Best Way to Accept Rental Payments
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Best Way to Accept Rental Payments
There’s no denying that the rental market is going through a chaotic time. With the steep rise in interest rates and the increase in housing shortages, it’s become more difficult than ever for renters to make rental payments on time. And unless interest rates drop and more housing is made available, there’s little anyone can do to ease the pressure. What most don’t realise is the stress these turbulent times place on property managers. It can be difficult for property managers to juggle late rental payments, struggling renters, and concerned property owners. While it’s not possible to escape this stress completely, finding the best way to accept rental payments so that life is easier for both you and your renters is an important step in the right direction.
What are the most common payment methods?
Before you can find the right payment processing solution, it’s important to understand what payment methods are out there and which ones are most popular. There a many ways to accept rental payments, including:
- Direct debit
- Direct bank transfer
- Credit card
- Debit card
- Deduction from pay or pension
Currently, the most popular payment methods Australians use to pay their rent include cash and direct bank transfer. However, both these methods rely on the customer remembering to manually pay their rent on time. Cash can also be a risky method of payment for both customers and property managers as it can be untraceable and is easily misplaced, miscalculated, or forgotten about.
Which payment method is best
Depending on which state you are in, property managers must provide tenants with either a variety of payment methods, or at least one payment method that is free. This makes direct debit a good choice for both property managers and tenants as it is free and secure.
What are the benefits of using direct debit for rental payments?
- For property managers: direct debit reduces the likelihood of late or missed payments, and reduces the occurrence of failed payments. It also saves property managers time by reducing administrative tasks like creating invoices, manually processing payments, and chasing tenants for late rent.
- For renters: direct debit allows them to ‘set and forget’ their rent so that they can keep on top of their payments. As a signed direct debit authority form (signed by the renter) is needed, it’s also a safe way to pay and renters can be assured that their account will not be debited without their consent.
What is the best way accept rental payments
Ultimately, the best way to accept rental payments is through a method that is reliable, traceable, and secure. Offering an online payment platform that is user-friendly and flexible can help encourage tenants to make their rental payments on time, and can help you to manage their accounts without additional administrative stress.
What the right rental payment platform should offer
Flexible payment schedules
Offering renters flexible payment schedules, such as weekly, fortnightly, or monthly, can increase your chances of on-time payments.
Various payment methods
While direct debit is a great choice, there may be times when this is not feasible for renters. Offering different payment methods, such as credit or debit cards, can help ease the pressure on renters and open up other avenues of payment.
Because you are dealing with others personal and sensitive information, it’s vital that your payment processing solution has comprehensive, built-in security and protection.
The right payment system should automate as many processes as possible to reduce the administrative pressure on you. Tasks such as payment reminders, receipts, and invoices.
Having the ability to run reports and view the status of your business at a glance is invaluable. This feature will save you time and provide an eagle eye view of your business so you can quickly identify areas needing improvement.
Biz Core is here to support you
As a property manager, you’re probably juggling endless priorities and tasks. Biz Core’s rental payment process platform is the lifesaver you need to keep on top of your properties, tenants, and accounts. Our payment processing solution works hard alongside you to provide the solutions and support you need.
With our advanced payment system, you’re able to:
- Keep track of rental payments
- Easily review and export payment histories
- Automatically provide payment receipts
- Automatically generate payment reminders
- Log, store and manage tenant information
- Upload and store important documents such as lease agreements and direct debit forms
- Offer flexible payment schedules with weekly, fortnightly or monthly options
- Offer various payment methods such as direct debit, recurring payments, and credit and debit cards.
Property management is stressful but with Biz Core’s adaptive and versatile payment processing platform, we’ll give you the tools you need to stay on top and help your tenants pay on time.
Contact Biz Core today for more information and a live demo!
What is the difference between direct debit and direct bank transfer?
Direct debit is an authorised transaction that allows a business to debit a customer’s account on a scheduled recurring basis. However, a direct bank transfer is when a customer can transfer a once-off payment from their bank account to a business.
What is direct debit reversal?
A direct debit reversal often occurs when a customer disputes a direct debit payment and the funds are then returned back into their bank account.
Are receipts mandatory for rental payments?
Whether or not a rental payment receipt is mandatory will depend on each state and their regulations. However, generally, a receipt should always be provided for payments made in cash or by cheque.
With Biz Core’s advanced payment system, we take the worry out of providing receipts for online payments. Receipts for direct debit payments, and credit and card payments are automated so you can provide renters with the information they need without having to lift a finger.
Contact Biz Core today for more information and a free live demo!