These days we are looking for creative ways to conduct all kinds of business. With the pandemic, many of us are trying to limit contact to slow the spread, this means things that were once a normal process have changed. Collecting rent online is one-way landlords and property managers are adjusting to these challenging times. We found some FREE online rent collection services to check out if this is something you are considering.
Advances in online solutions have greatly benefited landlords and property managers looking to enhance their rental management business to provide better services to their tenants, clients, and vendors.
One of the best practices a landlord or property manager can adopt for their rental business involves collecting rent online.
There are multiple benefits to providing your renters with the ability to make a rent payment online. By collecting rent online, you provide a convenient solution to renters wanting to avoid writing a check, increase the likelihood of on-time rent payments, limit the number of late fees charged to tenants, and simplify your rent collection duties each month.
It’s simply a system that allows tenants to pay their rent via ACH transfer, Credit Card, Debit Card, or other online payment services such as PayPal. You are probably familiar with all of these payment methods including the ACH, which stands for Automated Clearing House.
ACH is a network of over 10,000 institutions that batch-process direct payments and direct deposits electronically instead of the old manual, paper method. If you ever had an employer deposit your paycheck directly into your bank account, it was via the ACH system.
The free online rent collection services listed below only collect rent online for free if you use the ACH transfer option. Keep in mind ACH is generally slower than other rent collection options. But there are definite benefits over a paper check. The idea that your money is available instantly when you deposit a check is a common misconception about how banks process paper checks.
Depending on your bank, it may look like a check’s amount are added to your bank account’s available balance the same day you deposit the check. In actuality, the bank is fronting the money, trusting the check is good and holding you responsible for it if it is not. Sometimes the bank does not find out if the check is good for up to 2-3 weeks after the check was deposited. If you deposit a bad check, the bank will withdraw the funds from your account.
Note: Cozy and Apartments.com have come together to bring you the next generation of FREE online rental management tools. Most Cozy accounts will be automatically transitioned over to Apartments.com by mid-2021. Learn more about the change
Whether you are a renter or a landlord, the online rental collection is a very appealing option in these uncertain times. In addition, if you can find the tools to do this at no cost it's even better. We want to help our communities continue to do business the safest most efficient ways possible. We are here for you Minnesota!