{"id":17402,"date":"2022-06-03T14:35:49","date_gmt":"2022-06-03T21:35:49","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=17402"},"modified":"2022-06-13T09:21:58","modified_gmt":"2022-06-13T16:21:58","slug":"5-ways-to-get-your-renters-to-pay-rent-on-time","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/5-ways-to-get-your-renters-to-pay-rent-on-time\/","title":{"rendered":"5 Ways to Get Your Renters to Pay Rent On Time"},"content":{"rendered":"\n
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As a busy landlord, you know that when your renters pay rent on time, it saves you time and money. Although late fees and notices are helpful to remind tenants to pay on time, let’s take a look at five suggestions to encourage them before the rent is due. <\/p>\n\n\n\n

What are some ways to help your renters pay rent on time? <\/h2>\n\n\n\n
  1. Make credit reporting<\/strong> available for on-time payments to boost credit score<\/em>.<\/li>
  2. Make security deposit insurance<\/strong> available so tenants don\u2019t have to save up for a deposit – leaving more funds available<\/em> <\/strong>to make timely rent payments.<\/li>
  3. Make paying rent convenient<\/em> by offering rent payment alternatives<\/strong> such as online payments from a tenant portal and\/or cash payment networks.<\/li>
  4. Make paying rent on time something memorable<\/em> with incentives<\/strong>.<\/li>
  5. Make paying on time rewarding<\/em> by offering discounts<\/strong>. <\/li><\/ol>\n\n\n\n

    Let\u2019s dive deeper into why these tips help your tenants pay on time and how you and your renters benefit.<\/p>\n\n\n\n

    How does credit reporting encourage on time rent payments?<\/h2>\n\n\n\n

    If someone needs to establish credit or wants to increase their score, reporting on time rent payments can help and is a win-win for both landlords and renters. <\/p>\n\n\n\n

    – Tenants on-time rent payments can raise their credit score and help them achieve their credit goals. <\/p>\n\n\n\n

    – Landlords become heroes by offering this great service but also get the benefit of receiving timely rents and save countless hours that would otherwise be spent tracking down and documenting rent collection efforts.<\/p>\n\n\n\n

    How does rent reporting work? <\/em><\/strong><\/p>\n\n\n\n

    When a tenant’s timely rent payments get reported to the credit bureaus, it can boost their credit score. Whether a renter is establishing credit for the first time or needing to increase their credit, using a credit reporting service such as RentReporters can make a big impact.<\/p>\n\n\n\n

    For example, a tenant can sign up with RentReporters <\/a>through a property management software<\/a> like Rentec Direct. Up to 2 years of the tenants rent payment history gets sent over and the continued reporting of ongoing monthly rents payments can help strengthen a renter’s credit score by an average of 40 points<\/a>.<\/p>\n\n\n\n

    Can offering security deposit insurance free up tenant funds for rent payments?<\/h2>\n\n\n\n

    Absolutely!<\/em> Offering a tenant the option to acquire security deposit insurance relieves them of the burden to come up with those up front move in costs.<\/p>\n\n\n\n

    Not only does this give renters more freedom of choice in when and where to move, but it also frees up those reserves so they aren\u2019t burdened when it comes time to pay rent. Again, the best landlord software will have built-in tools to let you offer security deposit insurance options to your renters. <\/p>\n\n\n\n

    Bottom line, when you offer security deposit insurance, renters have more available funds since they didn\u2019t have to pay such a huge move-in security deposit.<\/p>\n\n\n\n

    Can rent payment alternatives inspires timely rent payments?<\/h2>\n\n\n\n

    Yes, online rent payment options encourage paying rent on time because of the convenience it offers your tenants.<\/p>\n\n\n\n

    As the pandemic began, more businesses and industries felt the impact of the new paradigm. During that season, Rentec Direct collected rent payment data to track the impact for landlords and several trends in rent payment behavior emerged, namely, tenants with online rent payment options were considerably more likely to pay rent on time. <\/p>\n\n\n\n

    Gone are the days of going to the post office to mail a check as tenants are leaning into online options as evidenced in that report.<\/p>\n\n\n\n

    The full whitepaper report can be viewed, downloaded, and printed from here: 2020 Rental Trends | The Impact of COVID-19 on Rent Payments<\/strong><\/a><\/p><\/blockquote>\n\n\n\n

    What alternative payment methods can you offer your tenants?<\/h2>\n\n\n\n

    The two best alternative rent payment options you can offer your tenants are:<\/p>\n\n\n\n

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    Online rent payments<\/a> <\/strong>such as ACH bank draft, credit card, and debit card transactions; and<\/p>\n\n\n\n

    Cash payment alternatives<\/a><\/strong> that replace receiving rent payments in cash, check, or money orders.<\/p>\n<\/div>\n\n\n\n

    Consider leaning into your property management software options. Likely they have partnered with a merchant processor and cash payment network that makes receiving alternative rent payments easy.<\/p>\n\n\n\n

    You can learn more about online rent payment options here: 9 Best Online Rent Payment Systems<\/a><\/p><\/blockquote>\n\n\n\n

    You can learn move about cash payment options here: A Modern Rent Payment Option for Money Orders, Cash, and Checks<\/a><\/p><\/blockquote>\n\n\n\n

    Important Note<\/strong>: Not all options are the same. In fact, some pose some serious challenges and risks to both tenants and landlords. <\/em><\/p>\n\n\n\n

    You can learn more about those concerns here: Should Landlords Accept Rent Payments from Zelle, Venmo, and Cashapp?<\/a><\/p><\/blockquote>\n\n\n\n

    How can incentives make on time payments top of mind for renters?<\/h2>\n\n\n\n

    Incentives help your tenants remember to pay rent on time by making it a positive experience.<\/p>\n\n\n\n

    Your landlord software <\/a>can automate many of the tasks related to rent collection like sending out automatic notifications when rent is due and when it\u2019s late. Negative consequences like a late fee are traditionally the go-to to incentivize on time payments.<\/p>\n\n\n\n

    But\u2026<\/p>\n\n\n\n

    Having positive incentives might be a better alternative to relying solely on negative consequences.<\/p>\n\n\n\n

    What would incentives look like for on time rent payments?<\/strong><\/em><\/p>\n\n\n\n

    An incentive could be a gift or a drawing for a gift when a tenant makes consistent on time payments after a certain amount of time. What types of incentives could you offer?<\/p>\n\n\n\n