Property managers have their work cut out for them, juggling multiple responsibilities every day. Collecting common area fees and homeowners association (HOA) fees is a foundational part of a successful property management business, so it’s crucial to make that process as easy as possible for both sides.
When it comes to collecting fees, several new electronic forms of payment are in play in the digital age, including automated clearing house (ACH) payments and electronic funds transfers (EFTs).
Keep reading to learn more about modern property management payment solutions and how they benefit residents and, by extension, property management companies.
What is the difference between ACH and EFT?
Let’s talk about ACH versus EFT. ACH payments are bank-to-bank transfers that go through an ACH network for review. Common examples include payroll direct deposits and automatic bill payments. ACH payments occur in groups or batches.
EFT payments also include transfers between banks. However, EFT payments avoid going through the ACH network and instead take place directly between parties. Examples of EFT payments include ATM withdrawals, online purchases with a credit card, and even Cash App or Venmo payments between friends.
Ultimately, the differences between ACH and EFT are minor, and both are convenient payment options with many upsides. It’s a good idea to explore both options and see which is right for your property management organization.
What are the benefits of electronic payment options?
Now that you have a general understanding of ACH and EFT, let’s examine some of the benefits that come with using electronic property management payment solutions:
Electronic payments are generally faster and easier to complete because they eliminate the need to hold or transfer paper currency or checks. For this reason, more and more consumers are going cashless. In fact, 36 percent of Americans who like to use cash use cashless methods more than they did in the past.
Gain credit card points.
Using credit cards can also generate points that add up over time—especially if you’re running credit card payments at scale. Residents can also pay common area fees using credit cards to get their own points.
Although credit card companies often charge fees, it’s possible to offset them by adding a surcharge to residents who choose to pay by card. You can also increase fees, utilize ACH, or negotiate with payment processors to lower costs.
Processing payments electronically saves time and makes daily management easier. Using electronic payments, it’s possible to collect funds from owners much faster. Leading solutions also automate the billing process, reducing manual labor, decreasing clerical errors, and freeing you to focus on other important tasks.
Choose a method of payment for property management.
When it comes time to select a payment method, there are many payment tools to choose from—including ClickPay and Zego (powered by PayLease). But if you’re going to invest in such a service, you might as well go big and get a complete property management payment solution that enables electronic payments.
For example, NetIntegrity is a one-stop shop that serves as a complete property management software solution. Netintegrity provides everything you need to keep your business running smoothly, centralizing operations and reducing the number of management programs you have to track. By partnering with PayPal for online payments, NetIntegrity makes transferring money electronically a breeze.
Enhance your property management business with Netintegrity.
The world is changing, and more property management companies are embracing electronic payments. In light of this, now is a great time to make the leap and digitize your payment system. In doing so, you can save time, streamline management, and help provide a smoother owner experience.
Netintegrity not only makes it easier for owners to pay and property managers to collect fees, but also delivers many other efficiency gains for your business—including powerful reporting features and convenient tools for communicating with customers, partners, and vendors.
To learn more about Netintegrity, request a demo today.