Clear and Transparent: Peace of Mind Through Online Payment Processing

Maybe you’ve been there. Sifting through your mail for the 30th time, searching for that rental payment your tenant just swears they sent to you weeks ago. Except it isn’t there. No envelope, no letter, and, most importantly, no check. But they tell a different story, and you find yourselves at an impasse.

All too often, and in many different fashions, this is the experience of landlords still collecting rental payments the old-fashioned way. When things go awry, as they are wont to do when the process is completely manual, it’s ultimately the word of one party versus another. And if you’ve been here before, you know that it also often doesn’t end well for the landlord.

Lucky for you, it is the 21st century and technology has come a long way from the time when kids were taught in grade school how to properly write checks. These days, the majority of our bills are paid online, and rental dues are no exception. There is a myriad of options available to landlords when it comes to making the jump from manual to digital payment processing, but before you get in the weeds with alternatives, it’s important to understand why making that change will be beneficial to your business.

One of the best parts about going green and eliminating the physical paper trail is that it gets replaced with a digital one. This moves your business from one of maybe’s and could-be's to one of absolute certainty, and takes care of your pesky “he said, she said” issues in a few different ways.

1.Access and Information for All Parties

While it’s incredibly important as a landlord to have a detailed record of all payment activity, it’s just as helpful for tenants. And when you’re keeping your ledger manually, on a legal pad or in an excel file, that mutual transparency is a bit more challenging, not to mention laborious.

The use of an online payment processor and property management software allows both parties access to a running record of transactions. They can view what, when, and how each payment was made. Most platforms will also provide an audit log that notates all changes made to the invoice. This could include anything from a cancelled payment to the waiving of a late fee. This finer detail could come especially in handy if a dispute ever were to arise.

2.Enhanced Credibility of IP Address

When it comes to identifiers online, there is no match for the credibility that comes with an IP address. You may be familiar with the term as something that is unique to your device. IP stands for “Internet Protocol”. In short, it is a distinct number that is associated with all of your activity online. So whatever platforms or sites you are interacting with using this device, your IP address is watermarked on it.

And while this kind of detailed cyber-sleuthing may seem like it’s out of your league, the use of IP addresses can be quite helpful if you do find yourself in a more serious dispute. Online payment processors gather the IP addresses of all devices from which payments are made. From this information, you can learn the time and location as well. This can be critical data used to verify the authenticity of a transaction.

Additionally, the feature of unique identifiers can also benefit your tenants. In some cases, there are multiple paying tenants on the same lease. This requires a divvying up of total amount on their end and an agreement to make good on that monthly commitment. If there ever were a situation where one roommate was not holding up his or her end of the bargain, it would not be difficult to determine who, with the use of login information. Because property management software requires each user to have their own credentials, it’s easy to track who has paid, how much, and when.

3.The Almighty Timestamp

This is a simple and standard feature, so it may not seem worth noting. However, this is one of the biggest differences between the manual and digital way of doing things. Having an irrefutable timestamp for when payment occurs is invaluable for landlords who struggle with late-paying renters.

It can be uncomfortable enough to accuse someone of not making good on their commitment to pay in a timely fashion. But things get even stickier when the tenant denies your claim. Timestamps take all the emotion and frustration out of the equation, as they are fact and cannot be argued.

4.A History of Payment

Another perk of the transparency of online payments is the running record of payment. This is especially helpful for landlords who manage a high volume of tenants, making it difficult to know their people at a glance.

With the historical payment record you can easily spot trends for reliable renters, and more importantly, those who are not as consistent. This can help you determine who might be worthy of an extended grace period or waived late fee and who is due for a polite but strongly-worded email.

The digital ledger can also be beneficial to tenants looking to get a handle on their own flow of expenses. They can review their payments for the month or year, and even review the security deposit information without having to get you involved.

 

Online Payment Processing is the Clear Choice

All-in-all, if you’re looking for a way to be even more up front and honest with your tenants, there is no better way than going digital. Not only does online payment processing afford you the most accurate, detailed, and accessible record of transaction and activity; but it also is a sign of true transparency toward your tenants.

Renters are looking for a landlord they can trust, and what is more trustworthy than putting it all out there for all parties to see? Using an online rental platform will strengthen your ability to manage your tenants, settle any type of dispute, and be confident in the knowledge that every action is accounted for. So, when it comes to being more transparent, the answer is clear. Online payment processing is the crystal standard.