How do your residents typically pay their dues and fees? It’s estimated that 67% of residents pay via paper checks even though checks as a payment method continue to decline each year. In our latest webinar, Matt DeWolf, VP of Business Development at FRONTSTEPS, covers the topic of paper checks, and provides valuable strategies to help your property management company save money and further invest in your business.
Hidden Costs of Paper Checks
The saying “you’ve gotta spend money to make money” holds true for check payments. Paper checks will cost YOU an average of $0.65-$0.75 to process. If you manage 50 communities with an average of 200 residences per community, these processing costs add up fast. Online payments, on the other hand, are completely free to process, so why continue spending money to make money when you can simply make money?
Hidden Banking Costs
DeWolf also covers how banks make their money and explains how these costs are passed along to property management companies, even when they have “free” checking accounts. From check processing to lockbox management, banks are providing a service that costs money. When companies have free checking, their earnings credits typically offset the costs of these services.
How to Save
By moving your payments online, you’re essentially reducing the bank’s costs, which leads to savings for your company. DeWolf shares how you can use these savings, typically applied through earning credits, to reinvest in your business. To learn more about earning credits and how to start these conversations with your banks, watch DeWolf’s informative webinar below!
Banking and earning credits can be a tricky topic. For more banking tips, get your copy of our free guide, What Every Property Management Company Needs to Know About Free Checking.