Business Background
One of my businesses owns and manages residential rental
real estate. Generally, the tenants deposit their monthly rent payments
directly into a special “deposit account” I have set up at the bank. In the
past, I have manually checked the deposit account to verify the dates and
amounts of monthly rent payments. Then I have manually transferred this
information into a basic Excel file and calculated relevant late fees as
necessary. Finally, I have taken time to personally contact tenants as
necessary regarding past due amounts, upcoming payments, etc.
Problem
Manually looking up tenant deposits, calculating rent and
late fee charges, and personally contacting tenants is tedious, time consuming,
and, while necessary, adds relatively little value to the business. In our
technologically capable, but extraordinarily hectic environment it is essential
to leverage the abilities of technology to reduce the burden of these types of
repetitive, low value-add tasks. Time saved from automating this lookup,
recording, and contacting process can be better spent finding new deals,
evaluating opportunities, and developing business strategy.
Solution: System Overview
This tool automates the previously manual rental property
accounting process in three ways:
- The Update
Register tool automatically updates the three primary components of the Property
Account Register:
- Monthly Rent Charges—the
code automatically calculates monthly rent charges due based on the
difference between the current system time and past records already
recorded.
- Rent
Deposits/Payments—by automatically controlling Internet Explorer, the sub
procedure logs into the online deposit/payment account, accesses the
account history, and captures payments not yet recorded on the register.
- Late Fees—with
all the charge and deposit data entered into the register, an algorithm
is then able to calculate contractual late fees based on account balances,
deposits made, and payment due dates.
- The Email
Statement code emails an auto-generated account statement as a PDF file
attachment to an auto-generated email message. To accomplish this, the
algorithm opens an Excel template, personalizes it for the tenant, and
adds the relevant charges, credits, and account balance based on the date
range specified by the user. Then, a personalized email is generated using
a text file template that is auto-filled programmatically. Finally, a PDF
copy of the Excel statement is attached and the outgoing message is sent.
- The Text Statement
procedure sends an auto-generated text message to the tenant’s mobile phone.
This personalized message includes historical deposit information, current
balance credits or amounts due, and customized messages depending on
whether the account is current or delinquent.
Occasionally, tenants need reminders to keep the
importance of paying their rent on time at the top of their minds. Beyond
automating time consuming manual operations, this tool offers the additional
benefit of communicating regularly with tenants to help them keep their rent
obligations as a top priority.
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