Credit Cards On Rentals?
We have mostly low income rentals. Seems like no one has any money. I'm getting tired of all the excuses. I was curious if anyone has tried to take credit card payments for rent. It might not be worth it unless it is an automatic deduction on a certain day of the month that you and the tenant set up.
With the ease of credit cards, my tenants may have one. Just trying to think of ideas on getting the rent on the first so I have the money I need to pay the mortgages. We have 21 single family homes and 4- 4 plexes that all have been bought this year with no money out of pocket. We are working landlords - not rich people like the tenants always seem to believe.
Thanks for input.
Betsy
I have never used credit cards as an option. I have heard of one person who did. Seemed to work for him.
Paypal is another option. The transaction can pull direct from a checking account. I think the renter needs to 'push' the payment rather then the landlord pulling.
One idea that I used successfully was to set the rent a bit higher then I was expecting and then offer a discount if they got it to me BEFORE the 1st of each month. If they paid on or after the 1st they payed the full amount (no discount).
Screening is the best way to eliminate the issue. People who have verifiable credit and history pay better then folks who are really weak.
John
PS. Well done on building a large portfolio in a short time. Granted you are learning some things with 37 units all at the same time.
[addsig]
Credit cards work well in certain markets. It isn't terribly expensive to get set up as long as you sift through all the companies that charge you bs fees.
I've heard good things about this company:
http://www.merchantanywhere.com/index.htm
For another business I had I used:
http://www.npc.net/
I used this one because I had very low volume and I processed credit card payments over the phone. Not what you need here but it met my previous need.
GOOD LUCK
I appreciate the input. Trying to think of any and everything I can to get rent in on time.
Thanks,
Betsy