Can Accepting Rent On A Credit Card Be An Upside For Property Owners?

When Governor Murphy signed a law on January 4th requiring landlords and property managers to accept credit cards as a form of payment from their tenants, there was collective apprehension from thousands of New Jersey property owners. Until this new legislation, the vast majority of property owners did not accept credit cards, preferring cash, automatic bank account withdrawals and money orders over plastic. Despite the efficiencies of credit cards, the perceived downsides did not outweigh that upside for most.  

Yet, the pandemic has put many residential and commercial renters in difficult financial circumstances. It has also given property owners their own set of challenges. Their tenants are suddenly struggling to pay rent – income needed to earn a living, pay vendors and maintain and upkeep buildings. Property owners who have historically pushed back on accepting credit cards as a form of payment, point to three primary reasons. Let’s look at how today’s credit card processing solutions are overcoming their concerns.  

Concern 1: Transaction Fees are Too High – Select merchant processors, like OTM Payments, offer a new program that allows property owners to accept credit card transactions and pass the transaction fees over to the tenant. This is called a surcharge program and it is fully compliant with state regulations and card brand sanctioned. Using a ‘smart’ terminal or web-based processing portal, our technology automatically applies the transaction fee to every credit card payment. Property managers keep 100% of the rent payment.

 Concern 2: It Takes Too Long to Receive My Money – When batched out and settled at the correct time (typically 7:00pm or 8:00pm), the previously mentioned surcharge platform offers next day funding on credit card transactions. In most instances, this is speedier than the 1-2 days it may take a personal check to clear and the same turnaround time as money orders and cashier’s checks.

 Concern 3: Tenants Will Push Back on Absorbing the Fees – Today, cardholders have every incentive to make purchases using a credit card, earning everything from cash back to rewards to points and miles that can be used for vacation. There are a lot of advantages for renters to put this monthly nut on the card and quite often, those benefits outweigh absorbing the fee. Additionally, many renters, especially in New Jersey, continue to face challenges in paying rent due to the pandemic, whether from a decrease in income or revenue. Offering an alternative option for payment is welcome for those who may be cash-strapped for a period of time.

OTM Payments’ industry experts manage the registration with the card brand, which is essential for total compliance, and the application process is simple and quick. There are no long-term contracts and no cancellation fees. Since the program is available for processing on a terminal, virtual terminal and web-based platforms, property owners have flexibility. To learn more or to get started, reach out to family-owned and operated OTM Payments at 732.230.7700 or sales@onthemarkpayments.com.

 

Read More Information About COVID-19

Renters Have 2 Weeks To Apply For Aid

Renters Have 2 Weeks To Apply For AidGreat interview with POA Past President Derek Reed, Esq. of Ehrlich Petriello Gudin Plaza and Reed P.C. discussing the approaching deadline.  NJ Renters Have 2 Weeks To Apply For Rental Aid As Eviction Moratorium Sunsets | WNYC...

read more

Eviction Moratorium Update

Eviction Moratorium UpdateOn August 5, 2021, New Jersey’s Governor signed NJ S.B. 3691/A.B. 5685 (2021), which will officially end New Jersey’s Eviction Moratorium in waves based on income level beginning August 31, 2021. After August 31, 2021, landlords may evict...

read more

NJ’s Eviction Prevention Program

NJ's Eviction Prevention Program  New Jersey’s Eviction Prevention Program will pay up to two years of rent arrears and future rent, as well as utility assistance, for low-, moderate-, and middle-income households that have experienced an economic impact due to...

read more

Read more News & Views.

Flood Risk Notification

Flood Risk NotificationFlood risks in New Jersey are growing due to the effects of climate change. Coastal and inland areas may experience significant flooding now and in the near future, including in places that were not previously known to flood. For example, by...

October 11th “Current Market Analysis”

https://clipchamp.com/watch/7BkN3zUAUZo

2024 Board of Directors

It is our honor to put forth the 2024 Board of Directors.  These members of the POA have shown commitment to the association and our mission. Please join us in welcoming them to the Board.  Executive Board President Kevin Taub, Marcus & Millichap Vice President...

DCA 2022 Rent Control Update

The information in this survey is only as current as the published municipal Codes of Ordinances as of 2022.  Consult the Rent Control Board for your town for accurate and up to date information and rates.Rent_Control_Survey.xlsx (live.com)

Case Management Conferences Cease as of September 1, 2023

On July 18, 2023, the Supreme Court issued an Order refining some of the Landlord Tenant reforms that it authorized in 2021. We will highlight the major changes below:  1.      Effective September 1, 2023. Mandatory Case...

News & Views January 2023

  Features   Energy Market Report   Division of Civil Rights Announces a Crackdown On Violations Of The Fair Chance In Housing Act   A New Law In Effect Requiring Owners To Maintain Liability Insurance   New Year Brings Familiar Challenges For...

ASC 842 Lease Accounting For Tenants and Landlords

ASC 842 Lease Accounting For Tenants and Landlords  of WithumThe new lease accounting standards under ASC 842 were effective for private companies with a calendar year-end beginning January 1, 2022. These new standards require companies to record substantially...

2022 Payroll Tax Reminders

2022 Payroll Tax RemindersYear-end payroll reporting for 2022 is right around the corner.  To assist you in preparing the items your payroll provider will need to complete your payroll tax returns, we have provided an overview of the most significant reporting...

Scroll other News & Views Posts.