Collecting rent may appear straightforward. But, in practice, it can be demanding and frustrating: cheques get lost in the mail, tenants send payments late or pay the wrong amount, etc. Visiting the bank repeatedly to deposit cheques can be a hassle, too.
That’s exactly why we created Rent Collection at SingleKey. This online tool automates rent payments, ensuring the fast and safe transfer of funds from your tenant’s bank account to yours. Simplifying this routine yet crucial task will save you time, money, and effort in managing your rental business. This guide explains how SingleKey’s Rent Collection works and how to get started using it.
The benefits of Rent Collection
Here’s why you should consider signing up for SingleKey’s Rent Collection tool.
Hassle-free payments
The Rent Collection tool automates the collection and depositing of rent payments. Money is transferred from your tenant’s bank account to yours each month on the agreed-upon date—no manual approvals or other paperwork is required. As a result, you’ll never need to chase tenants for late rent, track down lost cheques, or visit the bank to deposit payments. You’ll also avoid heated arguments with tenants who insist they paid you even though you never received the money, insisting that “the bank must have made an error.”
Secure transactions
SingleKey’s Rent Collection platform employs cutting-edge security measures to ensure your data doesn’t fall prey to thieves. We’re partnered with a leading Canadian payment provider to ensure that collecting rent doesn’t expose you to cyber threats or compromise your privacy. Each transaction that passes through our platform is encrypted to block unauthorized access.
We NEVER collect or store your bank login credentials and other sensitive information. We only retain bank account numbers to ensure rent payments are processed smoothly and accurately. Additionally, your banking details are never disclosed to your tenants, eliminating another potential security risk.
Easy to use
Setting up SingleKey’s Rent Collection takes only a few minutes. Follow these steps to get started:
- Provide basic details about your lease.These include property address, rent amount, and payment due date.
- Invite your tenant to sign up. Send them a link where they can connect their bank account.
- Link your bank account. Confirm your identity and provide your bank account information to enable automatic deposits.
Once enrolled, you can access our user-friendly control panel by logging through your SingleKey account. From here, you can track rent payments, create payment reminders for tenants, customize payment schedules, and more. For help or questions, click the chat bubble in the bottom-right corner at SingleKey.com to contact customer support.
Understanding Rent Collection withdrawal options
Rent Collection offers two ways to collect and deposit rent payments: Interac e-Transfer and Pre-authorized debit (PAD).
Interac e-Transfer
Interac e-Transfer is a secure and efficient method for users to send and receive money between Canadian bank accounts. It’s similar to peer-to-peer (P2P) money transfer apps like PayPal and Google Pay and is widely used to conduct personal and business transactions.
To send you a rent payment, a tenant must have access to online banking at a financial institution that offers Interac e-Transfer through its platform. They also need to know your email address or mobile number. Here’s how it works:
- Your tenant creates an e-Transfer for the rent amount and sends you a notification by email or text.
- You’ll receive an alert about the payment via email or phone, along with instructions on how to deposit the money.
- If your bank account has autodeposit enabled, the funds are deposited immediately. If not, you’ll need to answer a security question before you can receive the transfer.
Note: The funds don’t travel through email or text – only the notification does. The transaction is authorized, cleared, and settled through the banks’ infrastructure. This feature makes e-Transfers efficient and minimizes the risk of fraud.
Interac e-Transfer payments are best suited for landlords who own and manage a small number of rental units. It offers speed, flexibility, and direct control of the rent collection process:
- You don’t need to ask your tenants to sign and return pre-authorized payment agreements.
- Payments arrive fast, usually within a few minutes or, at most, a few hours.
- You can alter your rent payment schedule as needed without changing your online banking settings.
As a bonus, there are no NSF payments because e-transfer transactions occur instantly (or nearly so). The tenant’s bank verifies that there is enough money in their account to cover the transfer. If not, the system rejects the transaction. This feature of e-Transfers helps you avoid the delays and issues caused by NSF payments, which can occur with cheques.
In Rent Collection, Interac e-Transfer will send a notification to your tenant requesting they pay their rent. Your tenant MUST approve this request before the money is deposited into your bank account. You’ll receive payment on the same business day once it’s approved.
Pre-Authorized Debit (PAD)
Pre-authorized debit (PAD) is an automated payment method that withdraws money from one bank account and deposits it to another when payment is due. It’s a popular method for paying recurring bills, such as utilities and streaming services.
To set up PAD payments, you must obtain your tenant’s permission to withdraw money from their bank account on the rent due date. They must also supply you with their bank account details (transit, institution, and account number). Once set up, your payment processor submits a request to the tenant’s bank to trigger the withdrawal and deposit the funds into your account.
PAD is ideal for landlords who manage many rental units and need a hands-off solution that ensures consistency and control. With PAD set up, rent arrives on time without further intervention from you or your tenants. There are no security questions or additional manual steps required to complete the payment collection process. In contrast, Interac e-transfers require tenants to initiate payment.
PAD is also safe and secure, as the funds travel through banking channels regulated by Payments Canada. There’s little risk of thieves intercepting sensitive information.
However, NSF payments can still occur during PAD transactions, as they’re not processed instantly, unlike Interac e-Transfers. You’ll also need to wait longer for payment to arrive in your bank account, usually three to five business days.
Our final thoughts
Collecting rent isn’t always a breeze. Sometimes, it’s challenging, frustrating, and tedious. Whether it’s because of a forgetful tenant missing their payment deadline or cheques arriving late due to a strike at the post office, getting paid on time isn’t a guarantee when you’re a landlord.
SingleKey’s Rent Collection tool helps you avoid these pitfalls by automating this crucial task. It eliminates the need for cheques, minimizes the risk of late payments, and spares you from tedious administrative work. Learn more about how to get started with Rent Collection. We guarantee you won’t miss waiting for those cheques to arrive in your mailbox!
