Back in July, RentPayment hosted a promotion for four property management companies designed to help increase the number of residents who use AutoPay. AutoPay is a recurring monthly debit from a resident’s checking account in the form of an eCheck, an electronic version of a paper check.  Any resident within these four property management companies who signed up for AutoPay by eCheck with RentPayment from July 1^st to August 5^th, 2011 was automatically entered to win a $200 MasterCard Gift Card!

The time has come to introduce our winner:

Lisa Cordeiro of Pocasset Village, a Bilotti Group Inc. Property!

Lisa learned about RentPayment and its AutoPay promotion from her property management team who took time out of their busy schedules to hand out flyers to all the residents!  She loves that “RentPayment’s AutoPay feature makes it easy to ensure [her] payment is on time every month.”  Lisa also shared with us that she recently moved into Pocasset Village and began using RentPayment right away! Her property managers introduced her to the benefits of paying rent electronically from the get go and she has really enjoyed not having to “worry about getting stamps or taking a chance the mail will be late.” 

Lisa is going on a vacation in November and says the “extra money will make [her trip] even more fun!” Congratulations Lisa, enjoy your trip and your $200 Master Card Gift Card and thank you for using RentPayment!

 Property managers, tell your residents about RentPayment’s availability at your property from the start, so they can begin enjoying the benefits of flexible payment options like Lisa! Also, if your property management company is interested in having RentPayment host a promotion to incentivize your residents to convert electronic payments, contact Marketing@RentPayment.com to further discuss the options available at your community!

The process of transitioning residents to electronic payments can sometimes be quite daunting and difficult for property managers.  RentPayment offers several great services to help market ePayment services to apartment communities and increase the usage of online payment options.  Among these great services are custom promotions designed and implemented for select Property Management Companies and Multi-Family Housing Communities.  For these management companies, we host promotions and incentivize residents to make the switch to electronic payments. 

We are currently hosting a promotion for four property management companies designed to help increase the number of residents who use AutoPay.  AutoPay is an automatic recurring monthly debit from your checking account in the form of an eCheck. An eCheck is an electronic version of a paper check used to process direct debit from residents’ bank accounts using bank routing and account numbers. With this service, residents never have to remember to write a rent check or deal with late fees ever again!   Any of the participating properties’ residents who sign up for RentPayment’s AutoPay by eCheck service between July 1^st and August 5^th, 2011 will be automatically entered to win a $200 MasterCard Gift Card!

For more information on the promotion click here.  If your property or property management company is interested in having RentPayment host a promotion to incentivize your residents to convert to electronic payments, contact Marketing@RentPayment.com to schedule a marketing consultation to further discuss the options available at your community!

Automatic bank bill pay systems may seem like a win-win solution for paying and collecting monthly rent at apartment communities.  For renters, it means no longer having to remember to write monthly checks and more on time payments.  While this may seem like an excellent benefit on the apartment’s end too, property managers should be aware of the associated troubles with these payment methods.  In certain cases bank-runs and other general bill pay programs do not benefit the apartment properties and may even be considered a hindrance.

While large financial institutions such as Bank of America, Wells Fargo, and Credit Unions can directly accept electronic payments from bill pay services, individual properties and property management companies will still receive physical paper checks via postal mail from the bank responsible for their renter’s payments.    In addition, these rent checks that come from bank bill pay are treated as exception items¹ and will generally not include any type of remittance slip²; making it difficult to determine which renter or unit the payment came from.  With electronic payments through the RentPayment platform, the renter is required to sign in to their account to make a payment, designating who the payment is coming from and for which unit.

Although bank auto bill pay eliminates renter forgetfulness, when payments are still in the form of paper checks, no efficiencies are created and all the negatives of paper checks are still present.   With bank bill pay paper checks are still being sent through the mail, relying on an outside party for on-time paper delivery.  Also, depending on the date in which a renter sets their automatic bill pay up for, the payment may still be late because the renter does not know to account for the mailing time or the processing delay which may occur.  Once received by the property manager, paper checks still require manual entry into the system and manual processing.  Overall, going through a third party bill pay service can ultimately create more hassle, without saving any time or money on the property’s end. 

While bank bill pay features are easier for renters to make bank account to paper check transactions, bank bill pays still offer no payment flexibility to use credit cards. In our current economic climate the freedom to leverage cash with credit is a necessity that only services like RentPayment can offer.

Both AutoPay and one-time electronic payments through RentPayment eliminate this tedious middle work completely.  Electronic payments are processed instantly and provide real-time reporting for the property manager.  Automated payments from a renter’s bank account can be set up easily with little oversight by enrolling in AutoPay by eCheck.  At many properties, residents also have the option to sign up for AutoPay using a credit or debit card, an advantage that bank bill pay does not provide.  With AutoPay, RentPayment automatically debits the renter’s account with the amount of their choosing on the day of their choosing, similar to a Bank Bill Pay service, but without the extra steps or inconveniences for the Property Manager. 

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¹ An exception item refers to a check that cannot be processed.  Causes can vary and include: the customer’s account that the check is from has been closed, a stop payment has been ordered on the check, or if the check lacks a signature.   

² A remittance slip is usually a tear off piece of paper from a traditional invoice that is sent back with paper check payments.  It is used to determine exactly which charges are being paid by the customer to a supplier.  It also distinguishes who the payment came from.  With a check from the bank on behalf of the renter, the renter will likely be unable to specify which unit and month they are paying the rent for.

Switching your Property Management Company from paper checks to electronic payments may seem like a daunting task, but keep in mind that success is certainly attainable.  This case study demonstrates how one of our clients realized the benefits of switching to electronic payments and set a plan in motion to make it happen.

A leading Property Management Company headquartered in the state of New York (hereafter referred to as “Company X”) manages nearly 50 properties with over 15,000 units.  They signed on with RentPayment in April 2009 so they could profit from the benefits of automated rent collection, including:  saving time and money, increased efficiency, and quicker receipt of funds.   When Company X launched with RentPayment, they set out to reach a specific and concrete goal:  75% adoption by residents.

In order to reach this goal, Company X developed a strategic marketing plan to educate employees and renters alike on RentPayment’s services.   Here is what they did:

APRIL 2009   |   Current Usage: 0%

Email from upper management (CFO) to all property managers and on-site managers introducing the new RentPayment service and rollout strategy.  Included in this email were PDF attachments of printable marketing materials to promote the new service.

MAY 2009   |   Current Usage: 10%

Update email from CFO, including a detailed rollout strategy for all Managers to follow including the following action items:

•             Include RentPayment information in move-in packet

•             Review eCheck program with all residents at move-in time

•             Promote benefits to new and existing residents as much as possible

•             Demo RentPayment to new residents in leasing office

•             Update lease agreements and change “rent to be mailed to…” to “rent to be paid
online by eCheck at www.RentPayment.com”

•             Updated all lease renewals forms with above verbiage about eChecks

JUNE 2009: Email from CFO to Property Managers outlining resident benefits, answering questions and following up on previous emails.

JUNE 2009: Follow-up from CFO stating that eChecks are now THE method of payment.

JULY 2009   |   Current Usage: 30%

Email from CFO with updates on current resident usage percentage and updated marketing materials in PDF.

AUGUST 2009: CFO sends update email.

SEPTEMBER 2009   |   Current Usage: 44%

Email from CFO with updates on resident usage and rollout strategy. Email includes an incentive bonus for leasing managers who achieve 50% and 65% resident usage.  Email also includes in-depth stats on the entire Company X portfolio with exact usage rates.  These rates ranged from 8% to 94%.

OCTOBER 2009   |   Current Usage: 57%

Email from CFO with updates and additional goals for resident usage. Email also included marketing collateral updates and a FAQ document for eChecks.

DECEMBER 2009   |   Current Usage: 60%

Updated usage percentages from CFO.

JANUARY 2010   |   Current Usage: 65%

Updated usage percentages from CFO.

FEBRUARY 2010   |   Current Usage: 66%

Email from CFO with updates on rollout strategy and tips for getting to 75% resident usage.

CFO of Company X stated that because the program was so well received by the residents, the transition from paper checks to eChecks was “seamless and easy.”  He also noted that the company observed modest cost savings throughout the program’s implementation.  They continue to actively convert residents to eChecks and add more properties from their portfolio to the RentPayment system.

Communities using RentPayment that want to increase adoption can learn a lot of from Company X, but there were a few key elements that truly helped them achieve success.  First, the company outlined a detailed plan which ensured that everyone understood the goals and how to achieve them.  Secondly, managers were committed and involved because the company continually sent progress updates, offered incentives and remained focused on the plan until the final goal was reached.

“Going green,” seems to be the current trend for consumers and business owners to claim they are following. Despite the obvious perks for adopting more nature-friendly practices, many have their doubts of whether or not the costs of applying these practices outweigh the benefits. However, by switching to a paperless ePayment system you can dramatically cut down your carbon footprint while also increasing efficiency and convenience for your company.

Javelin Strategy and Research reported that if every American household viewed and paid bills online, solid waste could be reduced in U.S. landfills by more than 800,000 tons a year and save an estimated 18.5 million trees a year. According to The Federal Reserve, over 170 million pounds of greenhouse gases are used on printing checks and bills each year.  Take a moment to think about how each document not only uses the paper it was printed on but also the gas consumed by the mail carriers to deliver it to you and your renters.

Reducing the use of paper provides benefits beyond saving the environment when using a full service ePayment solution to keep track of all your books and payment history.  Without the endless amounts of paper books and bills adding up, you can save thousands of pieces of paper as well as increase your property’s efficiency and accuracy.  Online payment systems increase accuracy by reducing the risk of human error involved with manual entry and recordkeeping.

Offering ePayment services also saves your business money and time. Electronic payment lowers costs for businesses who spend money on postage and check processing. For example, according to RentPayment.com, an eCheck costs approximately $1 to process whereas a paper-check can cost anywhere from $6 to $12 to process. In addition, the processing time for an eCheck is only a few days whereas a paper check can take up to 2 weeks to clear. The American Forest and Paper Association reports that every ton of paper costs an office roughly $1000 and can add 3.3 cubic yards of waste to a landfill.

Paperless billing is catching on as consumers become more aware of the conveniences and environmental benefits of electronic billing and payment. Surveys have shown that users not only like helping the environment, but they also like the timeliness and practicality of ePayment. Renters enjoy the assurance of securing an always on time rent payment every month without having to worry about physically dropping off a check.  Debit and credit cards are also processed by these same services. This is another benefit for the renter and helps ensure they can always make their rent payment. Renters also avoid being charged late fees while the property managers enjoy the guarantee of receiving rent every month with an automated withdrawal from bank accounts.

The Nature Conservancy sites that half of the world’s original forests are gone and each year 36 million more acres of deforestation are added to that list.  In one 24 hour period, one tree can provide oxygen for up to four people and discharge up to 100 gallons of water from the ground into the air. It’s critical that we preserve our trees to maintain our planet’s livelihood.

“Obviously, businesses and consumers won’t ever stop needing paper, but technology is helping make an impact to reduce unnecessary paper usage and waste. Electronic bill payment is a key element in that quest,” said Kevin Sander, director of corporate partnerships at the National Arbor Day Foundation

Finally, there is a way to save your property from superfluous costs and decrease unnecessary stress for you and your renters while also giving Mother Nature a much needed break too. It’s a win-win situation. Let’s all do our best to save the environment while saving our businesses money by switching to ePayment services today.

About Author:
Krista Norsworthy is a recent print journalism graduate from the Walter Cronkite School at Arizona State University and currently working as marketing intern at RentPayment.com in San Francisco.

To many, the thought of paying your rent or bills online may include hesitation and concerns about security. Since the Internet has become so pervasive and fast, it can be hard to know which online services to trust with your money.

However, RentPayment makes the transition to ePayments easy and comfortable.  With the quality services RentPayment offers, you can relax knowing your money is always transferred securely and on time.

Some may think paper checks and billing are still the safest way to go.  However, there are huge risks associated with paper payments compared to online payment. According to American Banker Magazine, more than 1.2 million fraudulent checks are written each day. That equals more than 13 per second! By utilizing e-Payments, the chance of lost, misplaced or stolen checks is no longer a concern.

The truth is, problems with electronic payments are extremely rare.  Due to accelerated processing times and instant return notification to the payee, the electronic check conversion process has proven effective in fewer returns, earlier fraud detection, and fewer errors.

Paying your rent and bills online can actually be safer than taking them to a bank or writing checks. According to NACHA (The Electronic Payments Association), almost 85 percent of identity theft occurs with offline transactions. In addition, RentPayment’s ePayment platform has received the highest level of security the federal government can award to a business processing ePayments, including PCI compliance and SAS 70 certifications.  Personal data remains safe and secure on a private network that is only accessible by RentPayment security-screened employees.  Furthermore, payer information is never released to third parties or banks.

With RentPayment, safety is guaranteed and convenience is promised. With our services, you’ll never forget to pay your bills again thanks to the email and text alert applications that remind you when money is due and/or withdrawn.  To add to the list of conveniences, our electronic payments typically clear your account in about two business days, whereas paper payments can take weeks. Recurring direct debit payments can also be set up using AutoPay, eliminating late fees and penalties.  In addition, keeping record of your payments and direct deposit details has never been easier thanks to our payments archive, which keeps track of your payments in an online database that you can easily access from anywhere.  Now you don’t have to worry about endless amounts of paper and books to keep track of.

It’s time for a more convenient and lower risk solution – ask your property management company today if you can pay your rent using RentPayment!