Ways to Convince Your Tenants to Pay the Rent Online

Processing rent checks manually is both time-consuming and costly. It usually takes about five minutes and $2-3 per check. If you are expecting 500 checks monthly, this could take almost 42 hours and $12-15,000 every year. If you want a more cost-efficient and timely manner to collect rent, you can implement an online rent collection system with the help of your web-based property management software, which allows you to cut costs in half. It also lets you avoid the dilemma of waiting for checks to appear in the mail or personally collecting the rent.

All you have to do is encourage your residents to agree to this program. You will probably not have any issues with your technically advanced tenants who already use online banking.

On the other hand, other tenants may not be in favor to this idea. In this regard, here are 10 ways to encourage your tenants to opt for online rent payment:

Give an incentive for paying online. You can reduce the rent by $20-30 to encourage your more thrifty tenants.

Give a 2-payment date option for online payments – for example, on the first and fifth of every month. This flexible payment option can motivate residents.

Offer an incentive for signing up such as a $30 gift card from a restaurant.

Create a raffle to win $100 gift certificate from a local store, and let all those who sign up for online rent payment join.

Tell them that rent payments are reported to credit agencies nationwide, allowing them to boost their credit standing.

Explain why online payments are environmentally friendly. Nowadays, more people choose to go green.

Create an FAQ sheet and hand out to tenants. List the advantages given by online payments, which include the convenience of saving time on writing checks and avoiding late payment fees.

In the rental agreement, include the requirement to pay online (California and other states have laws that prevent this).

If they refuse to pay online, charge an additional service fee per month.

As a landlord, be responsible. Whenever there are customer issues, respond immediately. Maintain your property well. When you look after your tenants, they will cooperate and more likely give in to your request to pay rent online.

Just like other issues, the most effective way to convince your residents to pay rent online is to have constant communication and be transparent with them. The moment they realize how beneficial this could be to them and of course, you, they may be convinced to sign up.

If your tenants would be able to pay rent with credit card, the process would be much faster and simpler for everyone involved. It’s about time to start thinking about this and find an online rent payment service.

How Do You Know It’s Time To Get Real Estate Management Software?

There are endless opportunities in the real estate industry, but the truth is that it can get stressful to manage especially when you do not have all the necessary tools. When you are in the property business, you will not only need to put in measures to attract tenants and maintain them, but you will also need to have proper management planning to ensure that you have an easy time keeping an eye on everything that touches on the property.

Real estate management software are designed to assist property owners, investors and property managers with an easier time managing the property. Sticking to traditional management practices that only accumulate documents that become harder to manage can be messy and tedious. When you have the right one you will have a swift process of getting things done, communicating and keeping things neat and organized so it is much easier to handle your real estate. You should consider getting the right real estate management software if:

You have challenges keeping an eye on payments. If there is something that really matters in real estate is tracking payments. If you find that you have issues keeping records of rental payments, tracking late payments and expenses related to the property, then it should be time to get yourself a solution. Paper records can be tough to keep up and you could end up losing cash and time trying to calculate and clarify them. The right real estate management software will give you a paperless way of tracking all payments and recording them as appropriate.

You experience delays in dealing with maintenance requests. Such delays lead to tenant dissatisfaction and this is not something you really want for your property. When you seem to have issues with your move-in and move out procedures and find it hard to keep up with the property needs, you should consider getting a little more organized. Getting real estate management software will save you from all the confusion that can end up harming the property as far as the tenancy is concerned.

You have missing documents and checks. They are the expected consequences of keeping up with traditional property management. You will end up losing money, especially when you can’t seem to find checks sent to you by tenants or other important documents. Real estate management software makes it easy for you to maintain all important data. When you have a good solution handy, you will also manage to give your tenants an easy time making payments through the right channels without any chance of confusions.

You are overwhelmed by the tasks that need to be done. Property management can come with plenty of tasks to manage and it can be overwhelming for you or your property manager. Some management processes are too complex and apart from demanding lots of your time they can easily wear you out. Real estate management software offers that extra convenience layer to the tasks and processes so you have fewer things to do. It can do some of the tasks automatically saving you the time and energy you would have otherwise used to accomplish them.

Real estate management software come with lots of benefits to property owners and managers. The solution you get for the property may also come with features that give your tenants an experience just as pleasant getting things done and reaching out to you.

The 7 Crucial Parts of the Application Process When Renting an Apartment / Home

Rental applications, whether submitted on line via a website or by hard copy, should go through a standard process to determine the eligibility of the applicant. Here are some criteria that should be considered. The process should always be the same for each applicant, remembering to always follow

1. Application fee. This will cover the costs of processing an application and should be paid with the application submission. Many companies charge between $30 and $60 per application.

2. Income. A good standard measure is an Income to Rent Ratio of 3.0, (gross monthly income of three times the monthly rent). This income could be from current employment, Government payouts such as SSI, Child Support, Assistance agencies such as Section 8, and Pensions. The Applicants must supply confirmation for all their income. An applicant which does not meet the 3.0 requirement may be required to have a Co-Signer who would also need to meet the requirements. For payroll income, it is best to have a current paystub which shows the Year-To Date income over a period of time, rather than a onetime payroll amount.

3. Criminal Background. A good credit reporting service will give at least 10 years of law enforcement records on an applicant.

4. Eviction History. It is important to know if the applicant has had any evictions over the last 5 to 10 years.

5. Credit History. It is advantageous to use a service which gives a concise summary of the credit background. The important items are the number of positive and negative trade lines, past due amounts and current collections. Medical bills and student loan debt does not receive the same weight as outstanding charges from utilities and credit card accounts. A good report service will also give a list of civil judgments, bankruptcies, etc.

6. Rental History. Applicant should supply at least two years of verifiable residency. If the applicant is breaking a lease, they should supply a written release from the current landlord.

7. Age of Applicant. The applicant should be at least 18 years of age and all adult occupants should be required to complete a separate application and submit it along with income verification.

The preface to the rental application should enumerate items that would disqualify an applicant, such as eviction by previous landlord, undisclosed criminal record, conviction of certain crimes such as child abuse, current Bankruptcy proceedings, false information on the application, etc.

In keeping with the above criteria, this should enable one to determine the prospective tenant’s ability to maintain the rental payments in a timely manner.

Helpful Tips For Better Real Estate Management

Managing rental properties can be a tedious process sometimes landing you into legal issues. As a property manager or owner, you should think about preventing problems even before they occur to have an easier time maintaining order. Apart from making your tenants feel worthy, you should also find ways of making the management process easy for you especially when handling large properties or multiple properties. When you are organized in how you handle your property, it becomes easier to keep everything in check and a few tips can help you put in the best measures into the management process.

Tip 1 – Get a professional property manager

If you are a property owner with little knowledge of how to go about management, you should consider getting a professional property manager to ease out the process for you. Professional managers with some knowledge and experience in the real estate industry will know exactly how to go about the process and find organizational solutions to ease everything out. When there is a manager in place, you will feel more at peace and have fewer issues to deal with.

Tip 2 – Embrace technology

There are very effective real estate management solutions available thanks to technological advancements. Real estate management software is among the best solutions you can find to make the process easy and organized. Such a solution can improve communications and payments and data maintenance for the property. With the right system you will have an easy time collecting, returning and holding security deposits, as well as inspecting and documenting rental unit conditions before move-outs. There is just so much you can do with real estate management software to streamline processes so look for the best solution.

Tip 3 – Handle tenants appropriately

First of all you should consider screening tenants before allowing them into your property. It is a simple way of keeping troublesome characters off your property. It is also important that you put tenant landlord agreement in writing to keep things clear and ensure that you treat all tenants equally and without any discrimination. Discriminating prospective tenants based on sex, race, origin, disability or even familial status can land you into trouble. It is also important to respect their personal privacy even if the property is yours by notifying them prior to entering their rental units. Handling tenants appropriately will save you from a lot of trouble especially legally.

Tip 4 – Keep the property in top shape

Regular inspections are very important so you can make any improvements and changes where need be. Recklessness on your part leading to safety and security issues can lead to hefty losses in terms of compensations. You should therefore make a point of making prompt repairs and consider having a security system in place to give your tenants the sense of security they deserve as well as ensure that their safety is not compromised in any way.

Tip 5 – Oversee managers

They should be competent enough to keep your property in check. It is therefore important that as a landlord you choose and supervise property managers. Background checks and clearly spelling out their duties will prevent issues cropping out later.

Real estate management can be made easy using relevant software solutions. You can find all kinds of solutions in Dubai to make the management process easier for you.

How Do You Select The Best Property Management Software?

Property management can be a challenge, especially without the right tools. Getting the right software program is very essential in helping you streamline the process of handling your growing business and to keep it organized. More and more companies are eliminating paperwork by choosing software solutions that can handle all important functions including management of documents. But then how do you go about selecting the best property management software for your business?

Step 1 – Start by focusing on what you need

Avoid choosing software that is an overkill or under-kill for your business. It is important that you evaluate exactly what you need the software program for; you can separate office accounting needs from property management needs to cut costs of the software program. Consider whether it is important for the system to help you with tenant background checks, liability and asset accounting and budgeting so you do not waste your time on a solution you really do not need. Whereas you do not want to go overboard when choosing the system, you also do not want to end up with a program that cannot handle the most basic things for your business. It helps to at least ensure that the management software you settle for can automatically post management fees, rent and late fees, maintain separate ledgers for tenants and owners, easily update information via a friendly interface, handle different property types without additional module buying and deal with bank deposits and checks.

Step 2 – Check all important features

There are so many features that may not be that critical to the management process of the property, but they will prove to be valuable on your software. Some of the features that can make a difference in your system include reminder features to help track appointments, pop-up lists of owners and tenants owing you money, features that help check tenant info for log back payments and credit references, automated rent amount updates, automated account updates and other. The more you are able to do with the program the better the convenience you stand to enjoy running your property business.

Step 3 – Confirm support, reliability and reasonable pricing

Most property management software companies fail in offering the needed support. Some may even compel you to pay for software updates to enjoy technical support, whereas others may offer free support for a limited time frame and start charging for any support beyond that. Choose a support plan you can fully trust in and rely on. On the same line, you should take the mandate to check for any hidden costs when buying the software. Ask as many relevant questions as possible and read as much as you can about what you stand to gain using the solution before making the final purchase. It helps to choose a software program that is easy to install and use and one that comes with a comprehensive inbuilt help file. Keep off programs that require you pay for updates and research.