CREM Management's team has embraced the latest software to use across its Southern California Commercial Real Estate property management firm. Technology has revolutionized almost every aspect of this and other industries, including rent invoicing for Los Angeles and Orange County commercial real estate investors. Technology-assisted rent invoicing enhances automation, facilitates online payments, eases record-keeping, sends out reminders, and integrates with most accounting systems. The process is much more efficient and convenient, making rent management easier and improving property value. This recent CREM Management blog post, noted that “happy tenants are better for everyone.”

Positive tenant relationships add an intangible value that some Southern California property managers may overlook, but not us. As a long-time Los Angeles and Orange County property management company, we are particularly interested in maximizing the tangible and intangible value of our clients’ portfolios.

IF YOU USE IT, THEY WILL COME

The five main benefits of using technology for rent invoicing include:

1. Automation: Through technology, rent invoices are automatically generated and distributed—saving time and reducing the chance of errors.

2. Online Payments: Digital invoicing allows tenants to make rent payments online, providing convenience and flexibility to both landlords and tenants.

3. Record Keeping: Using software for rent invoicing allows owners to maintain detailed records of current and past invoices and payments, streamlining bookkeeping and simplifying robust financial analysis with greater trust in the data.

4. Reminders and Notifications: Technology can send programmed Rent Due reminders to tenants, reducing the possibility of missed payments.

5. Integration with Accounting Systems:  Some rent invoicing platforms will integrate with accounting software, simplifying financial reporting and decision-making analysis for landlords and investors alike. CREM Management loves this aspect of technology for our clients. 

IF YOU DON’T, THEY MAY GO

We’ve seen it all! Established in 2009, CREM Management is full-service residential and commercial property management company servicing Southern California.  We are exceptionally dedicated to optimizing each property under management. With offices in Los Angeles, Newport Beach, Santa Monica, and Glendale, CREM Management can meticulously manage clients’ investments throughout Southern California, ensuring each is operating at its highest and best use. 

There are some pretty stiff consequences to the improper handling of rent invoicing. Sending out invoices should be easy, but we have seen that DIY Do-It-Yourself (or newbie) landlords have run into problems that affect the landlord and the tenants and, ultimately, the real estate’s investment values. High turnover and vacancies from unhappy tenants definitely affect resale. Please see our post on what landlords need.

Here are some other potential concerns: 

1. Cash flow problems: Inaccurate or delayed rent invoicing can disrupt a landlord's cash flow, making it challenging to pay expenses, keep the property in tip-top shape, and maintain financial stability. Related to the cash flow problems are:
2. Compromised financial records: Imprecise rental invoicing can lead to incomplete or inconsistent financial records, making it difficult for landlords to track and analyze their properties’ ROI, and perhaps, the marketability of the real estate. 
3. Administrative burdens: Manual invoicing or outdated systems can result in increased administrative work for landlords, requiring more time and resources to manage rent collection and invoicing tasks. 
4. Compliance issues: If rent invoicing is not conducted accurately or in compliance with relevant regulations, landlords may face legal and financial consequences. 
5. Strained tenant relationships: Inefficient invoicing processes can lead to frustration and distrust among tenants, potentially affecting the overall landlord-tenant relationship and the marketability of the property in the near and long term.

CONCLUSION

Rent invoicing and collections seem to be administrative and trivial in nature on the surface. However, the tenant/landlord/investor relationship is core to the success of commercial real estate. There used to be a saying: “Don’t sweat the small stuff.” CREM Management likes to answer, “Yes, but it’s all small stuff.” Sweating the details sets us apart from other Southern California property managers.  

Through CREM Management’s Collection Services, tenants can pay their rent online in real time, via electronic fund transfers, or by credit card. This technology allows us to offer our owners up-to-date information on demand and in a clean and thorough fashion. At the same time, our tenants can go on about their lives without worrying about whether they’re current.   

Please get in touch with CREM Management today to learn how to use technology for rental invoicing and collections and anything else. We strive to help you reach your commercial real estate investment profitability goals. 

Our goal is always to help you optimize your asset,while ensuring its longevity with a minimum of hassles!