Dropping TenantCloud due to increase in fees. Who do you use?

Question

Sadly we're moving away from TenantCloud as they are now going to be charging $1.25 per ACH transfer. Since we have dozens of tenants, this is not going to go well. We've already informed the tenants of the fees, and many are pretty pissed. I understand CC fees, but ACH fees are not being received very well.

Why do you guys use?

Nathan Gesner · Answer

Greg, ACH payments are typically free if the Tenant sets it up from their bank to yours. If you use an outside service, you have to pay for that software. There was a time when ATM withdrawals where free. Then they were $1. Then $3. Now $5. Nothing stays free forever.

Nathan Gesner · Answer

ACH fees are pretty common. Is it really worth your time/effort to switch software over this?

Personally, I eat the ACH fee because I want to make it easy for my tenants to pay rent every month. I have almost 300 renters paying via ACH and it's worth every penny. As a Landlord, can't you afford to eat $1.25 a month in exchange for the comfort of knowing payments are on time? The cost of mailing a payment via check is $0.60 plus the time it takes to deposit it in the bank. ACH is cheaper, easier, and faster.

Justin Gabriel · Answer

I'm with Nathan -- I'd pay a little more to reduce friction in rent collection.

And to Kris' point -- if I'm math'ing correctly:

$1,200 avg rent * 300 units = $360,000 mo gross rent

$375 mo ACH fees / $360,000 mo gross rent = 0.001% of gross rents

Jessie Lang · Answer

Majority of PM software are charging an ACH fee now, and those that aren't yet won't be far behind. It's the world we live in. Not worth the headache of switching.

Kris L. · Answer

It is on the surface, but wouldn't that still be around 0.1% of the gross rents?

Patrick Drury · Answer

Account ClosedIf you have over 50 doors I would recommend looking into Appfolio.

Margo Fairchild · Answer

Account Closed there will certainly be the tenants who aren't thrilled with the change in cost. Maybe grandfather those tenants in and eat the cost. Then for any new tenants who fill in after those grandfathered tenants leave and for any new rentals, make it apparent up from that the cost could be up to $2/mo (to allow for room for another increase). You'll have much less push back when they're aware of it upfront.

Currently, our ACH fee is $2 for tenants AND owners. We include it in the PMA and when explained that it's similar to any CC processing fee they'd pay, it typically makes sense to most reasonable people.

you posted 5 months ago...any updates on your decision?

Justin Gabriel · Answer

Account Closed What were they charging before per ACH transfer?

Donna Sommers · Answer

Bronco, just wanted to add that if you are looking for a way to cover costs for your tenants you can do it in TC as well, so you will be responsible for the transaction fees. Or leave the fees to your tenants, the same way as it is in those PM software you have listed.

Phillip Austin · Answer

Look into Buildium! They don't have ACH fees.

Dropping TenantCloud due to increase in fees. Who do you use?

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