Our property management software doesn’t just help maintain your portfolio, it offers assistance with cash flow too.
For a business to run successfully it is important that the financial aspects are managed carefully too. Decorus’ unique integration with Sage means that you get a highly sophisticated property management system, created for large or specialised portfolios and a high-powered accounts engine!
With summer coming to a close and autumn in touching distance it is time to step up and make the most of what is, traditionally a busy period in the property market.
After a few quiet summer months it can be hard to get back into dealing with an extra workload, this can include marketing, moving tenants in/out, maintaining properties (especially in the winter), the financials can get overlooked.
Providing a service with a value
Businesses deliver a service, your clients pay for that service. Or that is how it should work but that isn’t always the case.
Generally, most people do what is expected, they receive a service and pay the agreed price on a specific date. If all of your tenants do this then great, if a few start paying their rent late then your cash flow should be ok (if managed correctly) but if more and more tenants become late payers then your business could be in real trouble.
There are many reasons why tenants don’t pay on time, some are one-offs, others are more regular. We live busy lives these days, sometimes we just forget, it’s a mistake that anybody can make. If this is just a one-time thing then you have nothing to worry about, your reliable tenants won’t let you down.
It’s the unreliable tenants or those who fall into circumstances such as illness or loss of employment who need to be a concern but the approach must be tactile and proactive otherwise an unpaid rent could turn into bad debt if it hasn’t been dealt with.
How can you chase your debtors without taking too much time or scaring them off
Each late paying tenant needs to be treated in a way determined by their circumstances, this obviously can be time-consuming but essential. If you approach a notorious late payer the same as a reliable one who mistakenly missed the due date then they won’t feel like they need to change their habits, however if it was the other way round then you might lose trust from the tenant who genuinely made a mistake.
Over the next few months the weather worsens which brings on illness which could see a loss of income for your tenants which should be taken inconsideration when dealing with unpaid rent. There is also people who have poor money management, especially around Christmas time but that shouldn’t have an impact on your business (you have presents to buy too!).
Cash flow is the money coming in and out of your account. You must be collecting more money than you are paying out otherwise you will be struggling as a business.
Late payers can affect this. If a lot of your tenants fail to pay their rent on time do you have enough money in your account to pay your own outgoings?
If you don’t deal with your late payers quickly their debt could escalate so that they won’t be in a position to pay you back and it becomes bad debt which can be damaging for your business.
Credit Control with Decorus
Sounds like a lot of hard work, right? Nobody enjoys approaching people about money, it can be an awkward conversation but with the additional credit control module for Decorus your tenant arrears will be dramatically reduced without having to have those conversations or the chasing.
All it takes is some automated processes to be created in the software which can be linked to different levels of tenant arrears. Once these are done then the software will chase your debtors until the payment has been made without having to remember to contact them or wasting your precious time!
This could be make or break for your business.
Want to minimise your tenant arrears without the workload?
Book an online demonstration for the only property management software to integrate seamlessly with Sage and see how it can manage your cash flow more cost-effectively.