Everyone tries to avoid falling into rent arrears. Sometimes it happens due to financial problems and sometimes it’s just a simple mistake. Rising rents in property hotspots are adding to the problem. But using a payment automation platform could make all the difference, according to one PropTech entrepreneur, who says a simple SMS message generated by an automated system could be enough to keep most tenants on track.
Neil Cobbold, chief operating officer at PayProp UK explains that seeing the live status of a portfolio via an automated system can quickly and easily show letting agents which tenants are in arrears in real time. These tenants can then be automatically reminded via their mobile phone to pay their rent. According to Neil, around 90% of text messages are read within three minutes of receipt and a staggering 64% of tenants who are in arrears respond within 48 hours of being reminded. “Automating arrears management processes could save agents and their clients thousands of pounds each year,” he told Letting Agent Today in October.
Neil also suggests that increasing automation could help future-proof letting agents against the higher levels of transparency and regulation which are now being introduced by government into the lettings sector. (Read more on this at https://bit.ly/2OB5IKY ) “With incoming laws requiring mandatory Client Money Protection scheme membership and banning up-front fees, it’s vital that agents can easily prove their transparency by producing a record of all incoming and outgoing payments…” Automated payment systems are a quick win for agents and could really help tenants to make their payments on time.