Those who collect monthly Rent know for sure that this process can be troublesome. Especially, if you are one of those old-school landlords who still prefer paper checks over digital payments. In case you are doing this, there are two things you should know. First, you do a portion of unnecessary paperwork every month. Second, there is a way to make things better.
Here’s today’s rental industry in a nutshell. First and foremost, an increasing amount of Americans choose renting over buying. This means more tenants and more monthly payments. Next to that, the new generation of tenants is different. One-quarter of the U.S. market is already represented by millennials, and the majority of them have never used a paper check in their entire life. Not even once.
If you made it here, chances are good that you prefer keeping your finger on the pulse and learning about all recent trends within your industry. Here at Rentberry, we not only let landlords collect rent online, but also educate our users on this matter. Ready to learn something great?
Can You Trust Online Payments?
Absolutely. Here at Rentberry, we use ACH payments, one of the most widespread and trustworthy systems of electronic payments in the US. Also known as the Automated Clearing House, ACH payments allow sending money electronically between accounts at banks. The volume of ACH transactions has reached 24 billion electronic payments in 2016, and it keeps on growing.
Will This Cost You a Lot of Money?
Apart from being trustworthy, ACH payments are cost-efficient. Except cash, ACH has the lowest transaction fees. For example, a transfer of $500 would cost $1.22 via paper check, $9.60 via credit card, and only $0.55 via ACH.
To integrate payments into our rental platform, we had to find an ACH transfer product. That’s how we’ve partnered with Dwolla, a trustworthy payment processing solution. Due to this partnership, we can ensure the security of payments you receive, which is our top priority.
The Benefits of Collecting Rent Online
Collecting rent online is so convenient that we can come up with an endless list of reasons why it is better than paper checks. However, we value your time. That is why we’ll focus on the biggest advantages only.
Collecting rent online means receiving payments in a timely manner
Let’s face it, paying with a paper check takes time. If your tenants maintain a busy lifestyle, they might sometimes forget about their rent due date. This is how late payments happen. If you prefer collecting money on time, then you should definitely consider a move towards online payments.
It is easier to track your income when your tenants pay online
If you have a couple of units to rent out, it might be hard to track your monthly income. However, if your tenants are paying online, you can always sign in to your personal account and check your payment history.
More tenants will be interested in your property if you accept online payments
Earlier in this post, we mentioned that millennials make up a substantial part of tenants. Most of them do not welcome the idea of paper checks. For you it means one thing: if you do not want to lose profit, you should start collecting rent online as soon as possible.
When it comes to receiving rent payments digitally, there are many options to choose from. However, not all of them are created equally, and each one has its pros and cons. Here in Rentberry, we spend some time on studying the topic. As a result, ACH payments have become our top choice.
Generally speaking, ACH payments are simple money transfers from one bank account to another. Unlike payments via Credit Cards or PayPal, ACH payment is the cheapest option in terms of transaction fees. What is more, you and your tenants can set up recurring payments to ensure that monthly rent will be paid in a timely manner. ACH payments are secure, simple, and cheap.
Ready to make your life easier? Enjoy our step-by-step guide on how to collect rent from tenants via Rentberry.
- Sign in to your landlord’s account or sign up to create one.
Once you are logged in, click ‘Collect Rent’ at the top of your screen. This action will get you to your personal payment account, where the history of your tenants’ payments will be stored.
- Make sure to enter your personal information.
Click a purple button ‘Set Up Payment’. This will lead you to a page with information about your property, tenants, and financial details.
- Add your property address.
If your property is already listed on Rentberry, the right address will simply drop out. If you rent out more than one unit, choose the one you’d like to collect money for.
- Fill in your payment details.
To make things easier for you, we composed a list of most popular banks and credit unions to choose from. If you are using a less common bank, just go for our search tool.
As soon as your bank or credit union is added, fill in your user ID and password.
Provide responses to your bank’s security questions.
Click ‘Agree & Continue’, and your bank account will be attached.
Please, keep in mind that we neither collect nor have an access to your personal financial information. You see a pop-up window that belongs to your bank, not to Rentberry. This is how integration works. You can be sure that your information remains private and secure.
- Enter financial details for your property.
You will be asked to state the amount of monthly rent and pet/security deposits if you require them.
- Tell us about your tenant.
No need to know your tenant’s entire biography. The first name, last name, and email address will be just fine.
- Add your payment and you’ll be done.
Click ‘Add Payment’ button to proceed. As soon as you are done, we’ll send a notification to your tenant. Wait until he accepts your request, and you’ll be ready to collect your rent online.
Keep in mind, that sometimes your tenant can be a bit faster than you and send you an invitation to online payments prior to all those steps described above. When this happens, you’ll see a yellow notification saying that your tenant wants to pay rent online. In this case, you should just accept his request and add your personal information as mentioned in the second point.
One more thing worth being mentioned: you need to input all those information about your bank accounts and financial details only once. All the following payment collections will take you even less time and efforts. Sounds good, right?
Should you rent out via Rentberry to be able to collect rent online?
Not really. You do not have to rent out your property on Rentberry in order to use our handy payment system. You can sign up as a landlord and invite your tenant to register. Once the two of you are on Rentberry, you can use the service to collect monthly payments from your tenant.
Congratulations. You have just learned about the best way to collect rent online. Use your knowledge wisely and encourage other landlords to make this important move towards a better life.
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