Every tenant pays rent in a way that is (sometimes) convenient for them. Writing checks and mailing them, online bill pay, recurring EFT through their banks, dropping off payments in person. And although it happens every month, even the most responsible people forget to pay on time, which can lead to late fees and throw off the property management companies’ or landlords’ cash flow.
Mr. Smith realized that he could provide a valuable service to both tenants AND property owners by automating rent payments.
Mr. Smith contacted Payment Systems Group, Inc. (PSG) for help in developing an online rent payment program for property managers. His knowledge and experience of the rental property market – along with our deep technology expertise – were a perfect combination that allowed us to collaboratively design the payment process needed for his venture, Collect My Rent, Inc. (CMR).
“We initially hired an overseas development house to handle the development of our CollectMyRent.com product. After hitting numerous roadblocks, we were relieved after contacting Payment Systems Group. Their understanding of business processes and the expertise of their workforce put our minds at ease. To date the project is on time and under budget, and we couldn’t be happier.”
— Ryan Smith, President, Collect My Rent, Inc.
CMR allows automatic rent collection for both residential and commercial property managers. New and existing tenants can enroll in the program with an online application on CMR’s web site. All enrollment information is protected using state-of-the-art web and database security methods. The enrollment includes a NACHA compliant authorization for recurring debits of the bank account. The authorization is also backed by a credit card authorization to charge a credit card if the scheduled debit fails for any reason. Property owners can manage their rent collections on the same web site. All funds are collected and dispersed automatically using the NACHA network.
In addition to ease and convenience, tenants appreciate the program because their payment is confirmed, on time, secure, and follows a schedule they choose. Tenants also benefit from PSG’s ability to report payment data for FICO scoring, which can help tenants build their credit.
Both large and small apartment management companies are relieved that rent payments are on time, and that they don’t have to deal with paper checks, manual bookkeeping, late payments, and misapplied payments.
PSG’s experience in developing equity acceleration programs for the home mortgage market helped Mr. Smith “fast track” his program for rent collection. The combination of ACH transactions backed by a credit card gave rental managers the security that they were looking for to ensure that all rent payments could be collected in full, on time, every month.
Our proven expertise in database design and web service based payment processing saved Mr. Smith hundreds of hours of development time and expense. Mr. Smith was able to use PSG’s ACH Payment Processing Engine to process a nearly unlimited number of payments from tenants in residential complexes nationwide. The ACHPPE® web service is able to process and send payments to all residential managers and offer online reporting of the accounts of all of their tenants. Tenants can update their own account information online using the same web site.
PSG and CMR plan to develop additional business applications for the growing real estate market using PSG’s business application tools and software development team.