What is rent payment software and how does it work?
As handy as Excel spreadsheets are for collecting and collating rent payments, there is an easier way, one that doesn’t entail dealing with endless cells of data and actually aims to make life easier for both landlords and tenants.
Rent payment software is a dedicated solution designed to efficiently manage rent payments. It’s used by landlords with small portfolios, as well as those with vast property empires.
So, what is rent payment software, how does it work, what benefits can it provide, and why should you consider it for your business?
What is a rent payment software program?
Rent payment software is a complete rent payment solution that automates many of the admin tasks that demand a landlord’s valuable time. It’s not just about saving time, though, as this software also provides analytics and marketing benefits while giving tenants more choice and flexibility, including simplified online rent payments using a variety of payment methods.
How does rent payment software work?
Rent payment solutions like MRI RentPayment use secure online platforms that encourage residents to pay their way, whether that means choosing the payment method they prefer or splitting up the rent so that everyone pays their share. It promotes full, on-time payments, but it also removes a lot of legwork for the landlord. With rent payment software collecting all of the money, landlords don’t need to worry about sending reminders or cashing endless paper checks.
The software reduces the landlord’s burden during rent week—a stressful and often chaotic period when they find themselves dealing with numerous reminders, requests, and payments.
What are the benefits of using rent payment software?
Rent payment software offers benefits to both landlords and tenants by streamlining the rent collection process and enhancing convenience and security.
Here’s a closer look at some of these benefits:
Efficiency and convenience in rental payment processing
The more files you keep and the more steps you require, the more likely you are to make a mistake. If you’re collecting rent payments from a growing number of tenants while also trying to juggle maintenance requests, mortgage applications, development projections, and everything else that comes with building a fledgling property empire, those important rent payments can fall by the wayside.
By bringing everything together, automating key processes, and managing payments via a secure online platform, rent payment software injects some much-needed efficiency into the process and greatly minimizes the risk of mistakes and oversights.
Automation of rent collection
A few decades ago, the average landlord spent most of their time chasing rent. The loud knock from the insistent landlord on the first of the month was a common trope in films and TV shows. It wasn’t always a welcome visit for the tenant, and it took a lot of time out of the landlord’s schedule.
Thanks to rent payment software, this process is entirely automated. The tenant can pay quickly and securely using their preferred payment method while the landlord can collect their profits with no obstacles.
Easy tracking of rent payments
The extensive analytics used on programs like MRI RentPayment make it easy to track all incoming rent payments, giving landlords direct insights into the punctuality of their tenants. They can see who’s paying on time, who’s late, who’s splitting payments, and who is missing rent day completely.
These tools are also very useful for tracking additional fees, and ensuring the amount owed is always requested and paid in full.
The best rent collection programs implement advanced security systems to protect tenants and ensure that all data privacy laws are met. Data security is a hot topic in this increasingly cyber-centric world, and it’s something we take very seriously at MRI. We use the latest data encryption technology to protect all users of our software and we ensure that industry standards are met at all times.
8 out of 10 renters prefer to pay using a debit/credit card or ACH, which is why these methods are typically integrated into the best rent payment software solutions. It’s not all about the landlord—if you can make life easier for the tenant, they will be less likely to miss a payment. Good rent payment software is accessible and easy to use, which helps to keep adoption rates high.
Tenancy situations aren’t always straightforward, and a good landlord should try to accommodate the unique needs of their tenants. For instance, if the landlord rents a building to a group of students, they may wish to pay individually, ensuring that everyone pays a fair and equal share of the rent. Traditionally, this would create an additional headache for the landlord, but with rent payment software, they don’t need to get involved.
Flexible payment solutions mean that the tenants can split up the rent. Not only does this provide a simple way for large groups (and even couples splitting the bill) to pay, but flexible payments can also be used by single tenants who want to break a large monthly bill into multiple smaller ones.
Streamline your rent payment using MRI RentPayment
MRI RentPayment is a rent payment software solution used by landlords with a handful of properties and property development firms with huge portfolios. It is backed by a dedicated team with over 20 years of multifamily experience and a complete commitment to client success.
- Multiple payment options for tenants (ACH, credit cards, debit cards, online banking apps)
- Streamlined software that automates time-consuming admin tasks
- Reporting and analytics tools
- Flexible rent payment options (provided by Best Egg, a RentPayment partner)
- Marketing tools aimed at increasing adoption
- Available for property portfolios of all sizes
Contact us today to learn more about MRI RentPayment and discover how it can help you manage your rental income.
FAQs about rent payment software
How can landlords collect rent?
Landlords are advised not to accept payments from e-wallets/payment apps (see below) and will traditionally receive payment using one of the following methods:
- Direct deposit
- Check or money order
- Bank deposit slip
Cash can be given directly to the landlord or left in a designated drop-off area. Checks can be posted, handed over in person, or placed in a drop-off location.
Of course, they can also just use rent collection software and let it handle payment collection automatically.
Can I use Cash App to collect rent?
Although payment apps like Cash App can seem like a quick, easy, and cheap way to collect rent payments, many experts advise against their use. In January 2022, the IRS changed its rules regarding payments received through these apps, potentially complicating matters for landlords who receive money through an app and then spend it on personal expenses or hold it in their account.
What’s more, if the account regularly receives income, it may be upgraded from a personal account to a business one, which carries a processing fee of 2.75% on every incoming transaction. It’s also harder to make sure the tenant pays the rent in full and to block partial payments when they do not.
Do I need to have a large property portfolio to use rent payment software?
No. The software will certainly provide more benefits to landlords with large portfolios, but landlords of all sizes can benefit from secure rent payment automation. If you receive rent payments every month and want to make life easier for you and your tenants, rent payment software can help.
Severn Management Company Uses RentPayment to Improve Payments Experience
Learn about how Severn Management Company, a real estate development company based in Annapolis, M.D., uses RentPayment to reduce the time and workload of processing payments and improving the payments experience for residents.