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.
__________________________________________________________________________
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.
