Investment New You Can Use

One of the many challenges of investing in real estate is finding the time to manage and oversee your properties while still holding down a full time job. Of course hiring a property manager is an option, but for many investors with a small number of units it is not always cost effective. Investors with only a few properties can probably keep up with the management duties and maintain a full time job with little trouble, but for those with multiple properties this can be more difficult. In an effort to increase your customer’s satisfaction and reduce the amount of time you have to spend on property management duties you should consider taking rent payments through your website with credit card, debit card, and e-check.
There are several companies that will provide the service for you just make sure you compare the cost based on the amount of business you do in a month. The tenant can either set up their payments for the whole year in advance and the money will be taken on the day they choose or they can go on line and make the payment each month. The rent then automatically goes into your business account and the tenant gets a confirmation email that it has been paid. Your tenants enjoy the convenience this service gives them.
You will love the service because it allows you to track rent payments received each month regardless of where you are physically and also allows you to pull up an electronic copy of when a particular tenant paid rent for the past year. This comes in handy when you are getting ready to renew a lease and can show the tenant how many times they paid late over the past 12 months. It is also an easy way to see who always pays on time, or early, which allows you to send them a little gift to recognize their promptness. In addition it eliminates the over used excuses “the checks in the mail.”
To increase the number of tenants who will use the automated system you can offer a discount off their rent because you don’t have to have someone process their payment. You can also make it mandatory for all new tenants. Obviously, you could make exceptions for those who have no computer access. Accepting electronic payments will defiantly make your business a little easier. As I have heard many times, work smarter not harder. I continue to look at ways to automate my business and increase my cash flow.  No Excuses in 2011!

**As always, review all aspects of any proposed Real Estate exchange with a competent tax and/or legal advisor.