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PayPal For Rent? - Landlord Forum thread 331578

PayPal For Rent? by Anonymous on March 1, 2015 @21:52

                              
Many of my tenants have been having problems with their bank's online billpay. Checks aren't getting to me on time.

I have been considering using PayPal for rent payments.

Any thoughts? Thanks.
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Re: PayPal For Rent? by WIlford on March 1, 2015 @22:49 [ Reply ]
Without getting into a long explanation, accepting Pay Pal or other online service to collect rent is not a good idea.
Re: PayPal For Rent? by Anonymous on March 1, 2015 @23:18 [ Reply ]
For one thing PayPal is going to cost you over 3.5% of the rent for each transaction.
Re: PayPal For Rent? by Garry (Iowa) on March 1, 2015 @23:43 [ Reply ]
You said you have "many "tenants with the same problem. I can believe 1 bank may have a problem. But with "many" tenants, there are probably several banks between the "many' tenants. If that's the case, it's more likely some of your Ts are simply paying you late, and blaming it on the online banking to avoid paying you late fees.
Re: PayPal For Rent? by sandra on March 2, 2015 @00:17 [ Reply ]
I use erentpayment.com it has been great, I pay the $3 charge but you can charge that to the tenant or split it! the good thing is I do not have to deal with the late fees ,they can not pay rent if they do not pay late fees first . the bad size takes 3 to 5 days to get into your account. but overall i'm very happy!
Re: PayPal For Rent? by Katiekate (New York) on March 2, 2015 @09:25 [ Reply ]
I have been using bill pay from various banks for years. Years.
Never been a problem.

This is the 21st century of the "the checks in the mail" routine.

Tenants know the rent is due on the 1st. They need to make the payment such that it is mailed by the bank in time for a due date of the 1st. As an owner I have to do this for my mortgage payments, my property taxes, etc. I know it will cause me a late fee and/or a hit on my credit to get it wrong.

If the rent is arriving 3days late...tell those tenants to go back to their bill payer and set the schedule on the rent check to mail 3 days earlier. Duh. And make it stick by charging the late fee. This is totally in the control of the tenants

But..mostly, you are getting a line from you tenants.

And...why should you pay any percentage of your rent to anyone (PayPal, etc)?

Re: PayPal For Rent? by Anonymous on March 2, 2015 @10:37 [ Reply ]
A few of my tenants use Chase QuickPay which puts the funds on hold in the tenant's account, then emails me a notice that the funds are available and I sign in to accept the funds and direct them to my account (inside or outside Chase). Works great, no fee to landlord (or tenant either, I think). BOA has a similar program, and my credit union does the same. This is not the same as the bank writing a check and mailing it to me and so far it has never failed to deliver the notification and funds on time, as long as I respond to the email. Plus I can reject the payment if it's short or if I'm getting rid of the tenant.
Re: PayPal For Rent? by Kelly (il) on March 2, 2015 @13:26 [ Reply ]
new tenants?
Re: PayPal For Rent? by Anonymous on March 2, 2015 @21:59 [ Reply ]
The Clear Now service endorsed by the LPA takes a few days. You get the funds on the 5th of the month. That company must be making money on the float of these rent dollars.
Re: PayPal For Rent? by Anonymous on March 3, 2015 @02:17 [ Reply ]
Why don't you use the LPA's affiliated service: Clear Now? I started using it. They give you the first two months free. It is easy for tenants to enroll. It's easy for landlord also. They just don't give you the rent until the 5th of the month. They charge $14.95/month for 1 account, then only $2 for each additional tenant.
SIMPLE SOLUTION by P-Bone (NY and OH) on March 4, 2015 @07:51 [ Reply ]
If the bill pay amounts are not making it to you on time, it's not a matter of the bill pay system itself, instruct your tenants to schedule the bill payment for an earlier payment date. They should be familiar with the delays in the bill pay system and should appropriately schedule the payments a few days earlier to ensure they arrive timely. That is their responsibility.
Re: PayPal For Rent? by Lynn (Il) on March 4, 2015 @16:21 [ Reply ]
I use chase quickpay. I get a notice in my inbox that the payment is here. I choose to accept it or decline it. As soon as you accept it's in you bank account. Just like a money transfer. If the tenant doesn't bank at chase that's ok too. They still can set up an account and link it to the bank they use. It works wonderful so far.
Re: PayPal For Rent? by Jordan Sand (Colorado) on January 11, 2017 @17:17 [ Reply ]
PayPal is a horrible idea for rent collection. I read a recent article on it, and the main reasons are (1) clawback of rent ... I didn't know the tenant could do that and (2) giving the tenant control over payments ... doesn't help if you want to evict them. You can read more here.
http://resources.hemlane.com/venmo-paypal-direct-deposit-rent/

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