Collecting rent payments online is beneficial to everyone involved. For tenants, being able to securely pay electronically is quick and convenient. For landlords and property managers, it means faster access to funds, which equates to better cash flow. It’s also much more efficient than having to manually process physical payments. That said, some tenants may be hesitant about paying their rent through an online portal. Here are a few common concerns and how you can overcome them.
They confuse online payments with recurring payments.
With some companies, such as utility providers, agreeing to pay electronically means allowing that company to automatically withdraw money when it’s due. For individuals who may struggle financially, there may be a concern about a potential overdraft situation. Let your tenants know that when they pay online, they remain in control of when and how that payment is made.
They’re concerned about security.
With so many stories about cybercrimes being committed and security breaches occurring on a regular basis, it’s understandable why some people are leery about sharing their payment information online. Provided that you’re using a quality property management software that offers a secure online payment portal, you can confidently assure your tenants that their information will be kept safe.
They worry you’ll have access to their account.
Another concern some renters have about paying electronically is that in connecting their bank account or credit card to the online portal, the landlord or property manager will be able to gain access to their funds. This is simply not true. Make sure your tenants understand that the only time funds can be moved from one account to the other is at their authorization.
They don’t think there will be proof of payment.
Some people simply feel more comfortable when they have a paper receipt or a cancelled check as proof that they’ve paid what’s owed. You can overcome this concern about online payments by explaining that when rent is paid via the electronic portal, it creates a digital record that serves as verification of payment. This record is just as valid as a physical proof of payment.
They think it’s going to be difficult to figure out.
Change can be hard, regardless of age or technical know-how. Some renters may be hesitant to use an online portal simply because they’re concerned it will be too confusing or complicated. Again, provided you’ve invested in the right property management software, the user interface should be simple and straightforward. Just to be sure, provide step-by-step instructions or a video tutorial.
Collecting rent electronically is something property managers and landlords should be making a priority. By understanding the common reasons why a tenant may be resistant to making the switch, you can more effectively address and overcome those concerns once and for all. To learn more about Netintegrity’s secure online portal feature, click here.