| A lot of things have gone electronic over the | | | | miles as well as improve your credit score by |
| years as the internet has become more secure | | | | making payments on time. |
| and safe. More than 80% of car loans and | | | | Another benefit for tenants is the fact that it can |
| mortgages are paid electronically and a great deal | | | | help reduce simple errors. Everyone has had a |
| of people shop online using their credit card. | | | | payment slip their mind from time to time. By not |
| Surprisingly, most landlords continue to collect | | | | having to remember to pay because the rent is |
| tenant checks as less than 5% of rents are | | | | automatically withdrawn from your account, you |
| collected electronically. | | | | never run the risk of paying late. |
| As with most things in life, there are pros and | | | | The primary con to be aware of when using |
| cons to using automated rent collection as a | | | | automated rent collection instead of collecting a |
| landlord. First, it will help reduce late payments by | | | | tenant check is that the tenant may not have |
| as much as 75%. While it varies from one | | | | enough in their account. Sometimes people live |
| complex to the next, on average there is a | | | | check to check and when they receive their |
| 2%-3% delinquency on non-electronic payments. | | | | paycheck on the first, it takes a day to process |
| By placing tenants on automatic recurring | | | | into their account. As a result, they do not have |
| payments, it will also eliminate possible delays with | | | | enough money to afford rent by the first. |
| mail delivery. | | | | However, with the four or five day grace period |
| Another advantage for landlords is that it will | | | | they can get rent in. |
| lower administrative overhead by up to 10%. By | | | | Not only is this a negative for the landlord, but it |
| eliminating the need to collect and deposit checks | | | | can put the pressure on the tenant as well. If |
| to the bank, it will free up your schedule and | | | | they are late on rent month after month, this will |
| eliminate the waiting time to get the money. | | | | lower their credit score over time and can lead to |
| Believe it or not, this can actually reduce the need | | | | many more problems in the future. |
| for more personnel in regards to rent processing. | | | | Collecting tenant checks seems to be the |
| There are advantages for the tenant as well by | | | | consistent route most landlords take today, but |
| eliminating tenant checks. With the use of a credit | | | | going automatic certainly has its upsides. And with |
| card, the tenant can take advantage of credit | | | | terrific sites like and available to choose from, it |
| card rewards. It can translate into frequent flyer | | | | can help smooth over the process. |