Thursday, August 30, 2012

Online Only Rent Payment?

I normally loath Democratic State Senator Ted Lieu, but I'm with him on this one. He's sponsored a bill that would make it illegal to require rent only be paid online.

It's the result of a landlord in Southern California who started requiring tenants to pay rent online only- no more checks, I guess. One older tenant there didn't feel comfortable with online payments, there being a number of security issues with online transactions.

Normally I'd say rental agreements should be between the tenant and the landlord. If someone moves in to a place and agrees to pay rent online, that's fine. If someone is already renting, though, I'd have to object to the landlord all of the sudden changing the deal.

I happen to be one that pays all my bills online but have to wonder why a landlord would even want to accept online payment? My personal experience is that it costs more to accept online payments, at least as a business, since banks take a percentage of it.

It might work if you just paid rent with Paypal and sent it to the landlord by name. I used to accept Paypal for my business until they figured out I was a business and started skimming 3% off the payment. I went back to the old fashioned way and it's actually easier.

Seems to me a landlord couldn't refuse a check if you showed up at their door to pay them, could they? Makes me wonder just why the landlord in question came up with the online payment idea and if there are any other details to the story we're missing?


At 3:50 PM, Blogger Denish Freps said...

This comment has been removed by a blog administrator.

At 3:06 PM, Blogger beachcomber said...

Checks can bounce. Is it possible that he wants to be sure a payment actually has financial backing? I know you can't use a debit card for more money than you have so maybe he's just tired of chasing down renters paying with rubber?

At 2:39 AM, Anonymous said...

The idea of rent payable online is good for a landlord. Sometimes there are such tenants who are not at all cooperative and this payment method is good in that case.


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