TurboTenant Declining Large Tenant Payment – Options?

Question

Looking for advice on a rent collection issue.

My tenant has a history of non-payments, but we recently signed a stipulation agreement. Under this, he owes a large balance to be paid on top of monthly rent.

I previously used a PM, but now I’m collecting directly. I set up payments through TurboTenant:

- First payment: $10,000- Then ~$1,200 monthly until November 2026

The tenant submitted the $10k payment, but after that TurboTenant reached out asking why it was so large. I provided the stipulation, but then they said:

"Due to the tenant's history of non-payment and the lack of history on our platform, we will be unable to accept payments from the renter for any payment amount."

Now the $10k payment is being returned.

I also considered these methods:

- Wire transfer – don’t want to share my bank info.
- Venmo / Zelle / PayPal – personal accounts aren’t really for recurring rent and I’ve heard it can raise issues, while business accounts have high fees.
- Cashier’s check – possibly good for the initial $10k chunk, but not ideal for recurring monthly payments.

Questions:

- What options do I have to collect these payments now?
- Will other rent collection platforms likely give me the same problem?
- How do others handle large one-time catch-up payments combined with ongoing rent?

Thanks in advance for sharing your experiences.

Wesley W. · Answer

Why not do away with this third party vendor?

Each multifamily building I have has its own bank account. It's written into the lease that tenants must deposit their rents into that particular account (either by online bank transfer or by walking in a check/cash); I do not collect rents directly, nor would I if anyone asked. Systems don't work if there are any exceptions. Each tenant living in a building has their own unique rent amount, so even if they do not leave a notation with the rent payment, I know whom paid the rent based on the amount alone. I get an email alert each time a deposit is made.

I prefer not to use any third-party vendors (Zelle, etc.) because firstly, that creates another link in the chain that can break down between the tenant's deposit and my bank account (or, create capricious limitations and hurdles like the one you are experiencing). There is an occasional thread on BP where the vendor has a system crash of technical glitch and transfers are delayed. In a perfect situation, the payment will still be delayed (even if by hours) using this additional system.

And secondly, many of these vendors have "clawback" provisions where, in their terms of service, you give them permission to go back into your account - even weeks after the fact - and reverse a deposit that was made by your tenant.

My system is simple, allows for tenants to pay through multiple means, and does not cost me anything extra. I suggest this as your solution.

William Whitley · Answer

I'm not sure what bookkeeping software you use, but QBO has a payments feature built in where you can collect on invoices using credit card or ACH Bank draft, and it deposits it right into your bank account. There's a normal transaction fee of perhaps 3% or so, but I use it for charging all of my clients. Then I simply match the transaction in the bank feed with the invoice. There are options for recurring invoices to charge automatically every month as well.

I'm sure there are other viable options out there as well.

I hope that helps.

I'm sure there are other viable options out there as well.

I hope that helps.

TurboTenant Declining Large Tenant Payment – Options?

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