Property Management - Collecting Lease Payments

SafeGuard — Sat, 19 Feb 2022 15:13:52 GMT

I manage 60 rentals, so a credit card option sounds good. I keep 10% of the gross rent amount collected. Would I be paying 3.5% on the whole rent amount (35% of my income) to use this? I can absorb a small portion, but would need to put 3% back on the tenant. Does that work for other property managers?

Re: Property Management - Collecting Lease Payments

HC_Charlie — Sun, 20 Feb 2022 20:08:15 GMT

Hello @SafeGuard thanks for your post. Here's some more info about Square's fees, but I think that whatever you charge from the credit card is what your fee is based on....for example, if you charge a tenant's credit card for their rent of $1,000, then the fee that Square would take from that $1,000 would be 3.5%....or WHATEVER your particular rate is. Note that if you process a large amount per year you could be able to have a custom rate set by Square.

I am not a tax professional but I would check with your State or local government about legal issues on passing along credit card fees. Another option would be to offer a discount for cash/check payments to avoid paying the CC fees. I hope this helps answer your question on this matter. Thanks for being a part of the Square Community!

thread Property Management - Collecting Lease Payments in Archived Discussions (Read Only)

Property Management - Collecting Lease Payments

Re: Property Management - Collecting Lease Payments