Auto-Matic Payment Each Month!!???
Ok... I think I have seen topics that hint towards this, but it seems kinda unclear.
If this works than it takes alot of the risk off of my shoulders.
Can I require that the tenant attach my rent payment onto one of their credit cards so that the burdon of collecting is on the credit card company each month. If so can I do it so that it will be done automaticly each month for the term of the lease.
I figure I will have to pay a little for this service (if it exists) but it would be worth it to me.
Is their any problems that you forsee in doing this?
If its possible has anyone done it and how?
Well I think may have found what I was looking with a Co. called .......payment service network .....but does anyone have experience with using them .... (are they any good)
Especially with using their payment from the Payers Credit card directly to your Account.
This seems great to me but does anyone use it or another service like it??
Heck you can use paypal if you want. They charge around 2-3% if I remember correctly.
The downside of using any credit card is that the holder can do a chargeback. And they can do this several months after the charge. In my mind this is less secure than cash/check.
No, you can't require it. You can however, offer to accept credit card payments in lieu of cash if you are equipped to do so.
As a service, you can offer to directly debit the tenant's credit card on the first of each month for the rent amount. There will be authorization forms to obtain from the tenant. Contact VISA, MasterCard, and Discover for details on setting up your program.
very interesting thanks for your help
i started used the services of ****Must Reach Freshman Investor status before posting URL's*** draft the payments out of the tenants checking acct automatically every month and then deposit them to mine. works great.
Rich
There was an article about this in the times last week- I think sunday last week. It's an interesting idea, and it's smart for the consumer if the rent is significant.
I use direct monthly debits in my non real estate business and I find them to be great 75% of the time. A quarter of them are often declined or expired, etc... Anyways, see if you can find the article from the times, it was great.
One of my charming newly rich children just came by seems that some of the tenants who pay by card have had their payments declined. Now why is that? Is it because Santa has priority? Well that's one but there are others.
In any case I have suggested from my consulting status that they stop extending this service as the cards go bad. Once a decline from then on it is money orders or Cashiers checks.
Yes my children are learning that just because you have a few properties and you no longer have to Eat at Joes, there are a few little duties still involved.
These are Beverly Hills too.
I like not having to be concerned I can just play with containers and enjoy life.
Lucius
I've spent a considerable amount of time looking into payment service network (paymentservicenetwork.com). I like the interfaces, flexibility, and prices that they seem to offer. Haven't used them first hand yet, but I plan on doing so soon.
With them you can pay via website (yours), telephone, direct deposit, or ach and pay by check, credit card, and I believe money orders.
Has anyone ever tried to get the funds transfered directly from their paycheck from their employer??? That could be promising also.
What about being able to charge a CC if the payment automatically if the rent payment is not recieved by a certain date or if a check is bounced? Tell them that the CC company will charge them $15, but that will save them the $50 late fee (or whatever it is for you). Have them sign an agreement that says as much, and give you a CC number with authorization when they sign the lease agreement.
Potential downsides....Some credit cards may have lower limits. Others may be maxed out. As has been said, they can reverse the charges as well or may not have credit cards.