How to reduce late rent payments and improve cash flow for your business.

Late rent payments are always a challenge for landlords and property managers alike. Manual follow-ups after a late rent payment take up valuable time that could be better spent on other tasks, and they are often ineffective, or ignored for a period of time. During this time, the unpaid rent is costing you both time and money.

Reducing late rent payments has a huge impact on your cash flow, allowing you to reinvest back into your business quicker, and to prioritise business growth and revenue generation, not manual rent-chasing processes.

So the big question is:

“How can I reduce late rent payments and improve cash flow?”

Automated reminders.

Timely nudges that are automated, taking away the burden of you having to do everything manually are a game changer for your property management business.

When you deliver consistent and personalised notifications to someone to remind them about their upcoming rent payment, you dramatically increase the likelihood of payment being on time, and therefore reduce your risk of late payment, and improve your cash flow, all from some automated reminders! We bet that’s sounding pretty good, right?

We thought so - that’s why we include automated rent reminders as standard in togetha’s plans, so that you can focus on building your business more, instead of chasing rent.

But really, how effective is an automated rent reminder?

It turns out, very. The Rent Payment Trends Report by Zego found that property management companies that used automated rent reminders had a 13% higher rate of payment on time than those who didn’t. Let’s take a look at that in a little more detail:

Say you have 100 tenants, all paying £1,000 rent per month. That’s £13,000 hitting your account on time, every month, that without automated rent reminders, would be late, and you’d be chasing. That’s £13,000 that goes straight into your bank, allowing you to decide where best to allocate those funds.

Not bad for a totally hands-off approach to rent reminders, is it?!

We love a good study, so we’ll also share that reminders and push notifications have been the topic of a lot of research, and the general consensus is that they significantly increase engagement, and lead to behaviour changes when used regularly, which with rent, is exactly what happens - everyone wins!

Improving Cash Flow with Immediate Payments

So, you’ve got the increased rent payment on time, which is great, but how much does it really improve your cash flow if you have to wait several days for the transfer to hit your account?

With togetha, rent payments are deposited into your account immediately, with no delays, and no several days of transfer time.

Using our example above, that’s £156,000 hitting your bank account immediately, giving you access to that cash for a total of 24 days more per year than if your transfers take two days. That’s some serious cash flow difference.

This is all sounding good, what else do I need to know?

You’ve probably guessed, but so you’re getting the absolute most you can from reducing late rent payment, you’ll also benefit from:

Time savings: Automation eliminates the need for manual follow-ups, freeing up your time/your team’s time to focus on building the business, revenue generation, or simply enjoying the returns of your work.

Improved cash flow: Predictable and stable cash flow is key for any business, and the more security you can provide for your business, the better. Got maintenance requests piling up? Better cash flow can help with that.

Better relationships with tenants: Everyone knows what’s what, there’s less opportunity for misunderstandings, and improved communication.

Ready to reduce late payments and improve cash flow in your property management business?.

Book a no-commitment demo to see how togetha can improve your revenue operations.