How to accept credit card payments on rentals?

[beltim]

(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.)

Wow, really? I'd never rent from someone who required payment in cash. I've never seen this before, either - I've always just written a check to the landlord. Is requiring paying by cash common? That seems super sketchy to me, but maybe it's a regional difference.

[arebelspy]

(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.)

Wow, really? I'd never rent from someone who required payment in cash. I've never seen this before, either - I've always just written a check to the landlord. Is requiring paying by cash common? That seems super sketchy to me, but maybe it's a regional difference.

Believe it or not, bank tellers accept checks, too.  Or money orders, or cashier's checks, or most other forms of payments.  ;)

Further their deposit receipt from the teller is pretty darn safe, I'm not sure how it's "sketchy" if they choose to deposit cash instead of a check.

YMMV, obviously.  :)

[beltim]

(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.)

Wow, really? I'd never rent from someone who required payment in cash. I've never seen this before, either - I've always just written a check to the landlord. Is requiring paying by cash common? That seems super sketchy to me, but maybe it's a regional difference.

Believe it or not, bank tellers accept checks, too.  Or money orders, or cashier's checks, or most other forms of payments.  ;)

Further their deposit receipt from the teller is pretty darn safe, I'm not sure how it's "sketchy" if they choose to deposit cash instead of a check.

YMMV, obviously.  :)

 Well, sure - but you wrote cash, not checks, money orders, or cashiers checks. 

[arebelspy]

Well, sure - but you wrote cash, not checks, money orders, or cashiers checks.

I didn't specify I only take cash (how would I even instruct the bank teller to not take anything but that?), that is one form of payment that is made.

Swap in "their rent" if it makes you happy.

[beltim]

Well, sure - but you wrote cash, not checks, money orders, or cashiers checks.

I didn't specify I only take cash (how would I even instruct the bank teller to not take anything but that?), that is one form of payment that is made.

Swap in "their rent" if it makes you happy.

It does.  I only use the word "cash" when I'm talking about bills, not coins or checks or credit cards.  You can see why I thought it was sketchy if you were, in fact, requiring cash. 

Anyway, you've answered my question.  Thanks!

[Kumiswati]

Wow, I don't think I will ever accept rent payment by credit card. It's just too risky. I feel I need to make sure my tenants have enough cash in the bank to pay me every month. I do accept payment by paypal and the tenants have to opt for 'personal' and 'friends and family' so I don't get charge with hefty paypal charges. That works quite well for me.

[DTSinWNY]

Take it from someone who has been fleeced . . . DO NOT TAKE CREDIT CARD PAYMENTS VIA PAYPAL!!!!!

Tenant made several payments via CC over paypal . . . then departed, and then disputed ALL of her charges with her credit card company, and Paypal reversed the payments . . leaving me holding the bad and being out 3-4 months worth of rent.   Makes me a bit sick even when I think of it now.  Good thing I believe in karma, and I believe that she will get hers some day!!!!

[Beaker]

Has anybody tried SparkRent? I haven't, but I'm considering it. From what I can tell it's the same thing as Intuit Payments under the covers. They do an ACH from the renter's account. The fee is $1 per payment, which seems pretty reasonable.

[SunshineGirl]

Holy crap! SparkRent seems like the answer!!

I might even give my current tenants a discount to incent them to use it, and then I could make it mandatory for all future tenants.

[Fireman]

I'm also interested in SparkRent.  It looks shit simple and for $1, the convenience is nice. 

My current renter had some issues in the past but for the last 12 months or so, has been Johnny on the spot and sends checks for several months in advance.  I happily hold the checks and deposit them sometime after the 1st. 

[Senstless]

I read a few articles on Dowalla https://www.dwolla.com/ a while ago, but havent actually used them yet. They only charge .25 for transactions over $10.

[parkette]

Out of curiosity, are those of you in the states able to use Interac email money transfers? I'm in Canada and I use it for most of our payments if I have an email address, and we require all of our tenants to use it to pay their rent.

I think depending on your bank it is either free or a small amount ($1?) that the transferrer pays. Beyond a bit of a learning curve for certain tenants, once it works it is so easy- we don't have to pick up cheques, and they don't have to get them to us. I just have to check my email to see if they've paid and to accept the money.

[vanvalks]

Holy crap! SparkRent seems like the answer!!

I might even give my current tenants a discount to incent them to use it, and then I could make it mandatory for all future tenants.

I'm also interested in SparkRent.  It looks shit simple and for $1, the convenience is nice. 

My current renter had some issues in the past but for the last 12 months or so, has been Johnny on the spot and sends checks for several months in advance.  I happily hold the checks and deposit them sometime after the 1st.

I'm thinking about trying out sparkrent. Did either of you (or anyone else seeing this) try it out? Any feedback on it?

[Fireman]

I'm thinking about trying out sparkrent. Did either of you (or anyone else seeing this) try it out? Any feedback on it?

I haven't because the current system is working.  When the lease comes up later this year, i'll approach the current tenant with the idea of online payments.  If I get a new tenant, i'll insist upon it.

[Kazak]

Holy crap! SparkRent seems like the answer!!

I might even give my current tenants a discount to incent them to use it, and then I could make it mandatory for all future tenants.

I have been using SparkRent for the past year or so. The fee is very reasonable, and it automatically sends 'upcoming' payment reminders, as well as a 'payment is due' notification.

My only issue is with the late fee setup. It only allows you to charge a one-time 'late fee' once the rent is a certain amount of days late. There is no way (as far as I can find) to create a fee schedule which increases the fee as the rent becomes more late. Because of this one issue, I've been looking into other options.

[Beaker]

Holy crap! SparkRent seems like the answer!!

I might even give my current tenants a discount to incent them to use it, and then I could make it mandatory for all future tenants.

I have been using SparkRent for the past year or so. The fee is very reasonable, and it automatically sends 'upcoming' payment reminders, as well as a 'payment is due' notification.

My only issue is with the late fee setup. It only allows you to charge a one-time 'late fee' once the rent is a certain amount of days late. There is no way (as far as I can find) to create a fee schedule which increases the fee as the rent becomes more late. Because of this one issue, I've been looking into other options.

I actually just finished setting up SparkRent and taking my first payments. It seems mostly good. My only real complaint is that there's no good way to accept a security deposit, though you can workaround that by adding it to the first month's rent.

[Bourbon]

This is an old thread.

We are using Cozy,  They get paid for the background checks but then do free ACH service, and have added the option to pay be credit card for a % fee to the tenant.  We tell all of our tenants not to use that, but they have in the past.

[SunshineGirl]

We ended up hiring a property management company and so no longer have to deal with that side of things.

[Enigma]

I use Buildium and also accept CC payments (eCheck/savings, MasterCard, VISA, Discover).  A friend of mine collects rent using the Venmo app which is becoming popular it would charge the renter the transaction fee of using a credit card.

Accepting credit cards has opened up the door for the renter because now they have extra avenue's to pay their rent.  Some like the points they earn as well....  As a landlord I am more than willing to add incentives for payments online.  To accept credit cards I am charged 2.7% ($13.50 per $500 standard rent) and the web portal keeps up with late fees which tends to almost break even.

Also collecting via credit cards is faster as the funds hit my account within a couple days.  A credit card can also be declined immediately if they do not put in the correct information.

[waltworks]

I use Dwolla for all kinds of stuff (personal settling-up with friends, payments from customers, rental payments, etc). Great setup, no fees, what's not to like?

I'd never take a credit card for rent payment. That's a terrible idea on several levels. I do CCs for the business and do it through square. They bend you over and extract 3-4%.

-Walt

[powskier]

I have opened a free checking account at one of my tenants banks in order to make it easy and free for them to transfer rent. All my tenants direct transfer to one of our bank accounts ( free checking) except one couple who walks to the bank and deposits cash in our account. I'd be leery of cc payments that could be reversed.

[BigRed]

We currently pay by ACH to the landlord's bank account.  I would never rent from a landlord that required me to do the busywork of going to the bank to deposit the rent or required a method of payment that required me to pay a fee (other than a stamp).  These are business costs and efforts that the person operating the business should pay (in my opinion, obviously).  Imposing theses costs on me as a renter would be an indication of a landlord that has qualities I don't want to deal with as a tenant.  Being a landlord often requires the willingness to pay maintenance costs and arrange repairs, and not being willing to do the regular work or accept the costs of accepting my payment would be a bad sign on this score.

[Goldielocks]

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?

Whatever happened to getting 12 post dated checks or cash dropped or handed to you?

Post dated cheques work great until they start to bounce, which triggers the notice process.