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Andrew
Property Management
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Accepting Credit / Debit Card Payment
Wednesday, August 23 2006 08:49 PM
Does anyone accept credit or debit card payment of rent and any other fees? If you do, how do you handle the fees? Do you pass them along to the client somehow, or do you pay them, figuring handling money electronically is cheaper even with the fees than handling cash and checks?
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E. Olson
Property Management
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Re:Accepting Credit / Debit Card Payment
Wednesday, August 23 2006 09:22 PM
really its not cheaper to handle the money, if you have them mail the rent to you. What the online e-payments allows is convenience for your tenants, if they remember on the first of the month rent is due, then they can pay it at that time. Also if they are working on points in a credit card they can also use that. I did a search not to long ago dealing with this and found that it was about $16 per rent payment on average to use a 3rd party collection, and I would pad that into the cost and make them pay for it. I did not do that, because the demand is not there, and all of our tenants are paying on time as of right now. They have a big incentive to when they can loose $50 a month for late payment.
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Andrew
Property Management
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Re:Re:Accepting Credit / Debit Card Payment
Wednesday, August 23 2006 09:54 PM
So your view is that handling cash or checks doesn't cost very much? Are you valuing your time preparing deposit slips, going to the bank, etc.?
$16 on average, eh? Do you happen to recall either a) what search terms you used or b) where you found that figure?
I am wondering how I package making electronic payments in a way that encourages my client to see the additional charge as valuable to them. Earning points on their card is one way, and you hinted at that. What other marketing approaches can we come up with?
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Randy Hughes
Master Advisor-39 years of experience
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Re:Re:Re:Accepting Credit / Debit Card Payment
Wednesday, August 23 2006 10:21 PM
Andrew,
We allow our tenants to pay via CC only if they are behind on their rent. We also charge them the service fee on top of the rent amount they are paying. However, if i were trying to promote the use of CC payments, i would tell the tenants that they are:
1. paying on time and qualify for our monthly discount
2. saving the price of a stamp and envelop
3. building good credit by paying us promptly
4. accumulating frequent flyer miles
5. do not have to worry about having their rent lost in the mail
6. saving gas by not bring the rent check to our office
Hope these are a few good ideas that you can use. Good luck and good landlording!
Randy Hughes
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E. Olson
Property Management
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Re:Re:Re:Accepting Credit / Debit Card Payment
Thursday, August 24 2006 06:15 AM
here is one that I saw that i liked, and the fees are $30 for credit cards, and $3 for electronic check. copy and paste this link, and then click on the demo and it will tell you all the info.
http://www.propertysolutions.com/Home/Resident_Pay/
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Andrew
Property Management
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Re:Re:Re:Re:Accepting Credit / Debit Card Payment
Thursday, August 24 2006 06:21 AM
Thank you both! Very valuable information. I am sure I will be applying all these suggestions in one way or another.
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KaosProperties
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Re:Re:Re:Re:Re:Accepting Credit / Debit Card Payment
Monday, September 04 2006 04:40 PM
What happens if a tenant decides to "dispute" it?
Debbie
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Randy Hughes
Master Advisor-39 years of experience
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Re:Re:Re:Re:Re:Re:Accepting Credit / Debit Card Payment
Monday, September 04 2006 05:00 PM
Deb,
This is always a possibility, but i personally have never had a tenant dispute the charge. However, do not accept a charge card for the damage deposit...only rent. There is a legal problem with accepting a cc charge for damage deposit in Illinois.
Randy Hughes
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E. Olson
Property Management
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Re:Re:Re:Re:Re:Re:Re:Accepting Credit / Debit Card Payment
Monday, September 04 2006 07:07 PM
Also, you still would have history that the tenant has not paid rent, if they go over 5 days past the due date, then you have the right to serve them with a 5 day notice of eviction. Which is the legal paper work needed to start a real eviction at the court house.
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