Last editedFeb 20232 min read
If you only manage one or two units, collecting rent payments is a straightforward process. Yet as your property management portfolio grows, so does the complexity of rent payment management. There are many benefits of using an online rent payment system; not only does it help you schedule and track payments, but it keeps everything in one place for better record keeping. Here’s how to get started.
What is rent payment management?
There are two main aspects of property management. You need to protect the property’s value with regular repairs and maintenance, and you must collect rent from tenants. Yet when it comes to rent collection, there’s a wide range of options.
Rent payment management involves all the tasks associated with calculating, scheduling, and collecting rent from your tenants. To get started, you must determine the frequency and amount for your rental payments. Most landlords will opt for a monthly schedule, though others might take weekly or fortnightly rental payments.
In addition to scheduling and collecting rent, you’ll need to record payments as they’re received and reconcile these in your accounts. Rent payment management also requires that you regularly review and adjust rental amounts as needed according to market fluctuations and tenant contracts.
How do landlords collect rent payment?
When it comes to collecting payment, you have a variety of methods to choose from. If you have a longstanding relationship with trusted tenants, you can ask them to set up a standing order or initiate a bank transfer into your account at the agreed-upon interval. It’s helpful to send payment reminders as rent due dates grow close to avoid late or forgotten payment.
Another option is to collect rent in person from your tenants, though this is not feasible if you live at a distance or manage a high volume of properties. Accepting in-person payments allows you to accept cash, cheques, and other traditional payment methods. Some property managers still collect rent through the mail, though this is becoming less popular due to security issues and payment delays.
What are the benefits of an online rent payment system?
Today, most property managers opt for an online rent payment system instead of the options outlined above. Using an online system, you can send payment requests for direct bank transfers or set up automated recurring payments. Rent management software makes it easy to keep track of upcoming payments, recording them in a central dashboard with no need for paper invoices or receipts. It’s easy to get started using today’s software, cutting down on the potential for human error and eliminating paperwork.
How to choose the best rent payment software
There’s a varied selection of accounting and billing software to help manage the rent payment process. The best rent payment software will be able to facilitate payment collection, manage maintenance requests, schedule updates, and more. Many cloud-based platforms include client-facing portals allowing your tenants to log in and make a secure payment online.
Some of the best rent payment software in Australia include platforms like RealRenta, DoorLoop, and RentPay, all of which are specifically designed for rent payment management. Yet you can also turn to automatic invoicing platforms like GoCardless to set up recurring direct debit payments.
With GoCardless, you can ensure you’re paid on time, every time, without the burden of manual paperwork. You can set up the amount and timing of each rent payment with your tenant, pulling the rent from their bank account each month. If the tenant has insufficient funds to make rent, you’ll both be notified before the payment goes through. We also partner with accounting software like Xero and others so that you can manage bookkeeping and billing all from a central platform.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.