Stop Nickel & Diming Tenants

[Stuart Udis]

I use RentRedi to collect rent, and ACH payments come with a $1 transaction fee. Whenever I load new leases, I reduce the rent by $1 and absorb the fee. Truthfully never really put much thought into, just something I began doing a few years ago. The reaction is always the same, tenants genuinely appreciate the gesture. Mind you, most of these tenants are paying between $2,000-$3,000 for 2 to 3 bedroom units so the $1 is inconsequential to their financial wellbeing.

What’s interesting is how often this leads to conversations about their past landlords. Tenants tell me about lease prep fees deducted from security deposits, annual financial suitability reviews with an added fee, yearly tenant insurance checks with an added fee, pet registration fees (separate from pet rent or pet deposits), annual inspections charged to tenants and other small add-ons that feel like nickel & diming.

Are margins really so tight that landlords have to manufacture revenue through these junk fees? Isn’t goodwill derived from being a landlord tenants appreciate worth far more?

[Mike Dymski]

Dear resident, "Please pay me rent and I am going to charge you to pay me..."