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

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

Account Closed
Rental Property Investor · White Plains, NY · Member since 2018 · 348 posts · 86 votes

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?  

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Quote from @Account Closed:

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?  


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.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Account Closed:

    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?  


    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.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    3Reply
  • Kris L.
    San Antonio, TX · Member since 2019 · 930 posts · 836 votes
    4y
    Quote from @Account Closed:
    Quote from @Nathan Gesner:
    Quote from @Account Closed:

    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?  


    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.


    Yes.

    300 units x 1.25 = 375.00 per month or 4500.00  That's a lot of money to cover.

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

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  • Greg R.
    Investor · Dallas, TX · Member since 2016 · 887 posts · 1k+ votes
    4y

    CC fees, very common - but I've never heard of ACH fees. Even though the cost is a pain to deal with, it would be a much bigger head ache migrating to a different system. Sounds like you're just figuring this out, but this is a very common tactic amongst software/ SaaS developers. They hook you in with no or low prices then gradually increase knowing that the amount of work to migrate will far exceed the the impact of the cost increase. 

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  • Justin Gabriel
    Investor · CA - TN - FL · Member since 2022 · 19 posts · 17 votes
    4y

    @Account Closed What were they charging before per ACH transfer?

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Account Closed:

    Average rent is $1,200 a month. If $1 is more important than ensuring your tenants have a simple method of making payments on time, then you might be a penny pincher.

    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.

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  • Justin Gabriel
    Investor · CA - TN - FL · Member since 2022 · 19 posts · 17 votes
    4y

    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

    2Reply
  • Jessie Lang
    Rental Property Investor · Columbus OH · Member since 2022 · 6 posts · 3 votes
    4y

    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.

    1Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    4y

    A  tenant that gets pissed off at a landlord over a pass-through bank charge is probably going to be pita. Tell them to go whine at BofA or whatever payment processor your software uses and to let you know if they have any luck...

    0Reply
  • Bocondo Williams
    Property Manager · Central Virginia · Member since 2022 · 20 posts · 7 votes
    3y

    I think this discussion is important in term that most of us signed with TenantCloud for their low cost $40 a month, but now with ACH fee if you have 50 or more tenants it a adds up to hundreds of dollars per month, so why not use a feature rich software like Buldium which don't charge for incoming ACH. In my own research I found following PM software which don't charge for incoming ACH. Buildium, RentecDirect and TurboTenant. I like RentecDirect so far and thinking of switching to it.

    0Reply
  • Phillip AustinPro Member
    Property Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes
    3y

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

    0Reply
  • Donna Sommers
    Vendor · Austin, TX · Member since 2014 · 79 posts · 18 votes
    3y
    Quote from @Bocondo Williams:

    I think this discussion is important in term that most of us signed with TenantCloud for their low cost $40 a month, but now with ACH fee if you have 50 or more tenants it a adds up to hundreds of dollars per month, so why not use a feature rich software like Buldium which don't charge for incoming ACH. In my own research I found following PM software which don't charge for incoming ACH. Buildium, RentecDirect and TurboTenant. I like RentecDirect so far and thinking of switching to it.

    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.

    0Reply
  • Margo Fairchild
    Property Manager · Richmond, VA · Member since 2020 · 14 posts · 7 votes
    3y

    @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?

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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Account Closed
    If you have over 50 doors I would recommend looking into Appfolio. 

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