As a property manager, one of the best ways to increase the number of tenants that pay on time is to add the capability of paying online. Tenants that are able to pay online will have the flexibility that they need to take their operations mobile just as they do their IT infrastructure. Instead of showing up on a specific day with a check, they can use their suite or apartment as a remote office or second location and pay from a centralized spot, not to mention the added benefit of getting rewards points.
Set up recurring payments that allow them to forget about making a monthly rent payment because it is automatic and doesn't require that they do anything other than keep the bank account that is being used topped up with funds. Each month on a set date, their bank account or credit card can be set to automatically transfer funds into your account.
Consistently keep their credit-worthiness up-to-date. A history of payments from their credit card that is attached to a bank account will allow them to maintain a higher credit rating than what they would have if they were just paying you cash. When you pay in cash or by check, it shows that you are making regular payments and there is no negative by your name. Your credit history isn't too affected by this because you are not using credit. When you set your account to pay through your credit card and make an automatic payment that sets your credit card balance back to zero each month, your credit rating improves because you are using credit and making a timely payment each month.
For property managers, the benefits of using a merchant account are also immediately obvious. Not only do you increase the percentage of tenants that pay on schedule, you can also:
- Lower the amount of staff time that it takes to process the monthly payments of your tenants. In turn this can mean that you can look at other solutions for specific-sizes of complexes and buildings that you manage. Instead of an onsite, full-time manager, you may be able to save money and just use your contractor services to handle maintenance requests. You may no longer need to have employees there to take money and process money.
- Decrease the amount of late payments, when renters are on recurred billing they are rarely late as it is auto billed on the same day every month.
- Increased security is also a benefit. Instead of having your workers take cash and checks to a bank, where they are exposed to potential robbery, your merchant account is encrypted digitally and processes transactions in a way that protects both you and your customers.
Getting a merchant account when you are a property manager isn't always the easiest proposition. Their credit policy won’t allow for CNP Card Not Present transactions of high amounts (rental rates can be in the thousands) and recurred billing.
Fortunately, PaymentCloud specializes in merchant accounts of this nature and can get you setup and approved to take credit card payments. Please contact us right away to get started.