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Benefits of Online Rent Payment Help Landlords and Tenants

Landlord Tenant Benefits — The benefits of online rent payment can reach landlords and tenants.

One of the biggest challenges with rental property is paying and collecting rent. Collecting rent from tenants is time consuming. If you receive payment by check or cash, you have to then find time to deposit it. This process becomes more laborious the as the number of properties you manage grows. ClearNow’s online rent payment service has tools that can make the rent process more manageable. Here are some ways where ClearNow’s benefits of online rent payment reach both landlord and tenant.

Rent Payment on Autopilot

ClearNow makes it easier for tenants to pay rent online. Once set up, tenants just need to have sufficient funds in their bank account on their debit day. That’s it. They do not have to deal with checks, mail, or any interaction to pay rent with ClearNow. Similarly, landlords using ClearNow simply wait to receive rent payment directly into their bank account. ClearNow eliminates the time and expense related to picking up rent from tenants and depositing checks at the bank.

Build Credit History

The benefits of online rent payment extend to helping tenants build credit history. With ClearNow, tenants can build credit history by having their ClearNow rent payment data furnished to Experian RentBureau. The drive to build credit history encourages tenants to pay rent on time which in turn, benefit landlords. Landlords want to get paid on time.

The benefits of online rent payment with ClearNow are evident for landlords and tenants. While landlords get paid on time, tenants benefit in the process of building credit history while making the rent payment process easy.

Methods to Pay Rent Online

Pay rent online credit card — Two online rent payment methods for tenants include credit card and ACH.

Finding a way to complete chores in the fastest and most painful manner is a win. When it comes to the chore of paying rent, tenants who can pay rent online achieve speed and ease. The two most popular methods of online rent payment are credit card and ACH.

Pay Rent Online by Credit Card

Paying for goods and services by credit card is very popular in certain markets, such as dining and consumer goods. In these markets, credit card payment in person or online is highly accessible. In the real estate rental market, however, credit cards are not popular. Many landlords do not accept credit card payments mainly due to the high cost that credit card companies charge. Fees are typically based on a percentage (usually 2% to 3%) of the amount charged making it quite expensive. For example, a $500 rent payment can cost the landlord $10 to $15 in fees. Even though the fees are high, there are services that enable tenants to pay rent online by credit card. Tenants who can pay rent by credit card will benefit from rewards they can earn with their card company as well as cover them if they are short on cash when rent is due.

Pay Rent Online by ACH

The Automated Clearing House (ACH) Network enables the electronic transfer of funds between bank accounts. One of the most popular uses of an ACH payment is with direct deposit for payroll. Most employers will pay employees as a direct deposit to the employees’ bank accounts using the ACH Network. Rent payment by ACH is much more popular than credit cards partly due to the reasonable cost. There are many online rent payment services that enable tenants to pay rent online by ACH. These services will differ on factors such as cost and features. For example, ClearNow does not charge tenants to pay rent online (landlords pay the fee) and will furnish rent payment data to the Experian credit bureau for those tenants wanting to build a credit history.

Tenants who want to make their lives easier should look into paying rent online. There are online rent payment services that offer credit card and ACH as payment options.

Getting Tenants to Pay Rent Online

Landlords love getting paid rent automatically. Online rent payment is a no brainer; it saves you time and encourages tenants to pay rent on time. But, what can landlords do to get tenants to pay rent online?

In ClearNow’s experience, tenants are most open to signing up for online rent payment when they sign or renew a lease.

In some cases, you will need to convince your tenants to sign up for online rent payment. Fortunately, tenants who pay rent online can look forward to many benefits:

Paying Rent Online Is Secure

We all tend to be a little hesitant to making change. For tenants who are used to paying rent via check, an automatic debit to their bank account can be scary.

Thankfully, online rent payment services tend to be even more secure than paying by check. With ClearNow, for example, the landlord never sees your bank account number (in the check world, this number is on every check).

Moreover, with a service like ClearNow, a tenant can contact an independent third party and stop payments if there is ever a dispute.

Online Rent Payment is Convenient

We’ve all learned from online shopping with Amazon that saving time is super nice. For tenants, never having to write or drop off a check saves time and effort!

Even compared to something like PayPal, with ClearNow online rent payment, tenants receive an email notice each month eight days ahead of time that rent will be debited – there is nothing to log into and schedule.

Pay Rent Online To Build Credit History

Most tenants do not realize that they can build credit history by paying rent online! ClearNow has offered this feature since 2011 -at no charge to the tenant. A good credit history is so important in the modern world. For example, it can lead to lower loan costs and a healthier employment background profile.

Tenants Benefit from Paying Rent Online

Next time you are preparing a new lease or lease extension, let your tenants know that you would like them to pay rent online. With a service like ClearNow, tenants can enjoy the safety, convenience, and credit building of online rent payment.