You may be contemplating the idea of introducing online payments for your rental real estate business. If you are, this article is designed to provide you with visibility into some common questions your tenants might have as you talk to them about collecting rent online.
Common questions from tenants
This is the list of the most common questions we have heard from tenants transitioning to online rent collection.
Do I control when the rent is paid?
Yes, your tenant controls when their rent payment is submitted by logging into their account and clicking the “Pay Now” button. If your tenant does not click the button, rent will remain unpaid until they do. You as the landlord do not have access to their banking information or their RentMindMe profile, so it is their responsibility to make sure they pay.
They can also elect to pay via a recurring schedule to avoid late fees.
Does paying rent online cost me anything?
It depends on whether you as a landlord elect to charge a convenience fee or not. Your subscription with our service provides the ability to collect rent online. When you create your lease terms, you have the ability to add custom fees to the monthly invoice. In the event you wanted to offset some of the cost of your subscription, you could charge for online rent payments. The choice is yours.
How long does it take for the money to come out of my account?
Rent payments will be held by your tenant’s bank once the payment is initiated. However, all payments have to process through the ACH clearing house so it may take a couple of days for the rent transaction to clear.
As a landlord you will receive your direct deposit within 2-3 business days depending on holidays.
Here are some additional tips and suggestions to help make the transition to collecting rent online easy.
Emphasize the convenience
When your tenant’s get their rent reminder, all they do is click a button and rent is paid. We’ve made it super easy!
Recommend your tenants setup a rent or bills account
If your tenants are worried about being tight on money and like having the rent out of their account as quickly as possible. We have suggested they open a bills account.
Most banks offer a free checking account that has no minimum balance requirements. You can recommend your tenants setup a bank account specifically for their recurring bills like rent, car payments and other fixed charges they incur each month.
Set deadlines with regard to the change
Tell your tenants you expect them to be transitioned to online payments by a specific date. This will give them time to get setup and it demonstrates that you are respectful of their busy schedules.
Update your leases to include collecting rent online
We recommend updating your lease to include online rent collection as the option for paying rent. Doing this conveys your intent and communicates your expectations when a new lease is signed.
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