Since the ESIGN Act was signed into law in 2000, it’s had a dramatic impact on the speed and accessibility of document execution. The act has been a huge benefit to landlords who regularly produce and sign leases, addendums, and notices, and who must often coordinate between multiple parties to get those documents executed.
But many landlords still do not take advantage of all the ways in which digital document signing can save them time, money, and headache. Below are three reasons your rental business needs online leasing.
Increase Your Leasing Velocity
When evaluating a potential rental property, a seasoned investor knows to consider the property’s potential vacancy rate. Any days that your property is not rented are days that you are not earning rental income. For that reason, it’s critical to reduce your vacancy rate as much as possible.
There are many techniques to reducing vacancy rate like increasing the speed at which you clean, paint, and refresh a unit or lowering the price you’re asking for in rent closer to the market value. But one often ignored way to reduce vacancy rate is to speed up the signing process, and online lease signing can do just that.
With traditional paper leases, you had to either coordinate a time in which you could meet all the prospective tenants and signers, or send, print, sign, scan, and repeat with the document itself. Each of these options adds significant time to the process of getting a document signed which is a problem for two reasons. For one, this may mean your property sits vacant for longer. For another, the more days you wait to legally bind your potential tenants to the property, the more opportunity they have to back out.
Better Organization and Less Paper
File cabinets are a hassle. Binders, paper documents, and manila folders all take up physical space and take time to organize. Even worse, they’re susceptible to destruction via flood or fire. And it’s not just for you. If you deal in paper leases, your tenants are more likely to lose it themselves meaning they will commonly ask you to make a new copy.
Online leases solve all of these problems. They’re quickly and efficiently organized as a part of the lease signing process. They’re digital only and, especially if they’re stored on the cloud, impervious to physical damage. They take up less space and they’re always available for your tenants when needed. If you’re using a free online lease signing service, they cost less than purchasing paper and ink, and they’re even better for the environment. Online documents save you time and save the planet trees.
Convenience for You and Your Tenants
Signing documents in person is never a fun process. Unless you sign your lease immediately after a showing, you likely need to coordinate with your potential renters to get the document signed. This is inconvenient for you, especially if you have multiple properties that need to be leased, but it’s also inconvenient for your tenants. They want the lease signing process to be a breeze and they’re likely excited about their new rental. Putting another barrier in place may not completely turn your tenants off, but giving them a clean, easy signing process helps establish you as a professional, modern landlord.
And signing online doesn’t just benefit you when attracting new tenants. It also makes renewals a breeze. A tenant retained is worth more than a new tenant as it means you don’t have to turn the rental unit over, so the easier renewals become, the better off you’ll be.
Make Leasing Easier
Most online lease tools are easy to set up and use. Lease templates allow you to quickly grab the right document with the right information. Rental amounts, lease dates, pet addendums, and other additional documentation can often be automatically added and integrated into your lease process.
Online lease documents make the entire leasing process faster and more convenient for you and your tenants. You get some relief from tedious paperwork, and your tenants have one less hassle to deal with, making them that much more likely to renew.
With the ESIGN Act making digital signatures strong as any paper document, there’s no reason not to embrace online leasing.