Increase Your Rental Property Revenue by Making This One Simple Change Discover how online lease signing can expedite the rental process, fill vacancies faster and boost your revenue as a landlord.
By Dave Spooner Edited by Chelsea Brown
Key Takeaways
- Written leases have been the norm for many rental managers, but this process can be tedious and time-consuming.
- Alternatively, online lease signing offers landlords many benefits, including improved occupancy rates, cost savings, quicker lease renewals, better security and a modernized, convenient rental experience.
Opinions expressed by Entrepreneur contributors are their own.
Leases are a crucial part of being a landlord. You need a written agreement between you and your tenants dictating what each party is responsible for and expected to carry out. With paper leases, you must be present to sign a lease alongside your renter or mail it to them, then inspect it for errors. This process can be tedious and time-consuming.
While written leases have been the norm for many rental managers, online property management software has started to take over and revolutionize not only the lease-signing process but the entire rental management sphere. Don't worry if you aren't particularly tech-savvy — these software companies have made e-signing a breeze. And if you or your tenants are still having trouble, be sure to reach out to your software provider's customer support team. They're there to help.
What are the pros of signing leases online, and how can it increase your revenue as a landlord? Here are a few reasons why you and your business will benefit from the switch.
Related: How This New and Innovative Technology Is Disrupting the Real Estate Industry
Improves occupancy
Vacancies are a revenue-killer for landlords. Empty units equal stagnant income, so improving occupancy rates should be top of mind for any property manager.
Signing leases online expedites the lease-signing process. The faster you get leases signed, the faster you can get tenants into your units and start collecting rent payments. Also, without having to set up a physical lease-signing meeting with your tenant and coordinate complicated and busy schedules, you have time to write other listings, screen potential applicants for other vacancies and do other tasks that may need your attention.
Saves money
The more money you can save on operating expenses, the more profit you experience. Signing online leases eliminates the necessity of physical lease copies and mailing fees. It also reduces the likelihood of human error — missing signatures and initials are very common with physical lease signing. With a lease on paper, you would have to mail back the lease and wait for their correction. Online leases do not allow tenants to move on without signing all required fields, cutting back on tedious mailing and shipping rates.
You also don't have to account for the risk of losing a physical lease when you sign it online. Losing your lease could mean you are vulnerable to legal action since you're without your contract. With online leases, the document is always readily available. There is no need to dig through your filing cabinet or desk drawers to find it. With a physical lease, you could lose it and be without your signed written rental agreement.
Related: How to Get the Most Out of Your Rental Property Investments
Automated renewals
Tenants who renew their leases are fantastic for landlords — there is no interruption in rental income, and landlords don't have to spend time and money marketing to and screening the unit's new renters.
When you have a renter who is willing to re-sign, online leases make it exceptionally easy. You can make modifications to the term dates, rental fees and any other changes with a simple click. Tenants will only have to electronically sign to start their new lease.
Quicker, easier lease renewals give you more time to focus on the other aspects of your business. It also makes it so re-signing with you much easier for the tenant than it would be to sign a lease elsewhere, encouraging the renter to stay put for another lease term and not forcing you to deal with the vacancy.
Better security
Paper copies are a security risk. Tenants must give you personal information like bank account information, social security numbers and other sensitive details that must not be shared. When you keep paper copies in an office, it's possible for that information to be seen by the wrong people.
When leases are stored online, they are protected by encryption and audit trails, which makes them legally enforceable and secure. Electronic signatures are fully recognized by the U.S. government, so you don't have to worry about electronically signed documents not being valid.
Modernized renting experience
These days, renters want the convenience and efficiency of online leases and rental technology. They can pay the way they want, whether by credit, debit card or bank payments. Offering to sign leases online shows that you know how to stay up to date with the market and are willing to change to fit the shifting rental landscape.
With the ability to instate automatic late fees, give tenants rent reminders and many other benefits when signing a lease agreement online, you can boost your revenue while providing your tenants with a modernized, convenient rental experience.
Related: 6 Reasons Why the Real Estate Industry Needs to Start Embracing Technology
It's time to ditch the outdated paper leases. They're less secure, slower and more tedious than switching to a modern online property management system. Save yourself the time, effort and hassle. Research online property management software today, and see how your schedule — and overstuffed filing cabinets — free up.
