We’re in the business of helping landlords and tenants collect and pay rent online, simply and securely. Still, oftentimes we are met with excuses from landlords who are hesitant to accept digital payments. Here are some of the common reasons and our responses to them.
1- Paper checks have been working just fine.
That may be true, but rotary-dial phones were still working just fine too. The fact of the matter is that accepting digital payments provides convenience and safety to both you and your renters. Your tenant won’t have to worry about mailing a check in time to avoid a late fee, and you won’t be searching the mail every day wondering when your money is going to come in. With an online payment platform, you’ll get a notification each time a payment is made, your tenant will get a receipt, and the funds are deposited directly into your bank account within 2-5 days.
2- Checks are free; digital payments aren’t.
While there is no obvious upfront cost to accepting a paper check, you are spending a good deal of time processing it. The Bank of America estimates that the actual cost of taking a check is somewhere between $4 to $20 when you factor in processing time. You’ll spend time checking the mail or drop boxes, entering the checks into your accounting system, writing receipts, and depositing the check into your bank account. Rember that time is money, so spend it wisely.
3- I don’t want to pay for an expensive platform or membership.
Some payment platforms require a membership or a fee for each door you add. PayRent doesn’t require a contract or a membership. We only charge for payments processed on our platform. Landlords have the option to pay the ACH fees themselves or to split it with or pass it on to their tenants. ACH fees are charged at .25% of the rent amount with a cap at $5, and card payments are charged $.30 plus 3.5% of the rent amount.
4- I’m worried about accepting credit card payments.
Some landlords are concerned about the risk of a credit card payment dispute. However, we find that these disputes are pretty easy to settle with a signed lease agreement and proof of payment. PayRent is happy to work with landlords to provide them support and documentation in their chargeback cases. While only 10% of transactions on our website are card payments, we find that renters appreciate the flexibility it gives them.
5- Digital rent payments aren’t secure.
This statement can be true for some peer to peer platforms. If your tenant sends funds to the wrong person using Zelle or Venmo, those funds are not recoverable. However, landlord and property manager specific platforms guarantee that the funds go to the right account. We also use bank-level encryption so you won’t’ be at risk for fraud, and you’ll never have to share your sensitive bank information with your tenants.