There are many ways a landlord can maximise their rental income, but one strategy that’s often overlooked is the use of recurring payments. Recurring rental payments are a type of payment method where tenants pay their rent automatically on a regular schedule, such as monthly or bi-weekly, through an online payment system.
They will have to provide their landlords with their payment information and authorise automatic deductions from their bank account, credit card, or e-wallet.
Continue reading to discover how recurring payments can benefit landlords in Malaysia.
4 Benefits of Setting Up Recurring Rent Payments
1. Consistent Cash Flow
One of the most significant benefits of implementing recurring payments is the consistent cash flow it provides. Without a steady income stream, landlords may struggle to cover their expenses, such as mortgage payments, property maintenance, and other operational costs.
Moreover, fluctuating rental payments can lead to financial stress and uncertainty, making it challenging to plan and make sound financial decisions. However, with recurring payments, landlords can avoid these issues and ensure their monthly rental income is consistent.
2. Reduced Late Payments
Another significant benefit of implementing recurring rental payments is the reduced likelihood of late payments from tenants. When tenants authorise automatic payments, it eliminates the need for them to write and send cheques or manually make payments online.
As a result, they are less likely to forget or delay their rental payments, resulting in a smoother and more reliable transaction process.
3. Improved Tenant Relationships
In addition to providing financial benefits, recurring payments can help foster better relationships between landlords and tenants. By offering a convenient and reliable payment option, landlords can demonstrate that they value their tenants’ time and prioritise their needs.
Likewise, tenants who feel that their needs are being taken into consideration will have a better opinion of their landlords and are more likely to renew their leases.
4. Reduces Fraudulent Activity
Lastly, online recurring payments safeguard landlords and tenants against potential financial losses. For example, with traditional rent collection methods (e.g. cheques and cash), landlords are vulnerable to fake cheques, forged signatures, and theft.
On the other hand, recurring payments offer an electronic record of each transaction. Landlords can use them to track and verify rental payments as well as identify any discrepancies or potential issues with rent collection and resolve them quickly.
Rumah-i: A Property Manager You Can Trust
In conclusion, implementing recurring rental payments can be a game-changer for landlords looking to maximise their rental income. By adopting this payment method, landlords can simplify their management processes, reduce the stress and uncertainty associated with rent collection, and create a comfortable rental experience.
Rumah-i is a trusted property management company in Malaysia that provides simple property solutions for landlords and investors. We offer landlords a variety of property management solutions to ease their renting experience, including screening potential tenants, collecting rentals and more.