Forums » Running A Property Management Company

Is Online Rent Payment a good service?

    • 6 posts
    May 31, 2010 9:46 PM PDT

    Online eCheck (ACH) is getting more and more attention.   Renters can pay rent anywhere with an Internet connection, funds are then directly deposited into the owner's bank account.



    Accepting rent online will reduce the amount of paper in leasing offices, making rent collection more environmentally friendly.



    I personally like the idea, but is it a good service ?

    • 17 posts
    August 3, 2010 1:38 PM PDT

    As a property owner and landlord...definitely.... I hate checks...and snail mail. There's plenty of companies offering this type of service...so do compare services and check the fees involved.

    • 14 posts
    November 3, 2016 12:56 PM PDT

    I have no problem with e-checks but i know a lot of my tenants prefer paying with credit cards despite the fact that it's cheaper. Karen - I use rentigo - who do you use? 

    • 9 posts
    December 4, 2016 12:37 PM PST

    We haven't used that particular service at Rentex however I do like the idea. 

    One thing to check for is fees, there are usually transaction fees. 

    Most tenants in Auckland have online banking apps and use their mobiles to pay, incurring $0 fees. 

    Should you roll out a online payment system in your property management company website, perhaps you will want to pass on the fees so the tenant pays them. 

    • 2 posts
    December 15, 2016 4:22 PM PST

    Most property management software companies offer integrated online rent payment solutions for renters. Either via credit card or ACH (which is essentially the same as an echeck). The credit card (or debit) fees tend to be a little high for a lot of renters, so property managers defintely benefit from offering both options. While 3% might not seem like a lot of an upcharge, if you rent is $2,500 that's  an unncessary $75 a renter would have to pay. ACH transactions are typically free to the renter. Love this idea of on time rent payments with online solutions. 

    • 8 posts
    January 24, 2017 5:15 AM PST

     

    I think that online payments are very convenient.  ACH systems usually cost $.50 – $3.00 per transaction. It could take 4-7 days to process, but you can be sure that you will get you payments on time. 

    Besides, you don’t need to meet tenant when they have to pay rent. It saves you a lot of time. Accepting cash as a rent payment is never a good idea. Cash is too easily lost, leaves no paper trail in the event that your tenant disappear. What I like about online payments that they offer simplify dispute resolution and create an audit trail. 

     


    This post was edited by Gary Wardwell at January 24, 2017 5:15 AM PST
    • 3 posts
    August 23, 2017 2:41 AM PDT

    Good discussion. Thanks for the insights!