Technology is changing everything; it seems as though there is software, SaaS or an app providing a solution to every problem. Where technology excels is in taking ordinary, mundane tasks and handing them over to a computer for complete automation.
Rent collection is no different in this regard, the process of collecting rent is ordinarily a manual process which demands time in carrying out the extra admin work. Not everyone is a fan of automation, however if you’re one of those people, you will probably change your mind after seeing the benefits below.
Less Administration & More Time
One of the biggest advantages of using an automated rent collection system such as PAID & CO, is that it saves Letting Agents and Landlords a large chunk of time (time is money right?). If you would normally collect payments in the form of cash (unlikely nowadays), you would have to remind tenants to pay on time. You may even have to commute to the tenant’s residence in order to collect the cash. The admin timeline isn’t finished there! You still need to create a receipt and finally take that money to the bank and deposit it.
Accepting payments via cheque is no different, in fact it could be argued that collecting rent in the form of a cheque can be even slower. The reason for this is that you will have to wait for the cheque to clear before the money even drops into your bank account and there is no guarantee that the cheque will even clear! You may be left with a “bounced” cheque on your hands.
Then there are standing orders which are semi-automated in contrast to the previous two solutions but in comparison to Direct Debit you are limited in your ability to fully automate your rent collection process. With PAID & CO Direct Debit it is possible to change the rent amount without having your tenant manually make the change themselves, handing power over to you the letting agent.
With PAID & CO’s Direct Debit solution, you can enjoy all the benefits of a fully automated rent collection system, offering features such as automatic SMS text and email alerts to all parties involved (tenant, landlord and letting agent). This is not a feature of ordinary standing orders, but with the power of Direct Debit which allows the system to notify users of low funds, it is incredibly easy to decrease your number of late and non-payments.
Having A Digital Footprint
PAID & CO’s Direct Debit based service, gives you a full history of payments and non-payments in an easy to use, visually appealing, web-based dashboard. However, proof of payment isn’t just stored here, as the Direct Debit is setup with the tenant’s bank account details, there is a digital footprint, meaning that as a letting agent or landlord you are able to prove any payments or conversely non-payments going forward.
This highlights how an automated solution like PAID & CO wins over the traditional payments methods! As a letting agent or landlord you can relax with peace of mind in the knowledge that you have proof for any transaction.
To read a breakdown of all of the different rent collection payment methods, please read our post about this very subject.
No Reconciliation Needed
When collecting rent via cash, cheques or standing order, you will often be presented with the challenge of reconciling rent payment records against bank statements to make sure the numbers add up correctly.
With an automated rent collection solution such as PAID & CO, this is completely unnecessary because all of this is taken care of for you within the dashboard. You can quickly check paid vs unpaid records at a glance and see any outstanding payments or discrepancies within your tenant’s payment record.
This is yet another time consuming task, which, when handed over to the power of technology and automation, can be removed from your daily schedule, freeing you and your staff up and allow for far more valuable exercises such as taking on new instructions.
Cut Down on Late Payments
When tenants manually pay their rent, this leaves it in their hands as to when they actually make the payment. With PAID & CO (which uses Direct Debit) rent is collected from the tenant’s bank account automatically. If there aren’t enough funds to cover the rent payment then the tenants, the landlord and letting agent is sent late payment reminders.
Going a step further, PAID & CO’s service encourages tenants to pay their rent on time because their payment record is shared with Credit Referencing Agencies. This has a twofold benefit, it encourages the tenant to pay on time (this may damage their credit rating if they do not) and at the same time, it allows the tenant to build up a good credit rating as a result of paying their rent on time.
We think the biggest beneficial factor of automating your rent collection through a Direct Debit powered service like PAID & CO, is that you will save an incredible amount of time. When added up over weeks, months and eventually years the time saved and consequently spent on money generating tasks, will not only save your company money but will actually generate more!