Online rent payments save time and money. For landlords, online money transfers provide a faster, streamlined, and more secure process for receiving rent payments. Many renters love online options for paying their rent. They view it as hassle-free—no checks, stamps, envelopes, or getting it to the post office. But not all renters have bought into the simplicity of electronic payments. Responses vary from hesitancy to confusion to downright refusal.

It appears that misconceptions abound regarding digital transactions among those not in the habit of paying their bills online. While 74% of renters are below the age of 45 and primarily fall into the category of those who see online payments as the “norm,” that leaves a sizeable portion of folks who may not be as well-versed in electronic payments.

Their hesitancy to sign on to online rent payments stems from a variety of sources, including—

Confusion

• That “online” and “recurring” are the same.

Solution: Explain that while the option for a “recurring” payment is available, it’s not a requirement. A manual transaction, controlled each month by the renter, will result in a paid status the same as a recurring charge.

• That “scammers” will have access to their information.

Solution: Politely explain that while a check placed in the landlord’s hand may seem to be a foolproof way to pay one’s rent, the reality is that an inadvertently lost check can open the door for an account to be compromised.

While you can and should assure your renters that digital payments are secure, encourage them to speak with a customer service rep from their bank for additional assurance and information about how the process works.

Unfounded yet very-real-to them fears

• That the landlord will have continuous access to the renter’s bank account, which, of course, is not true.

Solution: Assure the tenant that a link between the renter’s account and the landlord’s account only allows funds first authorized by the tenant to be sent to the landlord –it does not make the account information or access available. Again, the tenant can confirm this fact with their bank.

• The lack of a canceled check or a paper receipt amounts to no proof of payment.

Solution: Make it clear to the tenant that their payment will create a digital record of the transaction—a record that can’t be eaten by the dog, accidentally thrown in the trash, or lost beneath the seat of the car. Consider sending a confirmation message that includes the date and time of the payment.

And possibly one of the biggest hurdles to clear might be some version of “you can’t teach an old dog new tricks.” Folks who aren’t tech-savvy assume it will be too difficult, and they won’t be able to figure it out. Some may flat out announce that they don’t want to learn. The key to scaling this hill will be a patient spirit and a willingness to listen. Reaffirm that you understand your tenant’s concerns and would be happy to help them navigate the system. When approached with kindness and understanding rather than condescension or irritation, there’s a good chance you will win over the reluctant tenant.

About Rentals America

Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.