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The rental agreement is a very important part of being a landlord. You need a written contract between you and the tenant that sets out your respective responsibilities and expected performance. A paper rental agreement requires you to be present to sign the rental agreement. You either bring it with you or mail it in to inspect for errors. This process can be tedious and time-consuming.
For many property management companies, written rental agreements were the norm. However, online property management software has come into the forefront, improving not only the efficiency of property management, but also the quality of the property. Lease contract procedure As with rental management in general, don’t worry if you’re not particularly tech-savvy; these software companies make e-signing super easy. If you or your tenants still have issues, contact your software provider’s customer support team, who will help you.
What are the benefits of signing rental agreements online, and how can you increase your revenue as a landlord? Here are some reasons why you and your business will benefit from making the switch.
Related: How this new, innovative technology will change the real estate industry
Increased occupancy rate
Vacant properties are a drag on landlords’ bottom line. Vacant properties mean stagnant income, so increasing occupancy rates is a top priority for property managers.
Completing your lease online speeds up the closing process. The sooner you can close the lease, the sooner you can get tenants into their rooms and start collecting rent. And because you don’t have to schedule in-person signing meetings with tenants or juggle complicated, busy schedules, you have more time to create other listings, screen potential applicants for other vacancies, or take care of any other tasks that need your attention.
Save money
The more you can save on operational costs, the more profit you make. Signing an online lease eliminates the need for copies and postage of physical leases. It also reduces the chance of human error. Signing a physical lease often results in missing signatures or initials. With a paper lease, you have to send the lease back and wait for corrections. An online lease doesn’t allow a tenant to move on without signing all required items, eliminating tedious postage and delivery costs.
Also, by signing online, you don’t have to worry about the risk of losing a physical lease, which could result in legal action being taken against you for not having a contract. With an online lease, you always have the document at your fingertips; you don’t have to dig through a filing cabinet or desk drawer to find it. With a physical lease, if you lose it, you could end up without a signed lease.
Related: How to get the most out of your rental property investment
Automatic Updates
Tenants who renew their leases are great for landlords because they provide an uninterrupted stream of rental income and the landlord doesn’t have to spend time and money marketing to and screening new tenants.
If you have a tenant who wants to re-sign, online leasing makes it incredibly easy. Contract terms, rental rates and other changes can be changed with just a click. Tenants simply e-sign to start the new lease.
It makes lease renewals quick and easy, giving you more time to focus on other aspects of your business. It also makes it much easier for your tenants to re-sign with you than they would elsewhere, encouraging them to stay for their next lease term and not forcing you to deal with vacancies.
Better Security
Paper copies are a security risk. Tenants will need to provide you with personal information, such as bank account information, social security numbers, and other sensitive information that shouldn’t be shared. Keeping paper copies in your office could expose that information to the wrong people.
Once stored online, lease agreements are protected by encryption and audit trails, making them legally enforceable and secure. Electronic signatures are fully recognized by the U.S. government, so you don’t have to worry about e-signed documents being invalidated.
Modernizing the Rental Experience
These days, renters want the convenience and efficiency of online leasing and rental technology. They can pay the way they want, whether that’s credit, debit card or bank transfer. Offering to sign a lease online shows you have your finger on the pulse of the market and are willing to adapt with the changing rental industry.
When you sign a lease online, you can automatically set late fees, send rent reminders to your tenants, and enjoy many other perks, allowing you to increase your revenue while providing your tenants with a modern, convenient rental experience.
Related: 6 Reasons the Real Estate Industry Should Embrace Technology
It’s time to ditch those outdated paper leases. Paper leases are less secure, slower and more cumbersome than switching to a modern online property management system. Save yourself time, effort and hassle. Explore online property management software today and see how much free up your filing cabinets full of schedules and paperwork.
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