We are in the process of changing our rent payment policy to 'electronic funds' only.

We are in the process of changing our rent payment policy to 'electronic funds' only. (paying via resident portal or with WIPS/MoneyGram program) Has anyone else fully converted to this and if so, how does your lease read? Do you say no personal checks or money orders in the lease agreement? Do you ever make exceptions?

Our lease reads just that. No checks or money orders accepted. Payment made thru your tenant portal. The only exceptions we make are for multiple return transactions. Get a money order and figure out what's with your bank.

And we still accept checks for subsidy as here in the middle of nowhere it's paid by check instead of ach.

Yes and was very successful. It took about 3 months to fully convert. Zero exceptions for money orders. WIPS only.
When peeps would show up with checks ... we'd help them set up online payments right then. Have them submit payment online and hand their check back to them.
Within 2 months, we were 100% collected by the 5th and went on to be 100% collected by the 3rd every month for over three years!

how do they pay a pro-rated amount through WIPS if they are on NTV? We’re having issues with this so we’ve been making exceptions with money orders...

Felicia Valle I believe in Yardi you have to end the schedules charges so it only posts a pro-rated amount on the first.

Danielle Champagne Noel okay, thought of that...but do you still do that for residents who are breaking their lease?

Felicia Valle you can reach out to Yardi and they can set your charges to only charge the prorated rent on someone’s last month.

Felicia Valle ... if it were me, I'd charge thru the end of the month. But then again, I'm in Texas and utilize the TAA Lease!

Clarification .... for those not meeting their full lease terms.
All other NTVs, end the charges on the expected move out date. However, you're stuck with adjustments if they holdover.

We did several years ago, but you need to check with your attorney to make sure you have your legal bases covered. Some states and cities have different laws about limiting payment processes. As always just be smart and ask.

Sounds like another apartment screwing over their tenants again for their own convenience...

Paul Murany our convenience directly affects how quickly we can help them in other areas. I process about 400 checks per month, most all within the same week. For that week, I'm constantly on my computer confirming balance due amounts, scanning checks, writing receipts, and refusing payments written incorrectly.
That time I'm also having to process move out walks and FASs which are equally time sensitive. My residents would also like me to be able to get their packages without waiting, answer their questions without waiting, and put in their work orders without waiting. My prospects would like to view an apartment without waiting, have their questions about answered without waiting, be quoted on several apartments, and for me to assist them through every step of the application process.
Residents can pay online without a service fee, or they can pay the fee for an eMoney Order as they would have to pay for a regular money order.
It's not that I don't care, it's that I want to be able to help them every week of the month, including the week that rent is due.

Really, you're complaining about your job description? How about the people that don't have checking accounts? Or elderly people who don't know how to pay online and will never remember even if you show it to them.

Paul Murany we are fully electronic and as far as the elderly, we helped set up their portal and set them up with automatic payments. We had no complaints and we have 836 units.

There's pro's and con's to everything going electronic... personally I'm against it, I'm old school and think it's less personal to have everything online and I think it's scary anyone could steal someones personal info these days apply, sign a lease, and pay without even knowing that's really whos living in the apt. As an example I could easily rent an apartment 100% online in my moms name (we joke about it all the time) and make an excuse to leave the apt onlocked with the keys on the counter for when I arrive... that's just nuts to me. My opinion leases should be signed in person with ID and all money certified funds. I see major issues in the future.

We set them up immediately for auto drafted payments. And if they have social security they have a checking account. We have over 600 units in one city and they were never given any other option in our other location and it was never an issue

We were funding our bank in cash (they never had to purchase cash as we brought in enough) and it was too big of a liability. It took some time but now we have 100% compliance except with the county.

same. I process a lot of money orders but then again those are the people that I know have no checking accounts. It is so time consuming to scan money orders through the system!! Rent week ..Of course our office is offsite from all properties so I don’t ever deal with packages but I deal with the phones and everything else in addition to deposits. That’s why I wait till the end of the day when the phones slow down so I don’t make any mistakes

I have a lot of residents with no checking accounts who pay by money order. Very time consuming. If they have checks I help them set up their online portal..but I on average deposit dozens and dozens of money orders...these are my paycheck to paycheck ones...its a pain but I do it..I cant make them get a checking account if they don’t qualify

Deborah Kay Volker can I give you a 1000 likes!! Everyone that is 100 % electronic is asking for trouble at some point. I dont even do check payments for applications. In person only, money orders only until after move in! I want to see you and confirm you are who you say you are. I've been around over 40 years and I've seen it all. Call me old fashioned. I dont care. I like seeing my residents every month, taking the time to chat, see what's up. I have a resident portal, but most of my residents still pay in person.

I’m curious why the shade being thrown here? The convenience is for the resident. If they can pay their rent from the app they don’t have to go into the office or drop a check off at the office. Additionally it limits liability for the office in having at times hundreds of thousand of dollars in money orders alone in the office. Additionally I’d far rather my team spending their time interacting with the residents and enhancing the customer experience as opposed to being pulled down with admin work that can be automated. This is really a win win for all concerned.

Deborah Kay Volker I feel the same way. It’s harder now that we never see our residents. I don’t want to get a Luxor room bc it allows at least a little personal involvement with out residents.

Paul Murany you are right on. But I would not argue the issue. Their actions are rationalized to meet their financial goals.
No shame in that.
Yet their erosion of customer focus is our gain.

depends on how you perceive it. As stated by some, freeing up that time to handle other tasks improves customer relations.

i agree it “depends”. It depends on your demographics and region.
But the “time” issue is what I mean by rationalizing. In my market, Limiting forms of payment is hugely inconvenient for many, regardless of how much more “time” you may have for tenants.
It is also the type of behavior and policy that leads to tenant groups pushing for legislation.
If they want to push for 100% online that is fine. But I suggest do not eliminate other options.
(Btw- having a dissenting opinion is not trolling- attacking it is)

Juan Carlos Suarez no, trolling is trying to create discord and get people irritated. Pointing it out limits their ability to do just that. If you haven't noticed, he hasn't defended his comments, but rather made another snide comment at someone else. As for going 100% online, change sucks. Always has, but with more and more things going digital, it was inevitable. Ultimately the time factor benefits the Landlord more than the tenant, but honestly the goals and intentions of landlords rarely match the goals and intentions of the tenants. That's why we have tenant protections. But it doesn't mean that their ultimate financial goal results in the erosion of our customer service. We can be there to show them how to use online, get them set up, and be there for support.

Deborah Kay Volker I can appreciate your sentiment. But I also remind my father that he is handing someone a check with his account and routing number. It's no different than handing someone your credit card. Of course, I trust the people I give my information to. I'm not saying online is always safe, just it's interesting that we forget that checks can be stolen too.

We still accept in office payment but we charge a $5.00 fee for those.

Libby Sharma we started with that and increased it each time they brought one in.

We have many rural locations..no WIPPS within 20 plus miles, most are paying by money order..concerned when we can’t offer a convenient WIPPS location. Have you been able to encourage local retailers to enroll in WIPPS?

We are 100% electronic pay and so far it hasn't been an issue. 99% of residents do have some sort of bank account because many employers require direct deposit. For those that don't we can provide them with a code and they can pay at Wal-Mart or other retailers with cash. Now there are times when the billing is wrong and we can send a link with the correct amount while their account is being corrected. In my opinion having this as being the only option to pay does many things....it places the responsibility on the resident to make sure their payment is done on time...no more well I couldn't get to the office before you closed or I was out of town etc. It also removes the error of a payment being posted to the wrong account and sending a notice to vacate due to non payment to a resident that actually did pay and also keeps payments from being possibly lost or stolen.

Watch your local legislature. City of Seattle has made it mandatory to have a no fee, non electronic option for rent payments.

I did it with PayLease and couldn’t be happier. They can do an ACH through the portal or CashPay at Walmart or several other places. I’ve got a couple of holdouts still bringing money orders and checks... they are the exception. Their old lease said to bring a check or money order by, so I have to honor that, but it changes with a renewal. Also, I’ve got some immigrants (Mexican and Asian) who’s English skills aren’t 100% there, so I get a smile, a nod... and a check. I let it go. Mostly because I don’t see fully getting rid of our scanner, because I still require certified funds for move in.

You need to make some exceptions with WIPS. From what I hear from my residents that some places can’t process the payment although it is accurate in Yardi