Forcing tenants to pay rent online

Developer · Member since 2009 · 45 posts · 4 votes

I was thinking of writing into my lease that tenants are required to pay rent through an online rent collection website. Can I legally require new tenants to pay rent online and that no checks/cash will be accepted?

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Joel OwensBusiness Member

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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes

14y

I remember before an investor was burned using pay rents online.

They had it where a tenant could pay and also could deposit money or wire money in.

What happened is the tenant sent in 300 instead of the 600 owed into the landlord's account.The tenant argued in court that the landlord accepted partial payment and was going to work with them on an arrangement.The judge sided with the tenant.

So the moral of the story if you are going to do this is only a set amount is allowed to be paid with no partials.If they try a partial it should reject the payment.

Of course you can work out a payment with them IF YOU want to but you want to control that and not the tenant.

On paying cash when I was 17 I was running low on cash.I went to the gas station at night and put about 11 in gas in the car.

I had the money in coins quarters,dimes,nickels and pennies.It wasn't rolled.The gas station employee refused the money and I told him he had to take it. He said he did not and I had to call someone to bring cash or was going to call Police.

I told him I will call Police for him and save him the trouble.The Police told him over the phone that the money is legal tender and he has to accept it.

He wasn't happy but took the money......

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Frank Mergendahl
Member since 2020 · 1 post · 1 vote
6y
You may want to check your state laws
in New York you can not demand that a tenant pay their rent electronically

https://codes.findlaw.com/ny/real-property-law/rpp-sect-235-g.html
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Jessica Leandre
New to Real Estate · NJ · Member since 2019 · 1 post · 0 votes
6y
In case anyone needed information for New Jersey, it was recently passed that it is now illegal to force electronic payments. Doing so will result in fines.
https://www.google.com/amp/s/w...

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Mark F.
Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes
6y
Originally posted by @Jessica Leandre:
In case anyone needed information for New Jersey, it was recently passed that it is now illegal to force electronic payments. Doing so will result in fines.
https://www.google.com/amp/s/w...
Ridiculous. I'm not surprised though with this state. I dont want tenants who can't pay someway electronically though. Thanks for posting that.

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Jill F.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
6y
I don't think you are required to accept cash if your lease specifies how tenants are to pay. The thing about online payments are charge backs. I like to have an alternative for when someone is a scammer or might be evicted. Buildium has a deal with pay near me that allows tenants can pay cash at 7-ll, CVS, or Ace Cash express for a fee of $3.99 and there are no charge backs.
With respect to the treasury requirements that you take cash, Since rent is paid in advance, I doubt you'd be considered a creditor by the treasury department, and the tenant would be in violation of the terms of the lease if he refused to pay as agreed. However, practically, with a m2m tenant you'd probably be wise to take the cash and then non-renew to avoid the entire eviction process. With a term lease tenant I'd get the money however I could and then not renew the term lease.
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