Why 2020 is the Year for Online Rent Payments

Let’s face it. It’s 2020 and choosing to not offer online rent payments to your residents is no longer an option. Now that you’re looking to collect rent online, the question is which payment service should you choose? Here are three key factors to lead you to stress-free rent collections.

Let’s face it. It’s 2020 and choosing to not offer online rent payments to your residents is no longer an option. Now that you’re looking to collect rent online, the question is which payment service should you choose? Here are three key factors to lead you to stress-free rent collections.

Woman using phone to pay

1. Transaction Fees

When it comes to payment processing, you’re going to run into fees, fees, fees… specifically, transaction fees. While these fees are paid by the resident (with some options for the property to assume that cost), you’ll want to be mindful of these as they can deter your residents from using your new online solution. Transaction fees fall into 2 categories:

  • ACH (bank transfer/electronic check)

ACH payments allow your renters to transfer their rental payments directly from their bank. This fee is typically lower than credit card fees, and if you’re using CICTotal as your property management software,  ACH payments are $0. For the most part, you’ll see that most ACH fees cap out at a maximum of $5.00.

  • Credit Cards

Credit card payments are typically higher than ACH payments, and for a good reason. Unlike ACH where the rent payment funds exist and are transferred, paying rent with a credit card essentially allows the resident to borrow the funds. While you’ll want to encourage ACH payments from your renters, offering credit card payments is also a good option for residents in a pinch (or looking to earn points). When looking at credit card payment options, you’ll want to make sure the online service offers a wide range of credit card providers.

2. Pricing

Now let’s talk about pricing – because offering online rent payments isn’t always free. Pricing for services varies greatly. If you’re getting online rent payments through a property management software, this could be incorporated into the total software price or be an additional cost. For services outside of a property management software, this can range from a small fee to completely free.

pointing to tablet to pay

3. The Full Package

Okay, so you’ve found a few options to help you process rent payments, but is that it? Aside from handling ACH and credit card payments, many of these services offer a lot more than simply collecting rent online. Of course, with a property management software like CICTotal you can get everything from marketing and maintenance management to resident screening and accounting. You get the whole management package. Outside of property management software, independent online rent collection services like .

In this day and age, it’s important to give your residents as many opportunities as you can for them to pay their rent. And, with more and more people staying indoors, this is the perfect opportunity to introduce online rent payments. Not only does this help out your residents, but it can save you and your leasing team the time it would usually take managing physical rent checks.

Woman using phone to pay

1. Transaction Fees

When it comes to payment processing, you’re going to run into fees, fees, fees… specifically, transaction fees. While these fees are paid by the resident (with some options for the property to assume that cost), you’ll want to be mindful of these as they can deter your residents from using your new online solution. Transaction fees fall into 2 categories:

  • ACH (bank transfer/electronic check)

ACH payments allow your renters to transfer their rental payments directly from their bank. This fee is typically lower than credit card fees, and if you’re using CICTotal as your property management software,  ACH payments are $0. For the most part, you’ll see that most ACH fees cap out at a maximum of $5.00.

  • Credit Cards

Credit card payments are typically higher than ACH payments, and for a good reason. Unlike ACH where the rent payment funds exist and are transferred, paying rent with a credit card essentially allows the resident to borrow the funds. While you’ll want to encourage ACH payments from your renters, offering credit card payments is also a good option for residents in a pinch (or looking to earn points). When looking at credit card payment options, you’ll want to make sure the online service offers a wide range of credit card providers.

pointing to tablet to pay

2. Pricing

Now let’s talk about pricing – because offering online rent payments isn’t always free. Pricing for services varies greatly. If you’re getting online rent payments through a property management software, this could be incorporated into the total software price or be an additional cost. For services outside of a property management software, this can range from a small fee to completely free.

3. The Full Package

Okay, so you’ve found a few options to help you process rent payments, but is that it? Aside from handling ACH and credit card payments, many of these services offer a lot more than simply collecting rent online. Of course, with a property management software like CICTotal you can get everything from marketing and maintenance management to resident screening and accounting. You get the whole management package. Outside of property management software, independent online rent collection services like .

In this day and age, it’s important to give your residents as many opportunities as you can for them to pay their rent. And, with more and more people staying indoors, this is the perfect opportunity to introduce online rent payments. Not only does this help out your residents, but it can save you and your leasing team the time it would usually take managing physical rent checks.

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Becky Bower is the Content Strategist here at the CIC Blog. She holds a degree in English, with a focus in creative writing, from CSU Channel Islands. Her biggest weakness is cake and favorite superhero is Batman.

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