As a Property Manager, landlords entrust you with one of their most valuable assets – a property worth hundreds of thousands, if not millions of dollars. A vital part of your role is ensuring landlords receive their rent – on time, every time.
But, if you’re like most Property Managers relying on tenants paying their rent via cheque, direct deposit, BPAY – or other manual payment methods – you’ve probably experienced rent arrears more times than you care to recall.
In fact, last year we surveyed more than 300 Australian landlords and found one in three has fallen victim to rent arrears. It’s a stressful situation for landlords, many of whom rely on rental income to make their monthly mortgage repayments. It’s also a hassle for you as a Property Manager as you’re responsible for chasing the late payments. Not to mention the damage rent arrears can do to your landlord relationships and reputation.
But it’s not all bad news. There’s a simple, low cost and effective way to ensure tenants pay rent on time, every time.
We’re talking about direct debit.
Introducing direct debit into your business will enable you to automate rent collection from a tenant’s nominated bank account or credit card at agreed intervals. Tenants will enjoy no longer having to remember to pay their rent. And landlords will feel more confident they can meet their mortgage repayments, with consistent rental income at the agreed timings.
THE BENEFITS OF DIRECT DEBIT RENT PAYMENT FOR PROPERTY MANAGERS
Gain control of rent payment
Traditional rent payment methods rely on tenants paying their rent on time, with the correct reference number. But with our increasingly busy lives and countless bills to keep track of, it’s no surprise tenants sometimes forget to pay their rent on time.
The good news is; direct debit puts you firmly in the driver’s seat. With the tenant’s approval, you gain control of when rent gets deducted from a tenant’s account, ensuring you – and landlords – get paid on time, every time.
No more time wasted on admin
Managing cash, cheques, direct deposit and other manual rent payments is a huge administrative burden. Let’s face it; your time would be better spent nurturing client relationships and building your rent roll than chasing rent arrears and reconciling payments manually.
Direct debit allows you to set up and then forget about rent payments. You’ll always know how much has and hasn’t been paid without checking your bank statement. And because the references always match, bulk receipting can be done easily. This will save you the time and hassle of matching up all those payments from your bank account to your trust accounting system and then creating receipts.
Outshine your competitors
While direct debit payments have been popular for software and subscription services, gyms, childcare and other industries for some time – only 20% of the 300 Australian tenants we surveyed pay their rent via direct debit.
This is surprising, as we found 45% of tenants, and more than 70% of landlords, would choose direct debit for rent payments if given a choice. With this in mind, it’s not hard to see how offering direct debit is an effective way to outshine your competition.
CONSOLE PAY: STRESS FREE RENT PAYMENT
Console Pay – Console Gateway’s automated rent payment capability – will help you stay in control of rent collection. Here’s why more and more Australian Property Managers are choosing Console Pay as their preferred rent payment method.
Seamless integration with Console Gateway
Console Pay – powered by Ezidebit, Australia’s leading automated payments company – integrates seamlessly with Console Gateway. When you sign up with Console Pay, your rent payments will be collated by Gateway and will be automatically receipted, so there’s no need for you to download any files externally; it can be all managed in Gateway. This means no more wrong reference numbers or entering rent incorrectly. Better still, funds are cleared – reducing dishonour fees and those embarrassing landlord phone calls when you have already disbursed the rent only to find it has later dishonoured. Your receipting time is reduced to as little as five minutes with all payments auto-receipted for you.
Easy set-up and ongoing support
Setting up and using Console Pay is quick and easy. Our experienced Concierge team can help you at every stage of the process. Plus, you’ll have access to free templates and marketing materials to convert tenants to direct debit, and helpful videos on using the software.
Once you’ve signed up, collecting rent is easy, too. As a bonus, tenants can choose to receive a free SMS reminder before the money is debited, so they remember to have the money in their account. And rent will only be transferred to your trust account when the funds have been cleared (usually within 2 days). This minimises dishonour fees and those embarrassing phone calls to landlords if rent has already been dispersed.
Perfect for businesses of any size
Console Pay is designed for agencies and Property Managers of all sizes. There’s no joining fee, only a small fee of $1.50 per transaction for a direct debit or 1.5% for direct credit. And you can choose to pass the cost onto the landlord or tenant if you prefer.