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Payment of Rent

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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Payment of Rent

Postby nycman » Tue Dec 06, 2022 1:56 pm

My building has a new management company and they are only offering an online portal for payment of rent. They allow payment with a credit card or eCheck. This is going to be a major issue for many of the tenants in the building, some are elderly, some only speak Spanish. My question is, are LLs required to accept a paper check for payment of rent?
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Re: Payment of Rent

Postby TenantNet » Tue Dec 06, 2022 2:40 pm

Yes, any form of legal tender is acceptable. The LL cannot force you to use one method or another, and they might also add a fee (could be up to 3%).

We do not like online portals like the one you describe (dealing with this now) as they are in control of the LL. Some banks have online payment systems or ACH (automated clearing house). Google that. You need the LL's cooperation as you will need their account no. and routing no.

My problem - and it depends on the bank - is that some do not provide a memo field, where one can designate what month a payment should be applied. This is VERY important. If you look at a regular paper check or M.O., they have a "memo field" or "earmark" where you can write "Rent for December 2022 and no other months." Case law usually upholds this as otherwise LLs might apply it to some other month, to a deposit, to a claimed repair or whatever.

I don't know enough about Zelle or Venmo, but I've heard there are problems.

You can still send a paper check or money order (with an earmark) to the LL. Make copies of what you send, keep the LL's bill (they might have a tear-off to be included in the envelope) and be sure to send it by either Certified Mail (more expensive) or by Certificate of Mailing (less expensive).
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Re: Payment of Rent

Postby BubbaJoe123 » Wed Dec 07, 2022 3:45 pm

nycman wrote:My building has a new management company and they are only offering an online portal for payment of rent. They allow payment with a credit card or eCheck. This is going to be a major issue for many of the tenants in the building, some are elderly, some only speak Spanish. My question is, are LLs required to accept a paper check for payment of rent?


Landlords can't require online payment of rent, or charge a fee for not paying online. Black letter law in NYS:

§ 235-g. Electronic billing and/or payment of rent. 1. A landlord shall not require a lessee or tenant to use an electronic billing and/or payment system as the only method for the payment of rent. A landlord shall not assess any fee or other charge for a lessee or tenant that chooses not to use an electronic billing and/or payment system.

2. Any agreement by a lessee or tenant of a dwelling waiving or modifying his or her rights as set forth in this section shall be void as contrary to public policy.


https://www.nysenate.gov/legislation/laws/RPP/235-G
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Re: Payment of Rent

Postby TenantNet » Wed Dec 07, 2022 4:21 pm

Thanks Bubba. But remember, if a tenant actually chooses to use the LL's payment system, you're likely to pay with a credit card, and from what I've seen, they may charge up to 3% service charge. If you're rent is $1,000, that's $30 and that can be a day or two of food. Plus those systems are not vendor neutral. If there's a problem, the vendor will defer to the LL. If a bank through ACH, the tenant might prevail in any dispute.
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Re: Payment of Rent

Postby BubbaJoe123 » Wed Dec 07, 2022 6:43 pm

TenantNet wrote:Thanks Bubba. But remember, if a tenant actually chooses to use the LL's payment system, you're likely to pay with a credit card, and from what I've seen, they may charge up to 3% service charge. If you're rent is $1,000, that's $30 and that can be a day or to of food. Plus those systems are not vendor neutral. If there's a problem, the vendor will defer to the LL. If a bank through ACH, the tenant might prevail in any dispute.


FWIW, all systems I've encountered offer the ability to pay via checking account with no fee, with some offering the additional option to pay with a credit card and pay a fee. Regardless, the option to pay online is always an option, not a requirement. If there's a cordial landlord/tenant relationship, it can be beneficial to both parties (tenant doesn't have to write a check every month and mail it, landlord doesn't have to deal with the hassle of processing checks), but it's 100% optional for the tenant.
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