Posted by Remen Okoruwa ● Aug 31, 2020 9:00:00 AM

5 Reasons Why Collecting Rent Online Beats Paper Checks

pay rent online

Landlords need healthy cash flow to run a successful rental business. Collecting rent on time is the only way that rental property owners can ensure that they don’t run into financial difficulties. Traditionally, tenants pay rent by mailing a check. But why should you switch to collecting rent online, rather than getting rent checks?

Checks can be a nightmare for both landlords and tenants. Apart from forgetting to send the check, paper checks can get lost in the post or result in identity fraud. Also, landlords have the added problems of depositing the check and waiting for the funds to clear.

With so many problems associated with rent checks, it’s a wonder they are still so popular.

Here are the top five reasons why you should be collecting rent online.

1. Online rent collection saves time

First, you can save a ton of time by collecting rent online. You receive rent payments automatically in your bank account—all from the comfort of your home or office. So, no more trips to the post office and bank to collect and then deposit rent checks.

 

2. Accept multiple payment methods

Most people pay their bills online anyway because it’s more convenient. Using a rent collection app, you can accept the following payment methods:

  • Debit or credit card
  • eCheck
  • ACH direct deposit

3. Collect rent on time

Tenants can avoid making late rent payments when they can pay rent online. Renters can set up automatic payments, meaning they are never late with their rent, and they avoid late fees. You can also send SMS text message reminders to prevent late rent payments.

 

4. Process payments quicker

In most cases, collecting rent online means that rental payments are in your bank account instantly. From the time a tenant mails their rent check until the funds clear in your bank can take up to seven days.

 

5. Better security

The potential for check fraud is exceptionally high. Collecting rent online means neither you nor your tenant has to share sensitive financial data.

 

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Remen Okoruwa is the co-founder of RentDrop, a free software tool that helps landlords and property managers collect rent and maintain their units. 

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