Possibly the biggest challenge building owners and associations have is receiving on time payments from their members.
There are a few ways to ensure timely payments from tenants, one of which includes late fees. No one wants to pay more than they owe and late fees are typically a good deterrent for this.
However, a property management company can do three things to make it easier to pay on time:
- Few people carry cash anymore and fewer still have checks. A property management company can offer your tenants an online account management portal where they can pay their rent or association fees from the convenience of their computer or phone. This has proven an effective way to receive on-time payments as a tenant does not have to do anything more than click a few buttons. Online payments can also be set to manage late fees if not paid by a certain date.
- Better still, tenants can set up recurring payments, further reducing the amount of time they have to spend thinking about making their payments on time.
- An online portal also offers convenient access to ledgers at all times to authorized board members. Additional financial services are also often included by the property manager, such as budgets, tax returns, and reconciliations.
Property management services go beyond just collecting fees. With access to the building’s accounting, a management company can manage any funds that need to be allocated to fees, compliance, and taxes on the building owners’ part as well.