I read the following the other day..
In response to complaints from tenants that more and more landlords are requiring rental payments be made only online, California lawmakers are considering a bill that may dictate how landlords collect rent.
“A growing number of landlords are no longer accepting checks or money orders from tenants,” says Sen Ted Lieu. “Instead, they have begun to change rental agreements to require tenants – including the elderly, disabled and poor – to pay their rent online.”
The issue came to light late in 2011 when hundreds of tenants in apartment complexes in Los Angeles objected when the property-management group notified residents of a 300-unit complex that the only way they could soon pay rent was online.
Current law does not specify how rent is to be paid. The new bill revises the law to prohibit landlords from requiring online only rental payments.
So while I'm in absolute favor of adding payment options to tenants, taking payment options away is a big mistake. Here's some ideas on how to provide online payments successfully:
- Add it an an option, not a requirement.
- Add both online check as well as online credit card (with a fee). Some tenants would rather charge rent to a credit card for a fee than risk being delinquent.
- Add an incentive for online or automatic payments, such as a $10/mo discount.
- Provide a method a non computer savvy person can take advantage of it, such as an authorization form which the property manager processes online.
Being a landlord is not just collecting rent and taking care of repairs, it is a customer service position. Would a company dare think that removing payment options from their customers is going to increase customer satisfaction? Not likely, and nor should a property manager.
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Nathan is a member of Rentec Direct who provides property management software, tenant ach payment processing, and tenant credit and criminal reports for property managers and landlords.
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