Property Managers Save Big with Echecks

Accepting payments online is a huge money saver for property managers. 

An internet ACH electronic check payment is very inexpensive.  Particularly when compared to processing a paper check.

Consider this.  Even if a company scans a paper check for electronic deposit via remote deposit capture, manual labor is still involved in processing the check.  

Estimates are that each paper check that needs manual intervention costs $2.00 to process.

Should You Charge a Convenience Fee?

Some property management companies charge tenants a “convenience fee” of several dollars for online payments.  This is not a good strategy.

Sure, a small percentage of tenants will pay the additional “convenience fee.”  But charging a fee is not a good long term plan if you want to encourage the maximum number of tenants to pay online. 

Let’s face it.  Most people feel resentful when they have to pay a fee to pay a bill.

Conclusion

In order to drive more tenants to pay online, smart property management companies offer online payments at no cost to the tenant. 

With the cost of ACH being so amazingly inexpensive, any property management company can easily absorb the small fee.  And realize big savings.

Are you a property manager that wants to accept checks online?

For more information, contact info@nationalach.com

ACH Processing for Property Management

Recurring Payments for Property Management

If you are a property management company that is not offering recurring ACH processing, you are leaving money on the table.

Surprisingly, many property managers are still doing business the old-fashioned way by accepting paper checks as payments.  And they are still taking paper checks to the bank.  What a waste of time and effort.

It’s easy to make an ACH authorization form part of the rental paperwork.  Along with the lease, the tenant signs the authorization form which gives permission to electronically debit a checking or savings account each month.

Most tenants are familiar with direct debit and expect to be offered ACH payments as a matter of course.  Tenants like not having to make out a check each month.  And ACH eliminates the risk of incurring a late fee for overdue rent.

Benefits of ACH Payments

Property mangers receive money quicker with ACH payments. Electronic payments are cleared faster through the Federal Reserve than paper items. 

Returned ACH transactions, such as those for non-sufficient funds (NSF) can be re-submitted automatically.   This eliminates the time-and effort of  trying to collect on paper checks or calling  renters’ banks every day to determine if there is enough to cover the check.

Automated reporting of electronic payments makes it easy to download data directly into accounting programs.  Reconciliation of accounts fast, easy, and accurate.

Conclusion

Fees for processing payments are less than a single first-class stamp.  So inexpensive that no property manager can afford not to collecting all rents via ACH payments.

Are you a property manager that wants to automate payments with ACH processing?

Contact info@nationalach.com today