Tag: online rent payment

Mobile Deposit and Rent Checks

One of the satisfying conveniences of the smartphone revolution has been the introduction of “mobile deposit” (using an app to take a picture of a check and deposit it). For landlords and property managers, mobile deposit of rent checks is a big improvement over driving to a bank branch or ATM. But, is the mobile deposit of rent checks the best way for a landlord to receive rent payments? Often there are significant drawbacks with mobile deposit that are overlooked.

The downsides of the mobile deposit of rent checks:

  1. Mobile deposit is still based on receiving a paper check – typically by USPS mail – and this can mean delays and lost checks. The dirty little secret of bank online bill payment is that it is still based on sending checks to landlords and property managers. Only the largest bill payment recipients, like utility companies, get paid electronically. This means most landlords whose tenants use bank online bill payment are still receiving checks. And, mail can get lost or delayed.
  2. Mobile deposit of rent checks often have a hold period or delay. Different banks put different “holds” on access to funds that are mobile deposited. While the first $200 must be available the next day, sometimes the delay on larger amounts can be many business days.
  3. Mobile deposit of rent checks can still bounce. If the tenant does not have enough funds by the time you deposit the check, you will likely be charged an insufficient funds fee (NSF) (often between $27 to $35). Even if the tenant had sufficient funds when the check was created, due to other withdrawals, the tenant may have insufficient funds by the time you deposit a check.

A more advanced method of collecting rent from tenants is “online rent payment“. With online rent payment, there is no paper rent check – payments go directly from a tenant’s bank account to the landlord’s bank account. The beauty of online rent payment services is that there’s no checks in the mail to get delayed or lost. Even if the landlord is on an extended vacation (everyone’s wish!), the deposit will occur.

One of the oldest and most trusted online rent payment services is ClearNow. For a small monthly fee relative to the rent collected, landlords save time, collect rent faster (in 3 business days the funds are usable), and issues with lost or delayed mail are a distant memory. A landlord can enroll with ClearNow at www.ClearNow.com.

4 Ways That Using ClearNow Can Help Landlords and Tenants

Managing rental property is harder than many people realize when they first start leasing their properties. Besides the challenges that come with maintaining the property, collecting rent can become a real time sink. Collecting rent from tenants and depositing it into bank accounts becomes more laborious the more properties or units you manage. ClearNow has tools that can make these processes more manageable. Here are four ways that ClearNow can help landlords and tenants. 

Setup a Payment Portal for Collecting Rent Online

Getting rent payment from a tenant can be surprisingly problematic. When people pay by check, some checks will get lost in the mail, which slows down payment receipt. You have to wait for the tenant to send a new payment or travel to pick up the rent in person. ClearNow makes it easier for tenants to pay rent online. With ClearNow, you get the service you need without having to run your own secure website for financial transactions. ClearNow has provided online rent payment since 2000 while maintaining a perfect BBB rating. Our system works for any property, whether you have one rental unit or a hundred thousand.

Provide Customer Service

Using ClearNow for collecting rent also provides additional benefits. For example, landlords have access to tenant screening that will help them find good tenants and fill vacancies. Additionally, many online rent payment services do not have phone support. It’s good practice to offer some technical support for tenants who may not be comfortable with computers or the internet. With ClearNow, tenants can call with questions Monday through Friday 9 am to 5 pm ET. If your tenants are having trouble setting up their account or have other issues, we’re here to help.

Ensure Landlords Get Paid on Time

For many property owners, it’s essential they get their rent payments promptly. Landlords may rely on rent to pay expenses related to property management. When you use ClearNow, rent is always directly deposited three banking days after the debit day. Each ClearNow account debits on a specific day and credits to a specific bank account. ClearNow fees are based on your debit day and are only charged when you attempt to debit a tenant. This way, property owners who only need a single monthly deposit pay less than larger management companies that need debits more often.

Improve the Credit Score of Your Tenants

Getting tenants to switch to online payments is easy with the intrinsic benefits of using ClearNow. When using ClearNow to pay rent, tenants can build their credit history by paying their bills. Tenants can establish credit history by having ClearNow furnish data to Experian RentBureau. The rental data from Experian is updated every 24 hours, so every on-time payment helps your tenant. As Experian explains, “This quick turnaround and robust data impacts every point of decision making – from identifying higher-quality residents and improving bad-debt recovery to streamlining the collections process.”

As you can see, there are a lot of benefits to using ClearNow for online rent payment. If you want to spend less time collecting and processing rent, while providing excellent features to your tenant, start using ClearNow today.