The Effect of Automatic Rent Payments on Tenant Late Fees
An analysis of rent payment data reveals how renters can save money by paying rent online and using automatic payment options to avoid late fees.
Monthly rent accounts for a large portion of a renter’s income. With rental markets tightening in large cities and rural areas, renters need to be diligent in finding a good rental that meets their needs and fits within their budget. While tenants do not have definitive power to influence the market rate for rentals in their area, they do have the power to lower their monthly payments in other ways–namely through ensuring that no additional fees are assessed at the time that rent becomes due. According to the data, automatic payments may be the answer to lower out-of-pocket costs for renters.
Rentec Direct recently analyzed data based on one year of rental payment behaviors, representing data from 13,000 property managers and more than 100,000 renters. The outcomes of the study showed significant differences in timely rent payments based on the implementation of automatic payment technology (ACH).
- Paying rent online results in fewer late rent charges
- Renters who do not pay rent online are more likely to pay late rent fees
- Renters who set up monthly, automatic rent payments are less likely to pay late rent fees
- Renters who pay rent online are less likely to pay rent late