There are enormous benefits for property managers that receive checks, especially those who receive payments from multiple locations. First, checks can be deposited electronically from the office rather than having to have a person physically drive to the bank to deposit the checks.

Second, the digital images can be sent to the principal administrative office for posting to the accounts receivable system and transmitted to the bank. For many multi-location businesses, remote deposit also means that bank accounts can be consolidated, reducing fees and easing the reconciliation process. The time it takes to get the check to the bank is reduced, and because the entire check settlement process has been improved, businesses usually enjoy reduced banking fees and improved access to deposited funds.

An additional benefit, and perhaps the most important, is that some remote deposit vendors also offer integration into back office accounting systems, reducing the time involved with posting checks as well as improving posting accuracy.

Procedurally, with Remote Deposit Capture, the real estate property manager or an employee scans checks when they come into the front door, so the clearing process starts immediately. Most banks accept later posting times for imaged checks. In the paper world, the checks must be deposited, which may not happen the same day they are received, and then must go from the bank of first deposit through the clearing system, with mail delivery in between each step.

Property management firms using Remote Deposit Capture no longer need to concern themselves with the bank with the most convenient physical location. Instead, they can look for the financial institution that offers the best financial relationship in terms of better earnings or reduced fees.

By starting the check settlement process Remote Deposit Capture, the real estate management enterprise has access to funds two to three days earlier than with paper check processing. These funds can be invested or used to reduce debt. It is not uncommon for a large company to see substantially increased interest earnings by speeding up check settlement times.

Accelerating the processing time also means that property managers will get notification of bad checks much more quickly, enabling them to start collection procedures more quickly. The faster a property manager starts to collect a bad debt, the more chance he or she has of receiving the delinquent funds. The property manager can also make a quicker decision regarding eviction proceedings, so a better-paying tenant can occupy the unit sooner, boosting the property management firm's revenues.

Converting checks into electronic images eliminates the need to key check details into the property management company's accounting system, reducing or perhaps even eliminating redundant data entry. So, bank reconciliation is simplified, enhancing administrative/back office efficiency and accounts are credited faster, improving customer service.

The enhanced revenues, reduced expenses, enhanced fraud protection and better account management capabilities make Remote Deposit Capture a beneficial technology for property management companies. The sooner a property management firm enters this new technological environment, the sooner it will be able to reap the rewards of this new law.

The views expressed here are those of the author and not of Real Estate Media or its publications.

John Sarich is executive vice president of RemitPro Inc. a provider of treasury and risk management solutions. He can be reached at [email protected].