Author Topic: How to accept credit card payments on rentals?  (Read 25550 times)

SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 758
How to accept credit card payments on rentals?
« on: May 23, 2013, 11:09:12 AM »
Longtime landlord, first time we're going to have a tenant pay by credit card. Does anyone know of the best way to do this? An app like Square won't work, because you need to swipe the card (I believe) - but what else is there for someone who wants to make monthly automatic payments?

Advice? Ideas?

etselec

  • Stubble
  • **
  • Posts: 168
Re: How to accept credit card payments on rentals?
« Reply #1 on: May 23, 2013, 11:26:26 AM »
Paypal?

Keep in mind that with any solution, there will be credit card processing fees - probably around 3.5% plus $0.99 per transaction.

If what the tenant wants is monthly automatic payments, it probably makes more sense to do it through bank bill pay, which at many banks and credit unions is free and doesn't carry any processing fees.

freelancerNfulltimer

  • Stubble
  • **
  • Posts: 157
Re: How to accept credit card payments on rentals?
« Reply #2 on: May 23, 2013, 11:33:01 AM »
I think with Square wallet the tenant can send the payment with the credit card so you wouldn't have to swipe it. But that's just a guess.

Why does the tenant want to pay with a credit card?

madage

  • Bristles
  • ***
  • Posts: 405
  • Location: TX
Re: How to accept credit card payments on rentals?
« Reply #3 on: May 23, 2013, 11:35:17 AM »
In addition to Paypal, this might also be done with Amazon Payments or Google Wallet. I know nothing about the terms of service for things like this, though.

There are some companies advertising online rent payment processing, but their fees definitely don't make sense for a single rental.

olivia

  • Pencil Stache
  • ****
  • Posts: 770
  • From Consumerism to Minimalism
Re: How to accept credit card payments on rentals?
« Reply #4 on: May 23, 2013, 11:52:47 AM »
PayPal will definitely work, but I would pass along the fee to the renters.  There may be a cap on how much you can accept without having a "professional" account in PayPal, too.

SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 758
Re: How to accept credit card payments on rentals?
« Reply #5 on: May 23, 2013, 12:25:51 PM »
We actually want to test this out. The benefits to us: easy rent collection. No going to the post office to get the checks and then deposit them. If we're out of town, the money still gets collected/deposited.

We've had tenants pay automatically through their banks, which works wonderfully, but not everyone wants to do that. We really want to see how it impacts the ease of collection.

From what I can tell so far, accepting debit cards can be done relatively cheaply, like in the 1% range, which is well worth it. Credit card payments vary, and so far I'm not sure any of the processing places are affordable.

In our ideal world, we would have every tenant's credit card automatically billed the first of every month. If we could do this for under $10/month/unit, it would be worth it to us, seeing as we could raise the rent to cover it as new tenants come in.


dragoncar

  • Walrus Stache
  • *******
  • Posts: 9442
  • Registered member
Re: How to accept credit card payments on rentals?
« Reply #6 on: May 23, 2013, 12:34:15 PM »
Square can use non-swiped numbers at a higher fee plus transaction limits.  Beware of chargebacks and consumer protection laws.  I'd at least get a signed form agreeing to the monthly charges, etc.

"

Another Reader

  • Walrus Stache
  • *******
  • Posts: 5218
Re: How to accept credit card payments on rentals?
« Reply #7 on: May 23, 2013, 12:47:20 PM »
My property management companies offer tenants credit card payments, but with a hefty fee.  However, I recently paid an A/C contractor through Intuit payments.  I believe the charge is $0.50 to the vendor.  It's sort of like a debit card, but the checking account and/or debit card info does not go to the merchant.  I may offer that to the tenants in the self-managed properties.

HawkeyeNFO

  • Bristles
  • ***
  • Posts: 300
  • Location: Moose Scrotum, Alberta
  • Retired at 44.....back to work at 45
Re: How to accept credit card payments on rentals?
« Reply #8 on: May 28, 2013, 01:59:12 PM »
Google Wallet is taking credit cards, and letting you send money to anyone with an e-mail.  It's free for now, but they are going to implement a fee of 2.9% at some point after it's not "new" anymore.

Christiana

  • Stubble
  • **
  • Posts: 173
    • Zatera Ul
Re: How to accept credit card payments on rentals?
« Reply #9 on: May 28, 2013, 02:04:42 PM »
Our out-of-town landlords have us mail the rent check to their credit union, with the account number and "For Deposit Only" written in the back endorsement section.  If you want, you could set up a separate account just for rent deposits.

SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 758
Re: How to accept credit card payments on rentals?
« Reply #10 on: May 28, 2013, 05:15:04 PM »
Christiana, that's an interesting idea and could work very well for us. At present, we have ours send a check to the PO box, which we then have to pick up and deposit in the credit union. What you do saves a nice step in the process and also provides a fair documentation for if a deposit is late or not.

That might actually be exactly the answer I was looking for - thanks!

And then maybe as a second step, if a tenant pays late more than once, we could switch them to credit card payments, and have them be responsible for service fees. It would have to be spelled out clearly in the lease, but I'm liking this....

Google Wallet seems excellent, too! And money can be sent with a bank account OR debit/credit, so that would leave it up to the tenant to decide, and even could allow them to do a bit of both if necessary. Hmmmm. Nice idea!


SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 758
Re: How to accept credit card payments on rentals?
« Reply #11 on: May 28, 2013, 05:16:00 PM »
Christiana, how do your landlords know the money is from you vs. other tenants?

Christiana

  • Stubble
  • **
  • Posts: 173
    • Zatera Ul
Re: How to accept credit card payments on rentals?
« Reply #12 on: May 29, 2013, 05:32:55 AM »
Christiana, how do your landlords know the money is from you vs. other tenants?

We're their only tenants--they are renting out their house for a few years, but plan to return after that.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28286
  • Age: -998
  • Location: Seattle, WA
Re: How to accept credit card payments on rentals?
« Reply #13 on: May 29, 2013, 08:53:03 AM »
All of the online services mentioned aren't specifically for tenants, more generic stuff.

There is online property management software that allows you to take payments from tenants in this way, Google will find you several, I'm sure. (Buildium, for example, is one prominent one I can name off the top of my head that does it.)

Also, just unsolicited advice: I would never, ever accept a credit card payment from a tenant.

Too easy for them to dispute the charges later and suddenly be 3-6 months behind on their rent before you even start any eviction stuff (versus one late payment and you give a pay rent or quit notice).

No way I'd take a CC payment.

(I also don't like dealing with checks in the mail.  My tenants have deposit slips, and take cash into a local branch of the bank and deposit it directly into my account.)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

swick

  • Magnum Stache
  • ******
  • Posts: 2881
Re: How to accept credit card payments on rentals?
« Reply #14 on: May 29, 2013, 09:44:34 AM »
Arebelspy has some good points.

I pay my rent (at my original suggestion as we have an out of town land lord) by paypal. It works really well for us as we can choose to pay by bank account, debit and credit, if we choose to pay by CC we pay the fee - which given our points card actually is a good deal for us. Basically it gives us options and it doesn't matter to the land lord.

It works out really well for us and has been really easy.

swimmer21

  • 5 O'Clock Shadow
  • *
  • Posts: 12
Re: How to accept credit card payments on rentals?
« Reply #15 on: May 29, 2013, 01:16:14 PM »
Credit Cards, Paypal, and many other forms of payments offer a lot of protections to the consumer, which in general, is not good for the business. One electronic payment service that doesn't do this is Dwolla (and they only charge $.25 per transaction). For example, one complaint against you as a landlord from a tenant could have funds frozen in PayPal for weeks, with little recourse to get the money. Even normal credit cards have the chargeback mechanism, which tends to favor the consumer.

Also, for rent sized payments, you should definitely be paying less than 3% total for credit card payments.

I love technology, but I think that if I was a landlord the only electronic payments I would accept would be ACH.


SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 758
Re: How to accept credit card payments on rentals?
« Reply #16 on: May 30, 2013, 08:24:45 AM »
All good points.

Dwolla is awesome! I'd never heard of it before.

One of my units is literally less than half a mile to our credit union, so giving them deposit slips would work well. But arebelspy, how do you know which payment is from which tenant? Does the bank put a memo on the deposit?

Thanks for this continuing discussion. It's helping my thinking evolve. My goal = simple, least amount of work involved, but definite receipt of the money, so ACH/direct deposit probably is the way to go.   

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28286
  • Age: -998
  • Location: Seattle, WA
Re: How to accept credit card payments on rentals?
« Reply #17 on: May 30, 2013, 08:30:18 AM »
All good points.

Dwolla is awesome! I'd never heard of it before.

One of my units is literally less than half a mile to our credit union, so giving them deposit slips would work well. But arebelspy, how do you know which payment is from which tenant? Does the bank put a memo on the deposit?

Thanks for this continuing discussion. It's helping my thinking evolve. My goal = simple, least amount of work involved, but definite receipt of the money, so ACH/direct deposit probably is the way to go.

There's a few options.  If they pay with check (and direct deposit the check for you) you can see the check image.  You can make their rent amounts slightly different.  You can ask them to text you when they've made the deposit.  You can have separate bank accounts.

I definitely like logging into my bank account on the 3rd/4th (rent is due on the 1st, late after the 4th) and seeing all the money directly deposited.  Much easier than waiting for a check in the mail, and they don't make excuses because it's on them to go and deal with it.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 758
Re: How to accept credit card payments on rentals?
« Reply #18 on: July 31, 2013, 10:03:17 AM »
An update on this: My credit union just signed up with a service called popmoney, through which you can send requests for money and reminders (VERY cool), and the person can pay their rent - seems to be any amount - for only 95 cents.

This would take care of the record-keeping "who paid what" issue, which is great.

I'm thinking when a tenant signs his lease, I will have him make a choice and initial the choice. I will pay my rent the following way:

____ I will make a walk-in deposit to XXXX credit union, for account XXXX, on or before XXXX. I understand that if the deposit is not made by 5 p.m. on the first of every month, a late fee in the amount of XXX will be accessed...."

____ I will send a payment in the amount of XXX from my bank account to account XXXX, on or before XXXX. I understand....

____ I will pay via popmoney, in the amount of XXX, on or before XXX. I understand there is a service fee of 95 cents, and that fee is my responsibility, including any increase during the rental terms.

Any feedback?

Another Reader

  • Walrus Stache
  • *******
  • Posts: 5218
Re: How to accept credit card payments on rentals?
« Reply #19 on: July 31, 2013, 01:48:49 PM »
My AC vendor uses Intuit Payment Network.  Very slick interface, easy to use for the customer.  Transfers are quick.  It appears to be inexpensive and supposedly coordinates with QuickBooks.  I have thought of using it for rent payments, but haven't gotten around to investigating it yet.

I would NEVER give a tenant a checking account number.  They can figure out the bank from the cancelled check, but I don't want them to be able to tie my name to an account number.  A trip to the bank is cheaper and less time consuming than dealing with the results of identity theft. 

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28286
  • Age: -998
  • Location: Seattle, WA
Re: How to accept credit card payments on rentals?
« Reply #20 on: July 31, 2013, 01:59:39 PM »
They can figure out the bank from the cancelled check, but I don't want them to be able to tie my name to an account number.

Shouldn't the property/bank account either be in an LLC name (in which case they can't get your name from it), or if it's in your name, they would be easily able to get it anyways (via public property records, etc.)?

I'm confused as to how exactly you operate without your tenants knowing your name, yet they'd be able to find it out from a bank account if they didn't otherwise know it.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Another Reader

  • Walrus Stache
  • *******
  • Posts: 5218
Re: How to accept credit card payments on rentals?
« Reply #21 on: July 31, 2013, 02:03:17 PM »
They mail me the check, I deposit it.  They know my name and the bank from the cancelled check, but not the account number.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28286
  • Age: -998
  • Location: Seattle, WA
Re: How to accept credit card payments on rentals?
« Reply #22 on: July 31, 2013, 02:08:41 PM »
They mail me the check, I deposit it.  They know my name and the bank from the cancelled check, but not the account number.

Ah, I misread.  I understand.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

ender

  • Walrus Stache
  • *******
  • Posts: 5955
Re: How to accept credit card payments on rentals?
« Reply #23 on: July 31, 2013, 02:10:43 PM »
My roommates pay me via Google Wallet.

Works out wonderfully, but I suppose I trust them..

SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 758
Re: How to accept credit card payments on rentals?
« Reply #24 on: August 01, 2013, 11:15:14 AM »

I would NEVER give a tenant a checking account number.  They can figure out the bank from the cancelled check, but I don't want them to be able to tie my name to an account number.  A trip to the bank is cheaper and less time consuming than dealing with the results of identity theft.

I know. Inherently, this aspect doesn't sit well with me, but the credit union people assure me that people make deposits into other people's accounts all the time. It's very standard. No one but me (with ID) can do anything other than make deposits.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28286
  • Age: -998
  • Location: Seattle, WA
Re: How to accept credit card payments on rentals?
« Reply #25 on: August 01, 2013, 11:21:49 AM »

I would NEVER give a tenant a checking account number.  They can figure out the bank from the cancelled check, but I don't want them to be able to tie my name to an account number.  A trip to the bank is cheaper and less time consuming than dealing with the results of identity theft.

I know. Inherently, this aspect doesn't sit well with me, but the credit union people assure me that people make deposits into other people's accounts all the time. It's very standard. No one but me (with ID) can do anything other than make deposits.

Sure.  Anytime you write a check to anyone, your account number is on the bottom of your check.  It's not "sensitive" information, but you still don't want to tempt someone.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

AlmostIndependent

  • Pencil Stache
  • ****
  • Posts: 521
  • Age: 39
  • Location: Anchorage, AK
Re: How to accept credit card payments on rentals?
« Reply #26 on: August 01, 2013, 02:56:22 PM »
I have been using Buildium. They take rent from tenants via electronic deduction from a checking acount. It costs me $.50 per transaction. I can also bill them trough the website for any other things they might have to pay for. It generates automatic late fee notices and adds it to their account. Tenants can submit work requests etc. It's kind of a pain to set up but once you're up and running it's a snap. The landlord edition only sets you back $15/mo.

SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 758
Re: How to accept credit card payments on rentals?
« Reply #27 on: August 01, 2013, 03:52:49 PM »
That looks great! Can you tell me how you use it and let me know if it's helpful? It looks like the price is now $25/month, which is still OK for my needs. Thanks.

AlmostIndependent

  • Pencil Stache
  • ****
  • Posts: 521
  • Age: 39
  • Location: Anchorage, AK
Re: How to accept credit card payments on rentals?
« Reply #28 on: August 01, 2013, 04:07:56 PM »
$25 a month is for the "property manager" edition. The landlord edition and pricing is not easy to find on the site. I would sign up for the free trial and then call them and tell them that you manage your own properties and would like the landlord version. Thats what I did.

AlmostIndependent

  • Pencil Stache
  • ****
  • Posts: 521
  • Age: 39
  • Location: Anchorage, AK
Re: How to accept credit card payments on rentals?
« Reply #29 on: August 01, 2013, 04:09:56 PM »
I forgot to mention, you can also take credit cards through the site but it's expensive. I opted to not sign up for card processing. I didn't want to pay to take cards and I figured if I charged renters the fee then no one would use it and so it wouldn't be worth my time to set up.

decisionprof

  • 5 O'Clock Shadow
  • *
  • Posts: 19
Re: How to accept credit card payments on rentals?
« Reply #30 on: August 01, 2013, 08:10:37 PM »
We have used TrexGlobal Property Management software for the last year and have been happy with it.  You can manage up to four units for FREE - we have 10 units and got a good deal for 3 years of service (half price).  We've offered on-line rent payment and our first tenant started using it two months ago.  They love it and get email reminders when it is time to pay the rent.  Great customer support for the few times I needed to call them about the management software.
http://www.trexglobal.com/property-management-software/landlord-property-management-software-features

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28286
  • Age: -998
  • Location: Seattle, WA
Re: How to accept credit card payments on rentals?
« Reply #31 on: August 01, 2013, 08:43:03 PM »
We have used TrexGlobal Property Management software for the last year and have been happy with it.  You can manage up to four units for FREE - we have 10 units and got a good deal for 3 years of service (half price).  We've offered on-line rent payment and our first tenant started using it two months ago.  They love it and get email reminders when it is time to pay the rent.  Great customer support for the few times I needed to call them about the management software.
http://www.trexglobal.com/property-management-software/landlord-property-management-software-features

I used Trexglobal for a year or two.  Wasn't bad, but I switched over to custom excel spreadsheets to have more control and flexibility (and ensure it will always be available, rather than at the whims of a company).

A good way to go when starting out, IMO.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Micheal

  • Stubble
  • **
  • Posts: 103
Re: How to accept credit card payments on rentals?
« Reply #32 on: August 01, 2013, 11:00:33 PM »
I always have and always will pay rent via money order, automatic receipt and no landlord who cashed the money order can say I did not pay (one tried to take me to court but i had two years worth of money order stubs and a report that said the money orders were cashed from western union in his banks name).  Cash is nice but too easy to dispute, and I'd never give my bank or credit card info to a landlord, I've seen too many fraudulent ones.  My current LL agrees with me and prefers this as i can just drop my rent by his house even if he is at work.

AlmostIndependent

  • Pencil Stache
  • ****
  • Posts: 521
  • Age: 39
  • Location: Anchorage, AK
Re: How to accept credit card payments on rentals?
« Reply #33 on: August 02, 2013, 09:45:18 AM »
As a landlord you never see any of your tenants financial information. They pay through a secure system. It records their payment (amount, time, date, etc) and transfers the money to your bank. Its quick and painless and there is a record you can both access. I don't accept anything else; I get paid even if I am not around to collect rent and I don't have to make a trip to the bank to deposit checks, cash or money orders.

SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 758
Re: How to accept credit card payments on rentals?
« Reply #34 on: August 02, 2013, 05:57:24 PM »
I'm going to try Buildium. I'll report back how it works. Thanks for all the ideas.

ritchie70

  • Bristles
  • ***
  • Posts: 268
Re: How to accept credit card payments on rentals?
« Reply #35 on: August 02, 2013, 10:56:15 PM »
I would NEVER give a tenant a checking account number.  They can figure out the bank from the cancelled check, but I don't want them to be able to tie my name to an account number.  A trip to the bank is cheaper and less time consuming than dealing with the results of identity theft.

I think what you want is to have a "sweep account" which can be setup so that whenever it hits a certain limit the funds are "swept" to another account. It's essentially a "deposit only" account, which multi-location retail businesses use routinely so that their stores can do deposits without having any access to the bank account where the business really keeps its money.

I doubt a credit union can set that up for you; most credit unions are focused on individual members, not on business features.

salmp01

  • Stubble
  • **
  • Posts: 120
  • Location: Minneapolis, MN
Re: How to accept credit card payments on rentals?
« Reply #36 on: August 07, 2013, 08:49:33 PM »
Quote
I would NEVER give a tenant a checking account number.  They can figure out the bank from the cancelled check, but I don't want them to be able to tie my name to an account number.  A trip to the bank is cheaper and less time consuming than dealing with the results of identity theft.

I have a separate account that I give to my tenants and they go to my bank and deposit.  All my rents are due on the 1st so on the 2nd I move all the money into my "primary" account so this account will have close to a 0 balance most of the time.  My banker recommended that I do this so I've done this for the last couple years.

AlmostIndependent

  • Pencil Stache
  • ****
  • Posts: 521
  • Age: 39
  • Location: Anchorage, AK
Re: How to accept credit card payments on rentals?
« Reply #37 on: August 07, 2013, 08:57:01 PM »
Quote
I would NEVER give a tenant a checking account number.  They can figure out the bank from the cancelled check, but I don't want them to be able to tie my name to an account number.  A trip to the bank is cheaper and less time consuming than dealing with the results of identity theft.

I have a separate account that I give to my tenants and they go to my bank and deposit.  All my rents are due on the 1st so on the 2nd I move all the money into my "primary" account so this account will have close to a 0 balance most of the time.  My banker recommended that I do this so I've done this for the last couple years.

This is what I did pre-Buildium. It worked well most of the time.

PunkStash

  • 5 O'Clock Shadow
  • *
  • Posts: 4
Re: How to accept credit card payments on rentals?
« Reply #38 on: August 29, 2013, 07:36:05 PM »
Our tenants at one of our rentals pays us using www.popmoney.com.  It takes a few days to clear but works well.

z4cth3p4c

  • 5 O'Clock Shadow
  • *
  • Posts: 11
Re: How to accept credit card payments on rentals?
« Reply #39 on: September 22, 2013, 06:05:23 PM »
I have been considering dwolla or buildium. Buildium looks pretty cool because of all the other services it offers. Anyone tried both and recommend one over the other. seems like dwolla has a  landlord tool that makes things easier but the cost is similar.
« Last Edit: October 09, 2013, 03:39:50 PM by z4cth3p4c »

tryan

  • 5 O'Clock Shadow
  • *
  • Posts: 75
Re: How to accept credit card payments on rentals?
« Reply #40 on: September 27, 2013, 09:05:25 AM »
I've used paypal quite a bit for the vacation rental ... nice to be able to book'em last minute.  And with the recent law change I can have them pay the fee.

With the long term tennies 3 of them do direct deposit into a business account.  2 make deposits using the account number the third is an auto-draft on the 1st of the month.  I don't worry about them having the account number since the loot is moved pretty quickly and there is no "reserve credit" on the account.  Any large "raid" on the account would simply bounce (I would then close the account and open another).

AlmostIndependent

  • Pencil Stache
  • ****
  • Posts: 521
  • Age: 39
  • Location: Anchorage, AK
Re: How to accept credit card payments on rentals?
« Reply #41 on: September 27, 2013, 10:06:52 AM »
Any large "raid" on the account would simply bounce (I would then close the account and open another).

People are pretty limited as to what they can do with your account number. Even on the off chance that they got some of your money the bank would cover it since it would be fraud of one sort or another.

Dendrite

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Re: How to accept credit card payments on rentals?
« Reply #42 on: October 05, 2013, 05:45:32 PM »
We use Amazon Payments to collect rent from our tenants. They let you transfer up to $1000/month using a credit card with no fees for the sender or receiver.

z4cth3p4c

  • 5 O'Clock Shadow
  • *
  • Posts: 11
Re: How to accept credit card payments on rentals?
« Reply #43 on: October 08, 2013, 05:49:11 PM »
I like buildium but what I do not like is that you have to have a business checking account to use electronic payments feature. I just went through a process that lasted two months switching over my bank account to a credit union that offers really good interest rates, higher chance of qualifying for a loan, and low late fees. But the bank does not offer business loans or business checking accounts. I have been told that it usually costs around 15$  a month to have a business checking account and I do not want to switch my banks due to the really great features I currently have on my personal account. But it kind of sounds like a hassle if I open up two accounts at separate banks and then transfer the money. Dwolla does not seem to have features that are similiar unless you purchase the 19 dollar a month landlord tool box and it still is not equivalent to buildium. Anyone know of any other service out there that sends automatic emails for payment notice, the ability to automatically bill them every month, automatically add late fees, and accept electronic payment to personal accounts, where a tenant can log in see there balance and pay via credit card or debit card?
« Last Edit: October 09, 2013, 06:36:33 PM by z4cth3p4c »

SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 758
Re: How to accept credit card payments on rentals?
« Reply #44 on: October 10, 2013, 09:27:50 AM »
We use Amazon Payments to collect rent from our tenants. They let you transfer up to $1000/month using a credit card with no fees for the sender or receiver.

Dendrite, can you point me to how/where this is explained? My search found a 2.9% fee minimum.

z4cth3p4c

  • 5 O'Clock Shadow
  • *
  • Posts: 11
Re: How to accept credit card payments on rentals?
« Reply #45 on: October 10, 2013, 01:50:03 PM »
After quite a bit of searching and testing I ended up going with this company.

Rentshare.com

Tenants sign up and pay transfer fees, they get email reminders when there payment is due and late. They have automatic account deposit to personal accounts for landlords. They accept credit cards, debit cards and bank transfers.

Did not go with dwolla because I wanted to make sure there were email reminders stuff of that sort, will let you guys know how this service works out.

Not alot of landlord involvement, no tax software like buildium but its a free service aside from the 2.95% charge to tenants for card fees.


arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28286
  • Age: -998
  • Location: Seattle, WA
Re: How to accept credit card payments on rentals?
« Reply #46 on: October 10, 2013, 06:38:51 PM »
Not alot of landlord involvement, no tax software like buildium but its a free service aside from the 2.95% charge to tenants for card fees.

Sure, but that $29.50 (on a 1000 rent) could be extra rent money in your pocket, rather than that company's...
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

z4cth3p4c

  • 5 O'Clock Shadow
  • *
  • Posts: 11
Re: How to accept credit card payments on rentals?
« Reply #47 on: October 10, 2013, 06:56:14 PM »
it charges the tenant 2.95% for credit cards or 1.95$ for bank transfer. If they do not like it I guess they could give me cash, or I could lower rent to compensate the only thing that's going to beat that is dwolla and it does not send automatic email reminders when they do not pay their rent, I don't think.
« Last Edit: October 10, 2013, 06:58:02 PM by z4cth3p4c »

SEAKSR

  • Stubble
  • **
  • Posts: 124
  • Age: 37
  • Location: Rainy Alaska
  • Great day for water landings!
Re: How to accept credit card payments on rentals?
« Reply #48 on: October 12, 2013, 12:17:02 PM »
I've been a renter for the past 13 years. I have paid rent in cash, with money orders, with deposits at a credit union, and by bill pay. I don't honk I would ever pay with a credit card. Too many ways to get in trouble doing so.

pl28

  • 5 O'Clock Shadow
  • *
  • Posts: 32
  • Location: Richardson (Dallas), Texas
Re: How to accept credit card payments on rentals?
« Reply #49 on: October 24, 2013, 11:55:34 PM »
As for rent payment, I use Chase Quickpay. Only one party needs to have account with Chase.. and I just type in the email address and how much to send and its all done.

No fees and not much hassle, really enjoy it.