Property Managers Boost Efficiency With Online, Real-Time Payments

Despite the importance of paying rent on time and ensuring that it has actually been paid, most tenants are still paying with paper checks.

That’s happening in related categories, too, as a significant 34% of business-to-business (B2B) payments in the commercial real estate space are still made with paper checks.

Why? For one thing, people are used to doing it that way. Another hurdle is presented by the fees that are charged to send and accept automated clearing house (ACH) payments. At the same time, the pandemic has helped accelerate the move to electronic payments, opening new avenues.

“We just need to make it easier for them,” Sara Leon, director of product management at CheckAlt, told PYMNTS. “I don’t think the banks have done a very good job of allowing businesses to initiate online. Once that happens, they’ll convert faster.”

Delivering Benefits to Tenants and Property Managers

Both tenants and property management companies can both benefit from online, real-time payments. For instance, tenants want to pay online because it’s quicker, easier, avoids late fees and eliminates the need for them to go into the office.

“You’ll have end users that will be able to use real-time payments to eliminate late fees and be able to wait until the last minute, hold their money in their bank or wait for their next paycheck to be able to send their payments,” Leon said.

Property management companies would also benefit from online, real-time payments, as it would cut overhead, speed the receipt of funds and ensure the certainty of funds. With quicker settlement, they’d be able to pay their vendors in a more expeditious way.

“You could allow your tenants to set up recurring payments and set it and forget it,” Leon said. “It just comes in and reduces the time to settle.”

Providing a Secure Payment Method

CheckAlt offers a solution that allows tenants to go to its online platform, validate their account and unit numbers, and make an ACH or card payment.

Like most web platforms, it makes sure that the account is valid, so property management companies have fewer returned items due to closed accounts. Payment information is masked, and card payments are Payment Card Industry (PCI) compliant.

“It’s an easy, secure way,” Leon said. “There’s no check lost in the mail, identity theft, etc.”

The pandemic accelerated the adoption of online digital payments because there was no one in the property manager’s office to accept the check. Those who needed to pay their bills wanted an online way to do it so they wouldn’t have to leave home.

“So, absolutely, the pandemic has really boosted digital payments, and I don’t see them going back,” Leon said. “Most of the country’s open but people are now used to paying online and enjoying it.”