Top 10 reasons to collect rent online
Why so many landlords are saying goodbye to paper rent checks to collect rent online
When Emma bought her first rental property for $18,000, she didn’t know what kind of challenges she’d face. She quickly learned how to fix up what she calls “ugly-duck properties,” but as she bought more rentals, one task became increasingly stressful: collecting rent.
“I was sick of trying to hassle my tenants for checks,” said Emma, who now owns and manages ten rental properties in Kansas City. She wondered if there was an easy way to collect rent online.
Many times, her tenants would tell her the check was lost in the mail. “It’s always the tenant’s word against the post office, and who’s to blame?” she said. “I don’t know if the tenant is lying or the post office really does take longer than expected.”
Sometimes she even went to her tenants’ houses and knocked on the door to collect rent. She knew there had to be a better way.
Eventually she found Cozy. At first she was hesitant to try something new, but after a few months of receiving rent payments directly in her bank account, she was hooked. Now she has a provision in her lease that says she won’t accept paper checks. All payments must go through Cozy.
If you’re a landlord who hasn’t yet discovered the benefits of collecting rent online, we want to help you understand the perks. So we asked landlords like Emma — who’ve made the switch — to tell us how collecting rent online has helped them.
Top 10 reasons to collect rent online
- Saves you time. Instead of driving to the post office to see if the check’s finally arrived in your P.O. box, or worrying about where and when you’ll deposit the check when you have it in hand, the rent lands in your bank account. Collecting payments online is convenient and takes zero effort. Online rent collection is one key element to creating a thriving property management business.
- Helps keep important info secure, for you and your tenant. Think about what’s written on a check: a bank account number, routing number, and personal information (sometimes even a phone number). Having pieces of paper floating around with this info is a risk, something you become liable for every time you take possession of a tenant’s check.
- Lessens your stress. You can forget about collecting rent. No need to send a monthly invoice, make phone calls, or knock on doors. You’ll see the rent payment land in your bank account every month. For larger landlords, like those who collect more than $1 million in rent every year, online rent collection is essential.
- Helps you build steady cash flow. If you use Cozy, we’ll send you a notification when a tenant’s payment starts processing, so you can know exactly when the rent will actually land in your account.
- Keeps you informed about who pays you rent. In many parts of the country, landlords need to know who’s making the rent payments, because payments define who’s a tenant by law. With Cozy, you’ll always know who’s paying and how much.
- Makes your tenants happy! Most of your tenants probably already pay their bills online, so they’ll thank you for taking another check out of the equation. They’ll consider it one of the benefits of renting from you.
- Helps you stay organized. If you collect rent online with Cozy, you can easily export your income data into one straightforward spreadsheet, which makes tax prep easier.
- Makes collecting other payments easy. Once you’re set up in Cozy, you can easily request everything from security and pet deposits to other one-time utility charges and late fees.
- Creates an easy way to resolve payment issues. If your tenant’s payment fails due to insufficient funds, we’ll promptly let you know. We’ll help your tenant schedule another payment using a different bank account or card through Cozy, so you can get paid right away.
- Creates flexibility with your finances. In Cozy, you can arrange for deposits to land in different bank accounts to help your business run more smoothly.
Remember, you don’t have to switch all your tenants to online payments at once. Next time you have a new tenant, ask to collect their rent through Cozy and see how it goes. After all, online rent collection is totally free for landlords in Cozy, so what do you have to lose?
Soon you’ll be like Emma: adding more properties to your portfolio and feeling confident that the check really isn’t in the mail.
Originally published at cozy.co.