Do you give tenants a choice in payment options?

Question

I've been researching the different online payment methods (erentpayment, sparkrent, etc) and the other methods used to pay rent. Do you put in your lease these different options and LEAVE THEM AS OPTIONS to the tenant, do you let them choose the way and then it must remain that way, or do you specify exactly which way a tenant must pay? 
 
I was thinking it may get old if one month you received an online payment, the next month a payment sent to a P.O. Box, the next month something else....never knowing where/how the  money is being sent.

Basically, how much freedom do you give when it comes to them choosing the payment options?

Dawn Anastasi · Answer

I am very flexible about payment methods and types.

I offer the following payment methods:
a) Drop it off personally
b) Mail it in
c) Use online bill pay through their bank

I offer the following payment types:
a) Cash - must be given to me personally
b) Personal check - unless they have had an NSF bounce back
c) Money order - this is what most of my tenants pay in
d) Cashier's check

The payment types I don't take:
a) Credit cards
b) Excuses
c) IOUs

Robert Steele · Answer

They pay by credit card again :)

Kyle J. · Answer

I give them the option of either mailing me the payment or depositing it directly into my business account.  Although they have the option of either, most typically do it one way or the other (as opposed to changing back and forth).

I've considered adding an online payment option too (like the Intuit Payment Network), but I haven't been convinced to do that since the current options I have are working pretty well for me.  Plus, some of my tenants don't even have bank accounts, internet, and/or email.

Josh Sterling · Answer

In the past all tenants had to make the deposit into a bank account each month. This has worked well. About 2 months ago I started using paysimple, pretty easy setup and they can give you a page to put up on your website. So far it has been great, 25% of our tenants have decided to use the online payment system instead of going to the bank.
     There are a lot of options to generate reports and invoicing if needed, cost is reasonable, $1.00 per ach transaction and $14/month flat fee. Credit card fees are higher (I think about 3.5%) but that is also an option.

Doss Mann · Answer

I give them preprinted deposit slips for one of my business accounts. I don't want to drive to the bank and wait in line, fill out slips, get excuses of mail delays or holidays or do any more than check the account on my phone to see that it's paid. Then i just transfer the funds online to a separate account at my personal bank. The  tenant can drive their car to the bank, wait in line and make the deposit.

My business account  scans the actual slip, receipt and check. This is great for saving the images into a desktop folder and not having to scan Multiple checks or receipts. They get a receipt and I get instant notification time stamped already in digital format.

Also, I don't want tenants coming to my house, or try to schedule a meeting or rearrange my schedule because theirs didn't work out.

My business account has online invoicing but It requires a login profile from the tenant and none have used it so I don't send them anymore. The deposit slips work great.

Jodi Slocum · Answer

We only have 1.5 tenants(1 property is my mother in law's that we manage),  but we give the choice of depositing it into our account, paying online at Williampaid or mailing it to our P.O. Box.

As long as it gets here and doesn't bounce, I don't care how I get it.

As far as I know, WilliamPaid has an option of credit card payments and from how I read it, I think the fee is passed on to the tenants, but I haven't had anyone take us up on the online payments yet so I am not positive.

Jodi

Bill P. · Answer

Currently, I give them the option of either mailing me the payment to my PO Box, depositing it directly into my property account using specialized deposit tickets or paying through my online portal.

We are trying to move everybody to the autodebit process but some people simply do not have a checking account.

Robert Steele · Answer

Kyle J. Chad Ballard as I said I have not actually had a tenant use the option to pay by credit card so I don't know. I just have the ability to do that if they want it. I would only use this in the case they had no other means to pay because of the merchant fee.

I have thought about the charge back too. I think it would be pretty hard for them to dispute it when I have a signed and dated authorization form. I guess the trick to preventing a charge back would be to use a separate account for rent payments via credit cards and drain it immediately.

If any of my tenants ever hit the skids and pay by CC I'll let you know.

Chad Ballard · Answer

Robert Steele, what service do you use to process the CC payments?  How long until you actually receive the funds?  Also have you had any issues with the tenant disputing the charge after the fact?

I have gone back and forth if I should offer the CC option I would be curious about your experience with it.

Kyle J. · Answer

I don't accept credit cards, but for those who do (Mike Franco, Robert Steele, or anyone else)......have you ever had an issue with a chargeback?  Just wondering because I know it's fairly easy to dispute a charge and have the credit card company reverse it.  I could see a disgruntled tenant trying that if they knew they were eventually going to be kicked out.

Do you give tenants a choice in payment options?

Most Popular Reply