Single family property management companies have much to gain from using online payment options. Instead of chasing down checks during rent week, property managers can easily track which tenants have paid, and when, using an online system. This fast, convenient option is also ideal for tenants who can choose their preferred payment option and pay rent on their own schedule.
At the same time, making the move to online payments can be confusing and expensive if the right system is not in place. Property managers often fear that payment processing will become difficult, extra costs will be incurred, or their business will be exposed to legal risks upon switching.
So how do you determine what payment options are best for your single family business? In this article, we will explore the ins and outs of online payments to help you decide.
Evaluating the Risk of Online Payments
While tenants enjoy the convenience and flexibility of online payments, property management companies often take on the burden of the additional cost and legalities. Transaction fees can be as high as 3.5% and since the average monthly rent for a U.S. single family home is $1,500, this adds up quickly.
On top of the extra cost, property managers must thoroughly research all related laws to stay compliant and protect their business. For example, property managers must determine whether it is legal to place surcharges and convenience fees on credit and debit card users, otherwise forcing the property management company to foot the bill.
Managing Tenant Payments with Ease
How can you provide tenants with the flexible payment options they need, without exposing your company to legal and financial risks? Enlist the help of an accredited payments provider. The right solution allows tenants to pay rent and other fees electronically and supports multiple methods of payments, making tenant collections less stressful for everyone.
Propertyware Payments is an electronic rental payment-processing platform that makes collecting rent and fees fast, easy and convenient. With the ResidentDirect service, powered by RealPage Payments Services (RPPS), tenants will see a transaction fee that is charged when they pay on a self-service tenant portal. By shifting the responsibility for these extra costs away from your company, you can reduce operating expense while giving tenants convenient and affordable payment options.
RPPS is PCI Compliant to help protect your business from legal risk. RPPS is also a licensed money services business registered with the U.S. Department of the Treasury and state banking regulators in 49 out of 50 states. As a result, RPPS has you covered even if you manage properties in multiple locations across the U.S.
Simplifying Owner Disbursements and Vendor Payments
Tenants aren’t the only ones who need access to online payments. As a property manager, you understand the importance of providing owners with online access so that they can check their balance and make contributions to their portfolio. You also need a way to pay owners and vendors quickly and easily.
With Propertyware, online contributions, owner disbursements, and vendor payments are integrated with the owner ledger so data doesn’t have to be entered more than once. Notifications are also automatically sent out to owners and vendors when payments are pending, so everyone stays on the same page.
Choose an online solution that supports hassle-free collections and payments. Learn more about how Propertyware Payments can benefit your business by taking a free tour today!