Here is a thought leadership article from PayProp
For tenants experiencing increasing financial pressure, rental debt can be a burden, and when things go wrong, debt repayments can further reduce their ability to pay the rent. In these circumstances, letting agents can find themselves spending so much time chasing late payments that their focus on growing the business and servicing customers is eroded.
Who is PayProp?
PayProp is an automated payment and reconciliation platform for the residential rental industry. By automating and optimising inefficient property rental management processes, PayProp frees up real time for real estate agents to do what really matters.
Click here to find out how PayProp can help your agency
Dealing with all this can be frustrating if agencies don’t have the right tools, but with proven PropTech in place it can become just another automated admin task. PayProp not only offers solutions for managing bad debt and arrears, but provides powerful tools for preventing them in the first place.
PayProp can help letting agents stay on top of arrears before they become a problem.
More ways to pay
The best way to avoid arrears is to make paying the rent as simple as possible. Today’s tenants are used to instant transactions thanks to the ease of delivery services and online shopping, which is why PayProp-powered agencies can offer their tenants instant online payments 24/7.
Arrears reminders
PayProp’s series of escalating arrears reminders sent via e-mail and text message not only provides reasonable pressure on a tenant to remedy a bad situation early on, but it also demonstrates the intention as an agent representing the owner to resolve a matter amicably and without legal action. Our platform’s fully integrated escalating arrears reminders allow agents in England and Wales to chase arrears in full compliance with the law. In one click of a button in approval, arrears reminders can be sent every 48 hours to all tenants in arrears until they clear their debt.
Court proof
If the worst were to happen and a tenant had to be evicted, PayProp has agents covered. Our automated payment platform accurately records every transaction to the penny with data directly from a bank-integrated agency client money account, so tenants cannot claim to have paid something they have not. In addition, our automated audit log makes it impossible to edit or delete data – meaning courts can rely on it to show when payments were missed, when reminders were sent and how much debt is owed.
Practical tips to avoid escalated arrears:
- Invoice on time, every time using an automated invoicing system
- Actively chase outstanding monies using PayProp’s automated e-mail and text message reminders
- Maintain continuous communication with tenants
“I call the system on PayProp the Ferrari of arrears management; it navigates you through all the issues to be able to service the landlord effectively and proactively.”
Brenda Lange, Director, Leapfrog Property Group
