There has been a significant revolution in rental payment methods even before the coronavirus outbreak. Multiple secure and immediate forms of payment have evolved to make your ubiquitous check for payments. It was once unacceptable, but now we have seen people be more flexible towards credit card payments and online portal development for rental.
With time property managers indulge in new business activities to keep the residents happy. It is true that by practicing social distancing, the adaptation of local payment methods through online portals has become more convenient for people living in apartments for rent in Moreno Valley, CA. Online payment transactions rather than paychecks or cash.
The Pros and Cons of Traditional Rent Payment Options
- Traditional apartments for rent in Moreno Valley, CA continue to be well-liked, especially among some populations.
- According to the most recent data from a 2014 Federal Reserve Bank of Boston survey, 22% of American tenants paid with cash, 43% with a check, and 16% with a money order.
- The FDIC discovered that 25% of Americans either don’t have a bank account or utilize financial services other than their bank account to make payments in a 2017 poll. And half of them claimed that the reason was that they lacked the funds to maintain a minimum balance.
- With low-income tenants, the preferred methods of payment are still cash or money order. In addition, several chains and big box stores offer walk-in payment systems (WIPS) for customers to use.
- Residents use WIPS to make cash payments at participating businesses. The retailer then gives the property manager a straight money transfer.
- Money orders and certified or cashier’s checks have historically been preferred by both residents and property managers for those residents who do have bank accounts.
- The bank that issues both cashier’s and certified checks guarantees them, so they won’t bounce. Additionally, money orders promise to pay. There can be no payment dispute as all of these ways are traceable.
- The ideal solution for your residents may be any of these payment methods. However, each of these has drawbacks for both tenants and property managers.
- Cash is difficult to trace at first while looking for apartments for rent in Moreno Valley, CA. Even with bank records and deposit slips, it’s simple to misplace cash payments, particularly if you receive the same cash amount from many tenants. Cash, after all, has no name or check number associated with it.
- Cashier’s checks may not be clear. Additionally, getting certified or cashier’s checks might be difficult and expensive for your residents (up to $10 per check). Like with WIPS, money orders include a little additional fee (up to $5 per order), and like with WIPS. Your inhabitants must physically visit a facility to obtain one.
Traditional Payments and COVID-19
Traditional payment methods for apartments for rent in Moreno Valley, CA need you to. Be physically present or send the money to either a store, bank, or e-mail. With constant virus spikes in recent years, people have preferred a more convenient approach toward payment.
It is not just the pandemic, but the coming generation prefers to deal with things while being at home rather than going out for every other task. Hence, COVID has made it easier for them to enjoy luxuries like online payment portals and credit card payments for renting apartments.
Electronic Payment Options
Following electronic payment options have eliminated the need for contact among individuals and property managers. However, there are some facts about these feminine methods that must be kept in mind.
Credit or Debit Card
In previous years there has been a 30% increase in the payment method through credit cards. It indicates that people now prefer to pay through online methods rather than walking to the mailbox.
Since credit cards are becoming more popular for paying rent, people now prefer to provide large benefits by using credit cards rather than other facilities. This means that credit cards are serving as a source of marketing for a lot of property managers.
Why transfers are also a convenient approach for many property managers; however, it is not an idea that is widely accepted. The main reason behind avoiding this is that in order to make any wire transfer transaction possible, you need to share the account with the bank routing, which is a bit risky.
A large portion of the rental market is based on millennials. This generation prefers using online transactions for most of their convenience. Furthermore, the GENZI is the generation that has never lived their life without Internet service. Hence, the use of online portals for payment on rental services and apartments is highly convenient for any property manager.
You can get whole host payment apps on your servers to collect rent money from tenants. However, we suggest that you get the payment platforms integrated with your property management service since it helps you to get rid of any payment blunders.
Even better, consider using an online portal to accept and charge rent. Rent payments are handled easily by online tools like Propertyware, which also offers a wide range of other services to tenants, owners, and property managers.
The PMC can even communicate with owners through their own portal, and you may use them to sign and save lease agreements for getting apartments for rent in Moreno Valley, CA. They handle other paperwork, keep track of service requests, and send messages to residents.
There will still be some communities of residents who pay their rent in more conventional ways. Online rent payments may eventually displace checks, cash, and money orders as the primary method of rent payment for tenants, though, if younger renters flood the market and the present pandemic continues to function as a catalyst for change.