According to CIBC, cheque fraud in Canada costs North American business more than $20 billion CAD every year. Residential property management is an industry that still favours accepting cheques and cash for rent payments and therefore property managers are at greater risk of being defrauded than the average person.
Even obtaining a series of post-dated cheques is no guarantee that each cheque will go through, or that the cheque won’t be a fraudulent cheque. Often, by the time fraud is detected, you’ll be on the hook for not just bank charges, but also for the missing amount of rent from that tenant. Unfortunately, it can take a few weeks for banks to identify whether cheques have cleared or are fraudulent. Forward thinking property managers should consider adopting an electronic rent payment system for their properties.
There are many benefits associated with using electronic payments. Firstly, it’s convenient for tenants to pay their rent online. They can use online banking to send electronic rent payments at any time, seven days a week or agree to pre-authorized payments every month. Secondly, electronic payment systems keep track of payments more effectively because all the information is digitized and centralized. Lastly, and most importantly, it is a completely secure way for property managers to collect rent payments.
No more cheques or cash to deposit.
No more chances of being defrauded with forged bills or altered cheques.
Payments are settled much faster than depositing paper cheques and funds flow directly into the landlord’s bank account.
Electronic rent payment systems allow property managers to spend less time pushing paper and more time working on the property itself. Imagine the freedom and productivity!