As a property owner or investor, you most certainly have had to deal with challenging rent collection. Bounced cheques, closed bank accounts, undelivered cash and deposit transfers to various banks are just some of the challenges you are faced with. Do you really have time to tackle this obstacle course every month?
It’s that time of year when leases are renewed so it's the ideal time to introduce a new, reliable, current and stable payment method that you can easily manage.
In the past, cheques and cash were the only possibilities when it came to paying rent. However, thanks to technological advances, rent can now be paid via bank transfers, Interac transfers and pre-authorized debit payments. So how do we choose?
While cash payments give you immediate access to your money, the process is unreliable and you are bound by your tenant's decision to pay you on time or not. This method does not allow you to trace the amounts received.
Cheques are more reliable and provide better traceability for your accounting. Some tenants will be able to give you all twelve cheques at once, while others will provide batches, and others still simply won't have any cheques on hand. Once you receive the cheques, you still have to process and deposit them. If you own several buildings that are linked to different banks, you will have to repeat the exercise for each payment to ensure that the sums are deposited in the right account. In the event of insufficient funds or if your tenant has a new bank account, you have to chase cheques once more to get paid.
Bank transfers and Interac e-transfers are an interesting alternative for owners of small rental buildings. They are fast and you have access to the money immediately. However, these payment methods must be initiated by your tenant and you have no control over when they decide to pay you, which is far from ideal. These kinds of transfers may require secret questions and answers. This is manageable if you are processing payments for one or two buildings, but it quickly becomes complicated in the case of larger real estate holdings. Who wants to have to juggle dozens of emails and deal with questions and answers so you can deposit payment into the right bank account?
Pre-authorized payments are becoming increasingly popular. They offer speed and traceability and are user-friendly. Since this payment method is initiated by landlords and not tenants, it gives you full control over the receipt of your rents. You don't have to follow up on cheques or go to the bank to deposit them. Has your tenant run out of funds? It takes only one click to transfer their rent payment. It's just as easy if your tenant has changed banks. All it takes is a few clicks and it's settled. Unfortunately, there's a catch.
Conventional pre-authorized payments require you to centralize all your transactions in a single bank account. If you are the sole shareholder, this isn't an issue. However, when you expand and have financial partners, they may want to use a different financial institution for their buildings. Then you’ll have to use several systems to process payments. However, there’s a way around this issue...
Otonom Solution has provided a multi-institution payment solution for the past 10 years. The company developed a universal banking system that allows you to collect all your rents in one place and deposit them into several bank accounts in as many financial institutions as you wish. This solution is ideal for expansion projects involving real estate investors. The system allows you to negotiate contracts without the stress of having to ask investors to comply with your bank. Payments from all banks are accepted and you can manage payments from your account. Interesting, isn’t it?
In addition to offering you multi-bank compatibility and 10 additional efficiency solutions, this service gives you the convenience of sending your transactions with or without management software. Proprio Expert, Hopem and Condo Manager are among the software products that can be linked to Otonom Solution. No bank can offer you this level of convenience. A few clicks and your transactions are completed. The use of management software also allows you to pay suppliers using electronic payments. With Otonom Solution, paying your suppliers is child’s play, whether you are the sole signatory or not.
Your time is precious and can be better used. Instead of juggling non-value-added tasks such as wasting time processing payments, you could use your time to expand your business or increase your quality of life and enjoy more leisure time. For a simple solution that understands your needs, choose Otonom Solution.