Investor · Collingswood, NJ · Member since 2016 · 7 posts · 1 vote
Notice to all Landlords using or considering Apartments.com (previously Cozy):
I received notice today that one of my previous tenants (who moved out 6 months ago with an unpaid balance of over $8K) disputed a payment received from Apartments.com from over a year ago. Apartments.com is requiring the funds be returned despite the scam and the already excessive balance due on the account from the previous tenant. I was not aware this could happen, especially a year later and with a prior tenant. Apartments.com shared the only potential recourse would be to reach out to the previous tenant and ask that they withdrawal their dispute or take them to court.
I am posting as a warning to all landlords to avoid the site. This may be a new scam on the rise and all should be cautious with third party management sites/apps.
Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
3y
I would definitely contact the issuing bank. Start as high up as possible, probably the branch head at least. Reversing a charge from a year ago doesn’t pass the smell test and they may want to examine the transaction from a teller fraud point of view as well as their own procedures. What kind of evidence was produced to justify this? The process of reversal can be shockingly casual and at a very entry level employee level in person.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
3y
@Dave Bal so it is actually apartments.com or the tenant? Are they just refunding or are they asking you for documentation. I would think a lease would settle this dispute. I am not sure if you can press criminal charges for a bad check in this case. The transaction is basically an electronic check.
Investor · Collingswood, NJ · Member since 2016 · 7 posts · 1 vote
3y
Not asking for documentation, just letting me know they will be doing a payment reversal for the disputed amount. This is what I received from Apartments.com:
One of your renter's payments has been disputed
We want to let you know that one of your renters disputed, or reported as fraudulent, a past payment they made via Apartments.com. We’ve initiated a payment reversal as detailed under our Terms of Use. Here are the details of the payment:
$XXXX is being withdrawn from XXXXXXXXXXXXXX.
The disputed/reported payment was initially made by TENANT NAME on SPECIFIC 2022 DATE.
The payment ID was XXXXXXXX
When a payment is disputed or reported as fraudulent, we're required to process a payment reversal immediately. We understand that this can be frustrating, but want to make clear that this is an action that the renter initiated directly with their bank or card issuer, and we often have little or no information regarding the factual basis for the dispute or fraud report.
Please note that under our Terms of Use, you are required to maintain a balance in your account sufficient to cover any reversals. Consequently, pending completion of the associated debit transaction, you should not withdraw from your bank account any funds that are the subject of this reversal.
Here are some steps you can take now:
If you believe this was an error or misunderstanding on your renter's part, get in touch with them directly and have them withdraw or rescind the dispute or fraud report with their bank or card issuer. If the renter’s bank confirms that a dispute or fraud report has been rescinded or withdrawn, we will be able to return the funds to you via Apartments.com (which will happen according to our normal payout schedule following confirmation). Alternatively, your renter can simply initiate a new payment via Apartments.com.
If you believe your renter is breaching the terms of their lease agreement or that the dispute or fraud report is otherwise improper, you should pursue legal recourse outside of Apartments.com (in the same manner as if a renter had placed a stop-payment order on a physical rent check delivered to you). Suspected illegal activity should be reported to law enforcement.
Apartments.com is generally unable to intervene in disputes between renters and property managers. However, if you believe fraudulent or abusive activity is taking place via Apartments, or if you have questions, please let us know by replying to this email. We’ll get back to you right away.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
3y
Do they require you use them for payments? It’s been at least 7 years since I’ve accepted anything other than ACH bank drafts. They hit my bank on the first of the month, even on Sunday’s. They are non-reversible and the funds are instantly, and fully available.
Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
3y
This is pretty commonly known as possible. It's not even an apartments.com thing, its a legal thing linked to every electronic ach payment. No website has any way around it, and it is out of their hands. It is true that your only true recourse will be to sue the tenant. This is why tenant screening is so important.
Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
3y
I would definitely contact the issuing bank. Start as high up as possible, probably the branch head at least. Reversing a charge from a year ago doesn’t pass the smell test and they may want to examine the transaction from a teller fraud point of view as well as their own procedures. What kind of evidence was produced to justify this? The process of reversal can be shockingly casual and at a very entry level employee level in person.
Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes
3y
You're not really clear on what the original transaction was. Was it an ACH payment to you or did they pay by Credit Card. Each one has different rules to follow.
But either way, this is the risk we all take when using these types of services. Zillow, Innago, Tenant Cloud etc... all have the same risk. Any tenant can dispute the payment and when they claim fraud, it's even harder to stop.
So don't scream and howler that Apartments.com is screwing you over and the very fact you stated that you had no idea this could happen. That right there tells everyone that you didn't do any research on this issue.
Plus the fact that you allow the tenant to rack up over $8k is another problem you have. When a tenant is 1 day late on rent, you send a notice to pay or you will go to court. All pending on local laws. I'd say it time to hire a PM. Good Luck.
Do they require you use them for payments? It’s been at least 7 years since I’ve accepted anything other than ACH bank drafts. They hit my bank on the first of the month, even on Sunday’s. They are non-reversible and the funds are instantly, and fully available.
Bad news. ACH transactions are 100% reversible. Happens at my non-RE work all the time. I've had banks request well over a full years worth of monthly payments back. The good news is that if you have paperwork, the disputes are very winnable. I'm not positive, but I don't think I've ever lost a single ACH dispute in 20 years because I've always had signed back-up paperwork.