Automatic Rent Payments
by Electronic Check or Credit Card

This is a commonly asked question and there are several answers. First some landlords are able to set up direct payment through their bank. Not all banks provide this service, but some do. For this method, payments are set up by signing an authorization form. Most often, there will not be an online option for paying rent unless the landlord’s bank provides one.

Second, your landlord or property manager can set up an account with a payment processor to provide this payment service. Some use PayPal and others use a service like ours. Most good programs provide authorization forms and have an online payment option which gives you added convenience. Look for the greatest flexibility in a program that allows single rent payments as well as recurring payments. Then you can schedule all your rent payments in a single authorization.

The last thing to be aware of is possible fees involved including convenience fees and non sufficient funds (NSF) fees. If you pay by electronic check (e-check) and you don’t have enough funds in your account on the date of your scheduled payment, your bank will charge you an overdraft fee.  The Phoenix-Hecht Blue Book of Bank Prices™ reports the average price for a bank overdraft in 2008-2009 is $39.93. In addition, the originating financial institution trying to collect rent payment for your landlord will also charge you an NSF fee according to the amount that is stated in your payment authorization form or terms and conditions.

Convenience fees are variable and determined by your landlord. Direct payment is not free in most cases. Credit card companies charge anywhere from 2.19% or higher, plus another 0.3% for rewards cards. An e-check payment is much less and normally starts around 35¢. We have seen fees as high as $2.20 per e-check transaction. Your landlord has to decide whether they want to absorb the cost of direct payment or pass some or all of the fees on to you for offering this convenience.

Now that you understand the basics of direct payment, we invite you to talk to your landlord about using our direct payment program for paying your rent. We provide all the services mentioned above and offer your landlord some of the lowest costs in the direct payment industry.

When looking for an online rent payment program, it should allow you to schedule automatic rent payments for the term of your lease agreement. A convenient rent payment solution allows you to pay by electronic check from your bank account (e-check), or by credit card. There should be a secure online payment form that allows you to make payments from any computer with internet access. This gives you flexibility especially when you travel.

Another important feature for an automatic rent payment program is that you receive a receipt for your payments. You should receive an e-mailed receipt whenever a scheduled rent payment takes place. Your rent payments will also be recorded on your monthly bank statement or credit card statement depending on how you pay.

Can I pay my rent through a rent payment program if my landlord is not signed up? The answer to this is, “No.” The reason is because funds have to be delivered through a payment processor that your landlord has chosen. You need to talk to your landlord about whether they have automatic rent payment set up, then find out how to use it. As a convenience, your landlord may have a payment authorization form ready for you to sign with your lease agreement.

Are there convenience fees for using automatic rent payment? Some landlords don’t charge any extra fees and others do. We have seen fees as high as 3% of your payment for using a credit card and $2.20 for payment by e-check. Talk to your landlord and find out if there are any convenience fees in their automatic rent payment program.

If your landlord is not set up for automatic rent payment, we invite you to have them talk with us. We provide all the services mentioned above. Fees are determined by your landlord. Some don’t charge anything for using the program, others may charge up to 40¢ for e-checks (less than the cost of a postage stamp) or up to 2.5% of payment for credit cards.