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by Kris Rudeegraap

Myth #1 – Small Landlords Cannot Benefit from E-Payments

Cash flow is very important for smaller landlords and e-payments can help landlords collect rent faster and more efficiently. Also, small landlords can benefit from the robust reporting features and compete against the larger properties that offer and attract renters by accepting credit cards and e-checks.

Myth #2 – E-Payments are Too Expensive

This is probably the biggest myth associated with electronic payments. Landlords can elect to pass on the credit card or e-check fees to the resident at no cost to the landlord. If the landlord wants to offer e-payments as an amenity to attract residents and absorb the fees as operating costs, e-checks cost as little as $1/$.50 each and check scanning is less than $0.50 per check. E-Payments can also save money in terms of time spent processing checks “ from collecting, endorsing, copying, reconciling, and then finally driving to the bank to deposit the paper checks. E-payments can do all of this automatically!

Myth #3 – My Residents like Paying by Paper Check

Many renters have created a habit out of paying rent with a paper check only because theyve never had the option to pay with a credit card or e-check. Generation Y, the next segment of renters that have grown up in the digital age, expect online payment options and, in many cases, dont even own a checkbook! E-payments will help you attract the next generation of renters to your properties.

Myth #4 – E-Payments are Unsecure

E-payment providers like RentPayment use the same technology as banks and comply with strict regulations. Payment providers are required to pass rigorous audits and have yearly reviews to ensure compliance with Visa and MasterCard rules. E-payments generally have less fraud than paper checks, and are processed through a nationwide network which is reliable and processes billions of dollars annually with the highest levels of security in the world!

Myth #5 – E-Payments are Too Hard to Understand

Many individuals already pay the majority of their bills online such as credit card and utility bills, and desire the same convenience for paying rent. E-payment services give renters the option to pay with their credit card, debit card, or input their bank account and routing number (located on any check) and easily make a payment online instantly. RentPayment also provides landlords with 25+ different reports to make the reconciliation process a breeze.

If you would like to read more about e-payments, click here to review a recent white paper on electronic rent payments.

See Behavioral Economics: The Science of Paying Rent.

This article was written by Kris Rudeegraap, Marketing Coordinator for RentPayment. For more information visit www.RentPayment.com or email [email protected] or call 1-866-289-5977 ext 212.

American Apartment Owners Association offers discounts on products and services for landlords related to your real estate investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at joinaaoa.

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  • small

    I would love to have my tenants pay via e-payments. Since I am also a renter, I set up an account to try it out. After providing my credit card information, I discovered that in order to make a payment, there is a $30 convenience fee. After reading this article I tried using e-checking. It does not appear to work since I have both a credit card and a checking account in their system yet, on the payment page it does not allow selection of either account. Until they fix the website, I will not direct my tenants to it.

  • small

    After contacting e-payments, this was their response:

    The only option for payment is by phone with a credit card. There is an additional charge of $39.95 also.

    On Thu, Jun 17, 2010 at 1:03 AM, small wrote:

    Hello,

    There are images of credit cards but nothing on the page is selectable except contacting customer service via phone. The website is not functional for making payments via credit card or e-check as I have signed up for both. Please advise.

    Thank you,

  • Hello,

    In response to the 2 comments, the convenience fee is determined by multiple factors. One, the setup type chosen by the property management company. Two, if the property management company elects to absorb the fees as operating costs. Three, if the renter is paying by credit card versus e-check. Four, which channel the renter is paying on (i.e. online. by phone, in-person, etc). Five, the average rent payment for the property.

    If you have further question about your specific properties please contact RentPayment and we are happy to answer any further questions for you.

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