Rental Property Trend: No More Paper Checks!
Rents are the lifeblood of the rental housing industry. Without rent,
you cannot pay your mortgage and bills. One of the keys to success is
collecting rent in an efficient and timely manner.
Unfortunately, collecting rent by paper check is easier said than done.
When rent is due, you wait and hope rent checks will arrive on time.
You are dependent on your tenants to remember to write checks and deliver
them to you. As the checks trickle in, you create deposit slips and
make trips to the bank. Later, you usually have to identify who has
not paid, contact them, and remind them to pay you. And unfortunately,
every once in a while, you deposit a check that bounces.
Fortunately new methods of collecting rent have emerged that make the
whole process faster and easier for you. One simple and inexpensive
method is 'direct rent deposits'.
Direct Rent Deposits
Direct rent deposits are automatic, electronic rent payments. Each month,
rent is automatically transferred from tenant bank accounts and directly
deposited to your property's checking account - an electronic process
that eliminates paper checks. Direct rent deposits occur through the
Automated Clearing House (ACH) payment network - the same bank payment
network used to transmit payroll for millions of employees through direct
Direct rent deposits require a one-time setup on the part of the tenant.
Because payments occur automatically, once setup, the tenant is relieved
of the chore of remembering to pay rent and the hassle of writing and
delivering a check.
There are significant time and money saving advantages of using direct
rent deposits over paper checks:
- A Paperless System - Eliminate paper checks and deposit slips and
thus the possibility of check fraud and misplaced checks! There are
no checks to write or misplace!
- No Mail Delays - Now, rent cannot be lost in the mail or delayed
because of the mail!
- No Trips to the Bank - Save time! Rents are directly deposited to
your property's checking account. If you are out of town, funds still
get deposited into your property's checking account!
- Faster NSF Notification - You will know within days if your tenant
had insufficient funds rather than within weeks or months with paper
Article Provided By:
ClearNow, Inc. of Durham, North Carolina is a pioneer in easy-to-administer
Web-based ACH solutions for the multifamily housing market. For more
information, contact ClearNow, Inc. at 866-882-5327 or visit their Website
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