw some renters with this condition. Implementing an online payment policy is more acceptable in very competitive markets, where there are limited options, making renters less demanding.
Provide Them with Incentives
Perhaps the easiest way to streamline the process of your rent collection is to give incentives to tenants whenever they pay rent online. If they get a reward instead of an ultimatum, this might encourage them to make the move to pay their rent online.
Property owners/managers can give a 5% discount to those who do online rent payments. Maybe, they could permit the tenants to pay online until the fifth day of the month rather than the first, since this is not a check payment waiting to be cleared. Or else, they can offer a raffle with a gift card for a cleaning service for those who sign up for online rent payments.
Make Things Easy
Majority of landlords/property managers collect the rent online using payment portals. However, to make things easier for them, you could include platforms they are more familiar with.
Educate your tenants
Not all renters understand the advantages of paying their rent online, especially when they are using a credit card. So, it would help to provide them with some information on how they could benefit from making an online rent payment with their credit card. For example, explain how much rewards they can earn by using their rewards credit card to pay rent.
You may have to use your own marketing strategy here, but you could catch their attention by sending them a short email saying that online rent payment could result to getting a free trip someplace by the time their lease ends.
Incorporate it In Your Overall Strategy
Convincing tenants to make rent payment online is just part of your overall strategy. Landlords and property managers are now using digital platforms for most of their activities. Rental apps are easy to access online. Even maintenance requests are currently obtained and updated by means of online portals.