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. In return, they expect their rent paid on time, every time.
But, if you’re like most property managers and rely on tenants paying their rent via manual methods like cheque, direct deposit, BPAY, you’ve probably experienced rent arrears more times than you care to recall.
You’re not alone.
In fact, we surveyed more than 300 Australian landlords and found that one in three has fallen victim to rent arrears. It’s a stressful situation, particularly for those who rely on rental income to make monthly mortgage repayments. It’s no picnic for property managers, either. After all, nobody likes chasing tenants, or explaining to landlords that their rent will be late again.
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.
Direct debit empowers you to automatically collect rent from your tenants’ nominated bank accounts and credit cards at agreed intervals. Your tenants can relax about remembering to pay rent, you can wave goodbye to chasing arrears, and your landlords can feel confident about meeting their mortgage repayments. Wins all around.
What direct debit can do for your agency
Take control of rent payments
Traditionally, agencies have had to rely on tenants paying on time, and with the correct reference. But, as anyone in the PM business will know, life isn’t always that straightforward.
It could be, though. Direct debit puts you firmly in the driver’s seat. With their approval, you can deduct rent directly from your tenants’ accounts. That means you—and your landlords—always get paid on time.
Free yourself from admin
Managing cash, cheques, direct deposits and other manual rent payments is a huge administrative burden. And let’s face it; your time would be better spent nurturing client relationships and building your rent roll, anyway.
Direct debit allows you to set and forget rent payments, so you can always know how much rent you’re due and when. And, because there’s no need to worry about incorrect references, you can bulk receipt your rent payments with ease. No more hours of trying match payments between your bank account and your trust accounting system.
Outshine your competitors
While direct debit has been popular for software and subscription services for some time now, it’s still a rarity in the world of real estate. During our 2017 survey, only 20% of the 300 Australian tenants we spoke to paid their rent via direct debit.
Crucially, however, 45% of tenants and more than 70% of landlords, would happily choose direct debit for rent payments if given the option. So, if you’re looking for a way to differentiate your agency from the competition, it’s simple. Give the people what they want.
Console Pay: Simple and stress-free
Console Pay—Console Gateway’s automated rent payment capability—can help you take control of rent collection. Here’s why more and more Australian property managers are choosing Console Pay as their preferred payment method.
Seamless integration with Console Gateway
Console Pay is powered by Ezidebit, Australia’s leading automated payments company, and integrates seamlessly with Console Gateway. When you sign up with Console Pay, your rent payments are collated by Gateway and automatically receipted, so you don’t have to download any files externally, or worry about entering the correct reference numbers and amounts.
Better still, funds are cleared into your account in just two days, bringing an end to those awkward calls to landlords to explain why the rent you just disbursed has already been dishonoured. The time savings are enormous, too. What would have once meant hours of rent receipting can be completed in as little as five minutes.
Easy set-up and ongoing support
Setting up and using Console Pay is quick and easy. But, if you have any problems, our specialist support team will be on-hand at every stage of the process. You’ll also have access to free templates and marketing materials to get tenants on board, and helpful videos on using the software.
Once you’ve signed up, collecting rent is just as simple. You can send tenants a free SMS reminder to make sure they’ve got enough money in their accounts, and rent will only be transferred into your trust account once the funds have been cleared.
Perfect for businesses of any size
Console Pay is designed for agencies of all sizes. There’s no joining fee: just a charge of $1.50 per transaction for direct debit or 1.5% for direct credit. And you can choose to pass the cost onto the landlord or tenant if you prefer. Sounds pretty good, right?