Getting Paid Is Becoming Harder – Pay Rent Online!
Getting paid is becoming harder for many property managers and rental owners.
According to Intuit’s “Get Paid Survey“, 22 million of the nation’s smallest businesses are waiting for $1,500 in overdue payments each month, creating a collective $33 billion strain on their cash flow. “While $1,500 in overdue payments may not be a big deal for some, it could be a make or break deal for the smallest of small businesses,” said Joe Kaplan, president of Intuit’s Innovative Merchant Solutions Division.
Decipher Inc. conducted the survey, sampling 751 small business owners with less than 10 employees. Here are some interesting findings:
- 42 percent of small businesses stated that “getting paid quickly by customers” is one of the key issues that keeps them up at night. This is preceded by “finding new customers” with 67 percent, and “losing customers” with 44 percent.
- Nearly 40 percent of small businesses are “trying to get paid by customers as fast as possible” as part of their plan to weather the economy. This ranked third after “reducing costs” with 60 percent and “focusing on customer retention” with 59 percent.
- Nearly 20 percent of small business owners admit to forgetting to invoice or follow up on an overdue invoice. Over 50 percent of these respondents admit that they are simply not organized and lack an automated system for tracking payments.
- 33 percent of business owners stated that they are chasing more overdue payments today than they were last year.
Because customers typically pay a variety of different bills on a monthly basis, business owners are encouraged to send statements to clients – in order to remind them and influence timely payments.
Tenants however do not often receive reminders for their largest bills (rental payments), and these bills often go overlooked. As a result, many real estate owners end up suffering from late payments, aging balances, and bad debt. That’s why you should setup automated rent reminders and get your tenants to pay rent online!
“With current economic conditions, not getting paid on time is becoming a serious fear for real estate investors,” says Pankaj Shukla, CEO of T-ReX Global, Inc. “Not receiving a rent check can make or break some of our clients… so it feels good to offer services that can help our customers sleep easier at night…”
Of the 10 million real estate investors in the US, 9 million of them own fewer than 10 properties and are considered small business owners. Only a small fraction of them use property management software to manage rental property finances.
Does not getting paid keep you up at night? Get your tenants to pay rent online!
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