While it shouldn’t be the case, rent collection is one of the most onerous aspects of managing properties. Fortunately, there’s a solution.
PayProp is an automated payment platform for residential rentals that allows property managers to collect rent payments, manage arrears, report on portfolio financial, and more. Provided with dedicated client accounts through major banks—in Canada, PayProp uses CIBC—property managers, in effect, bypass the long-winded series of manual or semi-manual steps for each individual rent transaction.
“Automation can do collections, accounting and banking—in other words, your entire rent payment life cycle—for your entire rental portfolio in a couple of clicks,” said Tom Samodol, director of PayProp Holdings. “PayProp automation lets real estate professionals accept more forms of payment, effortlessly match incoming rent payments to the right tenant and property, timeously send bulk branded invoices and reminders via email or text, approve bulk rule-based third-party and management fee payments, and settle faster with landlords.”
To date, PayProp has proven a hit with thousands of property managers around the world. The platform integrates clients’ accounts with the Canadian banking system, thereby ensuring a high standard of compliance—PayProp’s employees, too, are trained in all aspects of web application security and only authorized staff are permitted access—which also includes rigorous physical, electronic and personnel security measures to protect their client’s data.
Impressively, PayProp’s data shows its client grow their businesses, on average, 23% per annum.
“Automating your rental book with PayProp allows your staff to process more properties with less effort, increasing productivity while lessening workload,” said Samodol. “As a result, you can grow your business without hiring more people, which enables you to use automation as your profitability strategy for 2019. With unprecedented access to real-time portfolio data on PayProp, you will be able to spot growth opportunities in your business and aggressively pursue them right away.”
Although PayProp’s primary clientele are property managers, its services also directly and indirectly benefit landlords and real estate investors. Enabling a professionally-branded, automated financial management communications with landlords and tenants, small brokerages appear more professional in the eyes of their own clients.
“PayProp also provides full drill-down visibility into every transaction, which is particularly useful for larger groups, as it gives head offices a real-time window into every administrator’s dashboard at every individual brokerage, providing full financial control,” added Samodol.
Central to the PayProp platform functionality is rent reconciliation, which is software-enabled “smart” recognition of payments that come from particular tenants and matching it to their identities.
“In addition to reconciliation of tenant payments, the system also automatically processes and accounts for any other incoming and outgoing payments and calculates what, on balance, is owing to the landlord or investor.”
In the event of delinquent tenants, PayProp helps property managers chase arrears to minimize risk to landlords.
“We give tenants every option to avoid being in arrears—firstly they can pay the rent in any way they like: Pre-Authorized Debits (PADs), EFT, online banking, Bill Pay—or if they really want to, cheques or cash,” said Samodol. “Secondly, PayProp’s bank integration lets property managers see in real time when someone hasn’t paid and enables sending out bulk automated reminders. Our global user data shows that 67% of tenants adjust their arrears position within 48 hours of receiving a text or email reminder. After mortgage payments, people are least likely to default on rent payments.”
PayProp can be leveraged by property management companies to attract more landlord clients, not to mention help create better clients.
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