Property Management Software and e-Payments
If you are a property manager or a property owner, undoubtedly the ability to collect rent and pay invoices is of utmost importance. Gone are the days of paper invoices and postage stamps.
Property management has begun moving into the technology age over the past 10 years, but more increasingly over the last 2-3 years. As the general population learns the latest technology, increasingly property owners and managers are more willing (and less afraid) of going electronic.
Main Types of e-Payment Methods
With so many benefits to electronic property management software, one of the highest rated benefits is that of e-Payments. e-Payments are made up of generally 3 primary options.
- Credit Cards
Cost of Implementing e-Payment Solutions
There is a direct cost for any e-pay solution. However, when you consider the amount of personal time it requires for the traditional methods, the e-pay solution is far less expensive. ACH and e-Checks are the least expensive options over the credit cards. Credits card companies typically charge around 2.7-2.9% of the transaction amount. While ACH or e-checks typically range from .08% with some cap or .25c – $1.00 per transaction.
Most property managers pass this cost off to the tenant as a “convenience fee”. Tenants are usually ok with this due to the time it saves them the standard way.
So consider a charge of $1.00 for collecting a rent payment. As the property owner or manager, the traditional way would require you to create an invoice, print and mail or email the invoice. You must also remember to do this early enough. Then the tenant writes a check and puts it in the mail back to you. You receive the payment in 3-4 days. You then must record the payment and then record the deposit. You must also actually make the deposit, which typically means driving to the bank with cash and or checks from your tenants. Would you, your tenant, vendor or property owner be willing to pay $1 to eliminate all that? From an ROI standpoint, it’s what they call a ‘no brainer’.
In order for an e-payment system to be completely beneficial to landlords and property managers, payments must be able to flow freely in both directions and between all parties. For example,
- Tenants paying invoice to Property Manager
- Property Managers returning security deposits to Tenants
- Vendors sending invoices (bills) to Property Managers
- Property Managers paying Vendors
- Property Owners paying their management invoices to Property Managers
- Property Managers sending Property Owners their monthly net profits
There are several advantages for implementing an e-payment solution. Here are some of the main advantages:
- Fewer errors
- Payments with no manual efforts
- Timely transactions
- 24/7 processing
Automated e-Payments in Online Property Management Software
With many of the property management online applications, they include some type of e-payment solution. The smaller applications usually do not include this feature. The more technology changes, the more options there will be regarding automated payments. Online Property management software vendors should stay abreast of new technology and have the ability to implement and update their applications accordingly.
PropertyZar is a real estate technology company specifically in the web-based property management software for owners and professional property managers. Learn more www.PropertyZar.com