To start, it is important to consider that most property managers prefer that payments are made electronically. This saves time and virtually eliminates the possibility of “human error” in comparison to payments being delivered to the office.
However, one problem with electronic payments (e-checks, credit cards or debit cards) is the length of time it takes to learn that a payment is being returned. In that interim, the system may “think” that funds are available allowing bills and distributions to be paid.
But if the payment “bounces” after the fact, your Owner funds will probably be negative which puts the property manager in a commingling situation… which is NEVER a good thing. Did you know that tenants can make electronic payments with cash? No bank account is required! Give the tenant a PaySlip.
A PaySlip provides a unique QR code for the tenant to use to pay open charges on their ledger. The same code can be used month after month, as long as the tenant is in the same property. This option is available to ALL tenants, not just the ones who’ve had payment challenges in the past.
The tenant pays with cash at any 7-Eleven, CVS Pharmacy or Ace Check Cash Express with the code. The payment will post to their ledger within minutes. Funds usually take a couple of days to post to your bank account.
Note: PaySlips do not restrict partial payments, but they do have maximum payment restrictions in any 24 hour period.
The property manager can also disable the ability for a tenant to make online payments without restricting the other features available (i.e. submitting work orders, document review, etc.) through their portal.
To do this, uncheck the “Allow Online Payments” option on the tenant page. This way you’ll know that once funds are available in your bank account, they’re not going to bounce.Some property management companies’ will keep the tenant in an “Evict Status” and have them pay with certified funds for the duration of their remaining lease. Keeping them in evict status ensures no partial payments are made online.
What's your situation? Do you have experience with NSF payments from tenants? Do you have another method that you use to resolve these types of issues? We’d love to hear from you! In the meantime, please keep in mind that APM Help is always here for the Property Management community.
We care about property managers and want everyone to have clean books. Reach our for a free 30-minute consultation today!