Tenant Inc. Info

The Best Way to Improve Collections and Reduce Delinquencies

Written by Tenant Inc | Nov 22, 2024 12:45:00 AM

Collecting payments and managing self-storage delinquencies can be a real pain. While it’s one of the most important tasks for a self-storage operator, does it have to be the most time-consuming? The answer is no, with automation. By automating self-storage collections and delinquency management, you can streamline operations, save more money, and influence your cash flow stronger than ever.


Driving Better Self-Storage Collection Results

If you’re not automating routine operations such as collections, your self-storage business isn’t running as efficiently as it could, and should, be. It’s like trying to dance but stepping on your own two feet. By automating your self-storage operations, cloud-based software can take the steps for you, ensuring you stay compliant and making your job easier than ever before.

Mailing in checks or driving to a brick-and-mortar store to pay for a recurring good or service is a thing of the past. With today’s tech-savvy consumer, there’s a high demand for autopayments. Whether it’s for a streaming subscription, utility bill, or a self-storage unit, autopay is growing in popularity because it eliminates pesky obstacles, such as having to remember to make a time-consuming payment each and every month. When implementing autopay, you’ll no longer deal with the out-of-sight, out-of-mind excuses we’ve all been guilty of. Customers can stay in control of their experience and maintain real-time access to their units.

Offering autopay is one of many smart strategies you can implement to enhance tenant convenience and security. It allows you to capture payments automatically, 24/7 while significantly reducing your physical efforts and unlocking a variety of advantages like improving collections and reducing self-storage delinquencies.


Benefits of automating self-storage collections:

  1. Accept payments 24/7
  2. Simplified process
  3. Easier for customers
  4. Automatic reminders, notifications, and receipts
  5. Can help with fraud protection
  6. Saves you time
  7. Reduces physical efforts
  8. Helps prevent delinquencies
  9. Improves collection results

Tip: Consider setting up automated reminders, notifications, and alerts by integrating your autopay feature with your property management software. This can notify tenants before their card is going to be charged, let them know if an update to their account is needed, and provide them a receipt after their auto payment has been completed. Giving your customers a simplified method for paying, through an efficient and consistent platform, will enhance their experience and give you more control and insight into your cash flow.


Managing Self-Storage Delinquencies, Automatically

With the right cloud-based Property Management Software (PMS), you can know immediately if a tenant is past due on a payment. Better yet, all collection data can be recorded, tracked, and stored on the cloud. Gone are the days of tirelessly walking around the facility to perform mundane lock checks and placing yellow/red locks on unit doors. Not only can the overlocking process be automated, but releasing overlocked units can be too. This means that if a tenant pays a bill at 10 PM on a Friday, you won’t have to send a site manager to the property after hours or have a frustrated customer waiting for business hours to regain access to their unit. They can regain immediate access once their payment is made online, even if no one’s on site. Instead of performing repetitive tasks, site managers can spend their time more wisely and focus on generating new revenue.

Since delinquency processes are handled differently in every state, it can be tricky to follow the correct timeline and steps to stay in compliance. Luckily, some PMS systems do this part for you and automate every step along the way while ensuring you’re always in compliance.

Benefits of automating self-storage delinquency management:

  1. No more manual lock checks, overlocks, or releasing overlocked units
  2. Simplified process
  3. Convenient for customers
  4. Saves you time
  5. A site manager can focus on other important tasks
  6. Reduces physical efforts
  7. Ensures efficient and consistent practices
  8. Improves collection results
  9. Better control over cash flow


Automating self-storage operations such as collections and delinquencies can help you streamline your business and save more money. Not only will it reduce your physical efforts, allowing site managers to focus on what’s important, but it will ensure your facility’s handling collections and delinquencies efficiently and consistently.

While automating self-storage collections and delinquency management plays a vital role in the efficiency of your business, there are additional tools and tactics your self-storage business should implement to boost success. 

See how we helped Claremont Company gain 10% more online rentals, after hours. Read the case study today!