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When does your rental business want to collect payment from customers? At the time of booking, or when the rental is returned?
Regardless of the answer, there are big implications to the customer experience and your payment processing costs.
No matter what you choose, the RentMy rental management solution has you covered.
The Case For Up-Front Payments
Rental businesses are a unique brand of retail, as there are often upfront charges on the order that are not ultimately charged (settled); examples are deposits, delivery fees, and other “presumed” usage fees that may not ultimately be collected. These fees, despite the that they may be waived or refunded at the time the rental is closed can significantly increase your merchant processing costs, thus eating away at your profit margins.
Here is a simple example:
Assume your customer rentals an item for $100. Your business requires a 15% security deposit (in case the item is damaged), and there is a $20 delivery fee for the order. And, the local sales tax rate is 8%.
Assuming a typical processing rate of 1.5% for in-store payments (or up to 3% for online payments), the processing fees for this order will range from $2.19 to $4.37. And, your business doesn’t get to keep the sales tax (which is remitted to the local tax authority). The revenue for the order is $135 minus your processing fees, so you keep (for the in-store example), $132.81. Not too bad, right?
But, assume that everything with the rental goes right: The product comes back in pristine condition, and maybe even a day early. Do you refund the security deposit in its entirety? Do you credit back a portion of the rental fee because the item was returned early? If the answer to either of the questions is yes, you are not only paying processing fees on a higher total order value that never materializes, but you will pay your processor not only to capture the payment but also to refund the charge(s). The net is that processing fees take a much more significant chunk of your profits.
Collecting When the Rental is Returned
You can certainly avoid some unnecessary charges for capturing fees that might ultimately be waived/refunded if your business collects funds at the end of the rental, but there are some things to be aware of with this approach, too.
RentMy offers the ability for you to “authorize” charges on a customer’s credit card without actually “capturing” those funds and paying the full merchant processing costs. This method not only reduces upfront expense to accept and order but also leaves some additional flexibility at the end of the rental.
In the above example, we assumed that everything went “right” with the order: the product was returned in good condition and even a little earlier than expected. However, some businesses can’t always count on the perfect customer. If your company plans to collect fees after the order, you can avoid some upfront costs and add any extra fees (late fees, cleaning fees, etc.) and capture funds all at once (thus paying a fractional “authorization” fee and then a full “capture” fee once funds are collected. Keep in mind, however, that customers may not manage their credit as well as they should, and there is a risk that funds that were previously authorized may not be available when the rental is closed.
Though various online rent payment systems are available, it would be confusing to choose which one will be safe and secure for your business.
Without integrating any online payment systems, you can not conduct your transaction smoothly. This article highlights the 5 best online rent payment systems that will assist you to integrate your preferred payment systems with your rental business.
Let’s take a look at the 5 best online payment systems and explore which one will be the best for what purposes.
|Payment Systems||Best For|
|Avail||Small Rental Business|
|Buildium||Large Rental Enterprise|
|Pay Your Rent||Same Day Rent Processing|
|DoorLoop||Attractive User Interface|
Want to integrate a user-friendly and easy-to-navigate online rent payment systems? In this case, Avail will be the best choice for your rental business. It has a user-friendly interface and easy navigation system that will allow you to easily operate the entire system.
Moreover, this online rent payment system can allow landlords to collect the rent for free. Also, you can simply use this system and upgrade your account including the FastPay service, cutting the time to receive rent, and so on.
With this system, the landlord just needs to enter the rent amount, lease dates, and other details. Then, this online rental payment system can conduct the rest of the activities automatically.
If you start a small rental business, you can integrate Avail because it offers a 100% free plan to get started. There is no charge, rather you will get unlimited units to access this system.
But you have to pay to get higher-tier plans and access various premium features. In this regard, you need to pay $5 to get the premium plans with unlimited features.
Have a large rental business? Looking for a secure online payment system? If so, you can go for Buildium online rent payment system. It allows the users to manage your properties and collect rent more effectively.
Moreover, the Buildium payment system can accept any credit card or bank transfer rent payment. If you do not have a credit card or bank account, you can conduct retail cash payments. Also, it allows the tenants to pay their rent in multiple ways.
Though the Buildium is designed for large business enterprises, you can access around 50+ units through one of the priciest options. Most significantly, you can customize the entire system according to your business information such as the business logo, and so on. You will get around
This online rent payment system offers basically three pricing plans based on the number of units and real estate investing goals.
You will get a 14-day free trial and the pricing package starts at $50 per month for up to 20 units. Moreover, you can access their higher-tier Growth plan starts at $160 per month as well as the Premium plan starts at $460 per month.
You will get a free incoming rent payment and can set up the first five bank accounts for free. However, you need to pay $99 for each additional bank account.
Looking for the same-day rent processing system? If so, you can try PayYourRent online rent payment system. This rent payment system provides free, same-day rent processing, and transferring into your account.
With this online rent payment system, you can easily reconcile the bank deposit as well as send daily deposit notifications through this software. This online rental payment system allows you to manage all properties and you will get complete property management software as well.
Moreover, it can be able to generate complete tenant reports that will assist you to understand all three major credit bureaus. This online rent payment system also allows tenants to connect their accounts and get some discounts.
The PayYourRent online rent payment system allows the landlords to perform check the background of the tenant as well as the tenant can be able to purchase renters insurance.
This online rent payment system offers three pricing options based on the number of units. You can access the one to five units at $9.95 per month. If you need to access more than five units, you can go for the Landlord Plan or Corporate Plan.
In this case, Landlord Plan allows the users to get six to fifty units at $19.95 per month. On the other hand, you can access more than fifty units through the Corporate Plan.
Most significantly, the Landlord Plan charges around $2.50 per ACH transfer. Also, the credit card processing fee is around 2.75% to 2.95% for American Express cards. Finally, it would be required around $9.95 for returned transactions.
DoorLoop is another exclusive online rent payment system that provides an all-in-one property management solution. It allows users to collect rent payments through various features and functionalities.
The DoorLoop online payment system provides an accurate order or vendor payment system. Most significantly, it has a built-in CRM system with a tenant portal that allows users to keep track of all prospects and active tenants.
Moreover, you can be able to lease your properties, manage work orders, and automate accounting processes through the DoorLoop rent payment system. So, this online rent payment system helps to streamline and automate your rental business.
You will get 50% off for the first two months from this DoorLoop rent payment system. In this online rent payment system, you will get three types of pricing packages – Starter, Pro, and Premium.
As a result, you can access the Starter package at $24.50 per month with up to 20 units. Also, you can access their most popular Pro plans at $39.50, and the Premium plans at $54.50.
It will provide a 30-day money-back guarantee if you found any security issues in this online rent payment system.
If you are looking for a cost-effective online rent payment system, you can look over the PayRent payment system. This online rent payment system allows users to collect rent online in a safe and secure way.
After enrolling in this system, you can set up and receive recurring payments. Most significantly, this online rent payment system allows the tenants to pay online which will be beneficial for both owners and tenants.
When you manage a lot of property, this online rent payment system keeps a continuous flow by providing an accurate account management system. So, the PayRent payment system helps to save your precious time and eases bottlenecks.
PayRent online rent payment system offers three pricing plans. You can access the basic package without any monthly subscription fees and you will get less than 10 units.
You also can access other types of pricing plans to get some exclusive features and functionalities. For example, you can access their most popular package “Do-It-Yourself” at $19 per month and get 10 or more rental units. Also, you can access more than 25 rental units through the “Go-Like-A-Pro” package.
It is a fundamental thing to integrate a safe and secure payment gateway with your rental business. To conduct the entire transaction of your rental business, you can integrate multiple online rent payment systems.
However, you may not get such kind of facilities from any rental management system. Thus, you need to choose the rental management software which will allow you to integrate the best online rent payment system.
In this case, you can go for RentMy which will provide a complete rental management solution. Also, this rental software allows users to integrate their preferred online rent payment system with their rental business.
Each rental business will make its own cash flow decisions. RentMy understands the importance of the “authorize only” and “authorize and capture” selection, and we are pleased to support both methods with our easy-to-use and awesomely powerful rental software.
Hopefully, you have got your answers and resolved all of your confusion. Here, you have learned about the 5 best online rent payment systems that will assist you to choose the suitable one for your business.
So, it is high time to ensure a flawless transaction by integrating a safe and secure online rent payment system with your rental business.
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