• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 50,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

Real Estate Paying Rent with Credit Cards

Discussion in 'Real Estate Investing' started by JScott, Jan 12, 2008.

  1. JScott
    Offline

    JScott Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

    Messages:
    3,856
    Likes Received:
    6,422
    Joined:
    Aug 24, 2007
    Rep Bank:
    $46,437
    I've never seen a landlord allow rent payments to be made with a credit card, but I could imagine some advantages:

    - More likely to get paid by those who don't manage money well;
    - Can automate the process to ensure you get paid on the 1st;
    - Can charge a premium to cover the CC processing fee and also make a profit.

    I imagine the big downside is handling disputes with the CC companies should the tenant choose to dispute the charge for some reason.

    Are there any other reasons why accepting credit cards as a landlord would be a bad idea?

    Are there any landlords who allow credit card payments?

    Thanks for any info...
     
  2. Jorge
    Offline

    Jorge Bronze Contributor

    Messages:
    583
    Likes Received:
    103
    Joined:
    Oct 5, 2007
    Location:
    Mendoza, Argentina
    Rep Bank:
    $252
  3. Jito
    Offline

    Jito New Contributor

    Messages:
    147
    Likes Received:
    8
    Joined:
    Dec 2, 2007
    Location:
    Bay Area
    Rep Bank:
    $46
    I know of one land lord in New Orleans that does this. Personally, I would love the option to pay my rent with Amex and keep racking up points...
     
  4. RDave
    Offline

    RDave PARKED Read Millionaire Fastlane

    Messages:
    7
    Likes Received:
    0
    Joined:
    Jan 8, 2008
    Rep Bank:
    $42
    i have had friends that have used this to collect with credit card and like it alot for the items you mentioned above not much to worry about ect...
    site below, its great if you have a 100 units no worries to collect but if you have less than 30 it's a tuff sell to pay b/c it's 14 to sign up an 2 dollars per unit.
    so good money maker for the guy that just collects don't have to worry about tenents.
    anyway here is the site.
    http://www.clearnow.com/
     
  5. yveskleinsky
    Offline

    yveskleinsky Bronze Contributor Speedway Pass

    Messages:
    2,233
    Likes Received:
    489
    Joined:
    Jul 26, 2007
    Rep Bank:
    $1,743
    I love the idea of charging rent on credit cards. If I were to get back into SFH, I would do this in a heartbeat. You increase you odds of getting paid to nearly 100%.
     
  6. GettingThere
    Offline

    GettingThere New Contributor

    Messages:
    179
    Likes Received:
    12
    Joined:
    Dec 3, 2007
    Location:
    Central Florida
    Rep Bank:
    $52
    This is a great idea. You get rent paid more consistently, and the tenant can help build their credit if it is a problem (for many, it is).
     
  7. hakrjak
    Offline

    hakrjak Bronze Contributor Read Millionaire Fastlane

    Messages:
    1,979
    Likes Received:
    140
    Joined:
    Sep 15, 2007
    Location:
    Colorado Springs
    Rep Bank:
    $167
    Could be a good strategy for dealing with high risk renters... Or a good fail-safe if someone misses their rent, you could require them to keep a valid CC on file with you.

    Cheers,

    - Hakrjak
     
  8. randallg99
    Offline

    randallg99 Bronze Contributor

    Messages:
    1,390
    Likes Received:
    177
    Joined:
    Aug 9, 2007
    Location:
    NJ
    Rep Bank:
    $169
    depending on the state you live in, you may be able to incorporate in the lease so that you can pass the credit card fees/charges onto the tenant.
     
  9. KyJoe
    Offline

    KyJoe New Contributor

    Messages:
    68
    Likes Received:
    15
    Joined:
    Aug 28, 2007
    Rep Bank:
    $44
    The charge backs are my fear with it.
     
  10. Adam
    Offline

    Adam New Contributor

    Messages:
    68
    Likes Received:
    15
    Joined:
    Aug 12, 2007
    Location:
    Minneapolis
    Rep Bank:
    $50
    KyJoe is right.

    If there is a dispute, you are now putting yourself at risk of the CC company deciding whether or not you get to keep your rent. I hated dealing with charge backs when I owned a retail front.

    Also, you can discount for cash, but can't upcharge for credit. It is against the vendor agreement for you to charge additional fees if someone uses credit cards.
     
  11. hakrjak
    Offline

    hakrjak Bronze Contributor Read Millionaire Fastlane

    Messages:
    1,979
    Likes Received:
    140
    Joined:
    Sep 15, 2007
    Location:
    Colorado Springs
    Rep Bank:
    $167
    As long as you get their authorization to charge in writing as part of the lease perhaps, I don't think you'd have a problem with defending against chargebacks.

    - Hakrjak:eusa_clap:
     

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page