Late fee for e.transfer rents?

Martin1968

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#2
You should have a clause in your lease contract dealing with nsf and late payment of rent. For example nsf fee $50.00 and a 'per day' late fee at your discretion. It would be up to you as a landlord to determine when you want to enforce the late fee, for example when it occurs on a regular basis you might want to charge. When you have otherwise good tenants you might want to cut them some slack, for example when they notify you they will be late, you can give them till the 5th without charge. (I value my tenants and just because someone is late paying rent occasionally doesn't make them a bad tenant).

On a different note, I don't allow tenants to pay by e-transfer. To me it's the same as telling your tenants to 'bring you the cash' on the first of the month. What if they don't? You now have to chase them, and they can hide at their convenience by ignoring messages, calls, visits etc. It puts the stress on you as a landlord.
There are some other different ways of collecting rent, but for me personally I accept PAD, or PD cheques in series of 12 (1 yr lease) followed by series of 6 pd. About 40% of my tenants are on PAD.
PD cheques can bounce, as well as PAD transfers may not show up due to NSF however at all times you as a landlord are in charge, NSF fees are at tenants expense.
I only allow an email transfer when a cheque has bounced or a PAD transfer did not come thru.
It's worked well for me, very selden that I have to deal with late/nsf/non payment which I think has to do with the fact that tenants know the rent will come out on the first of the month.

Hope this helps. If you need the exact wording of what you need to put in clause in your lease send me a PM.
 
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Martin1968

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#5
As far as I know ALL banks should, but I do recall having seen some messages on this forum about some banks giving clients a hard time. Personally I have never had that problem.

It's your tenant that has to supply you with a PAD form from their bank (or print of online) preferably stamped and then you can have your bank set it up. Most experienced tellers know how.
 

kfort

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#6
It's your tenant that has to supply you with a PAD form from their bank
My experience has been opposite this. Bank X does not accept a form from bank Y. If YOU bank at RBC, get the RBC form and put tenant info on it. If you bring a cibc form into RBC they can’t act on it. Again, my experience. And it is actually a credit union I use ..


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Martin1968

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#7
Never had that problem. Tenants supply me with PAD, having had many of the national banks' PAD forms and banking with Alberta Treasure Branches myself no problem at all.

Over the years, only one time I had trouble was with an unexperienced teller that wanted to have a date stamp on the tenants form. She said she couldn't do it without. I knew from previous experiences that it obviously wasn't required as I have had many without a date stamp, but I choose not to argue, took the form back, and went to another ATB location in town and had it set up without teller asking to have date stamp on it.

It's been a smooth ride, my preference of collecting rent, however pd cheques work perfect too.
 
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kfort

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#8
Another example of customer service not knowing how to service a customer I guess. I’ve also done the go to another branch thing, but because some of them don’t even know what a PAD is. Apparently what I assumed was my rugged good looks actually makes me look like a shady character in the service reps eyes!


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angelapeng

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#9
Great idea to collect rent on PAD. I thought years ago about this method, but never collected rent this way. How does it work? Do we go ask our bank about the PAD form, then send to the tenants for them to fill out their info.? Thanks.
 

adriano

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#10
I take e transfers and it works great. No excuses for banks being closed or coundnt make it to the bank and its cash. Why wouldn't you take cash? Chequer can bounce and etransfer don't.
Also it was said that they can not pay there rent . Well if they don't have the money in the bank then it doesn't matter how they pay does it? This becomes about the quality of the tenant then.
I always charge late fees and nsf charges . Which is explained to them on move in and in the lee agreement. Just my thoughts
 

Martin1968

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#11
Great idea to collect rent on PAD. I thought years ago about this method, but never collected rent this way. How does it work? Do we go ask our bank about the PAD form, then send to the tenants for them to fill out their info.? Thanks.
Only experience I have is where tenants supply you with PAD from their bank. Never had it it the other way around.
 

Martin1968

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#12
I take e transfers and it works great. No excuses for banks being closed or coundnt make it to the bank and its cash. Why wouldn't you take cash? Chequer can bounce and etransfer don't.
Also it was said that they can not pay there rent . Well if they don't have the money in the bank then it doesn't matter how they pay does it? This becomes about the quality of the tenant then.
I always charge late fees and nsf charges . Which is explained to them on move in and in the lee agreement. Just my thoughts
Excellent. Stick with e-transfers if that works for you.
 

happylandlord

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Sep 8, 2013
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#13
Update...big green bank does not allow new PAD set ups via personal accounts. Small business offers etf service for a monthly fee. Sticking to receiving e.transfers and now with auto deposit feature, even easier!

happy_landord