The world as we know it has gone digital. From the doctor’s office to your utility bill, nearly every industry has hopped on board the online payment train. But why is it that commercial real estate lags behind?

While more and more residential landlords are making online rental payments a reality, it seems that just as many commercial property managers are getting left in the dust. As a property owner, there are significant advantages to offering a digital payment option for your tenants. Read on to understand just how important this service is and how it can greatly influence your business.

Why Make the Switch?

According to Forbes magazine, on average people make payments 8 days sooner when they have the ability to pay online. If that isn’t reason enough to start rolling out a digital payment option, we don’t know what is. Imagine greatly reducing, or even eliminating late payments altogether. Not to mention the move would be a stellar upgrade in your customer service and much appreciated by your tenants. The convenience and improved accountability are as much a win for them as they are for you.

Charge it!

With the world of ecommerce growing at an incredible rate, it should come as no surprise that cash transactions and paper checks are quickly becoming a thing of the past. In a recent survey conducted by payment processor TSYS, 1,000 Americans were asked how they prefer to pay. Between cash, check, debit and credit card, the majority went paperless. 75% of people interviewed stated they would prefer to pay with either a debit or credit card over check or cash.

It’s safe to say these numbers are indicative of a greater trend. So why not give the people what they want? As a landlord, there are so many ways to take your business into the digital world. From partnering directly with your bank to set up merchant services, to enlisting property management software like Innago, it’s never been easier to set up online payment.

Helpful Advice

Before you start researching which online payment processor might be right for you, there are a few key factors you’ll want to consider.

Pricing

This is where you’ll see the biggest disparity between alternatives. Some softwares will look to charge a percentage on the total dollar amount transacted. And while upwards of 2% might not sound like a whole lot when you think about one rental payment; however, if you’re collecting rent from multiple properties, that can add up quite quickly. Other companies, like Innago, charge absolutely nothing to the landlord, making it a much more fiscally appealing option.

Security

When it comes to managing your business, it’s important to know that you and your clients are protected. There are a few things you’ll want to look out for when weighing your payment processor options. Ask them about two-factor authentication, SSL certification, and their encryption processes. Their knowledge and know-how on the matters will be a good indication of whether or not they are a company you can trust and feel secure in.

Customer Service

The Help Desk. It’s not a super sexy feature. And nobody really thinks about it until there’s an issue. And then it’s all you can think about. This element is not important until it really really is. And that’s why we advise you to do a little digging and find out what level of customer service your potential management software or other option provides before signing up.

Regardless of what route you take with your switch to online payment processing for commercial properties, the most important thing is simply that you take one. The world has spoken, and it’s saying that it wants to pay online. Making the jump from cash and check to digital payment will open up a world of opportunity to you and your tenants. Additionally, property management software can upgrade and enhance your workflow in ways in never thought possible. The people are calling for change in commercial real estate rent payment methods. Landlords – it's time to pick up.