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Pay rent via credit card

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  1. #11

    Join Date
    May 2019
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    17
    Quote Originally Posted by traineeinvestor:
    This tiny insignificant landlord would not accept any arrangement which leaves me short changed.
    This tiny insignificant tenant just wants his extra ~1.5% lunch money.. Easily covers McD meals for 2-3 weeks
    Anyways, I've sent an email to their CS to confirm things. If all looks good, maybe I'll try it next month.
    Rob2020 and vyral_143 like this.

  2. #12
    Quote Originally Posted by chuckster007:
    You could always do what the electrical shops that sell mobile phones etc do, they add 2-3% surcharge if the buyer or in your case renter uses credit card to pay so you will not be short changed
    In theory yes, but then things get messy at tax time.

  3. #13
    Quote Originally Posted by freeier:
    https://www.rentsmart.com.hk/eng/payrent/



    By using RentSmart, tenants can now pay with their credit cards, making it more convenient, flexible and rewarding at the same time. A happy paying tenant makes a happy landlord!

    After the tenant makes a payment, the funds will be automatically deposited into the landlord’s account within 5 working days, a SMS notification will also be sent to the landlord upon successful deposit of funds.

    RentSmart will not charge the landlord for this service. Rest assured that the amount paid by the tenant will be the amount deposited to the landlord. RentSmart also provides innovative rental management services to landlords in Hong Kong, click here to find out more.
    Interesting. So the landlord gets the agreed amount of rent with no deductions, fees etc taken out of it which if fine.

    But how does RentSmart make its money?

  4. #14

    Join Date
    Jan 2013
    Posts
    475

    Interesting... seems that the 0% commission is being called an incentive. Who knows when that will end. 5 day float, and also it's a partnership with unionpay, and I'm sure they are happy when there are renters who don't pay the full rent each month to make money on interest charges and late charges.

    Landlords get paid even if renter has no cash (up to credit card limit), renters get to earn points on their cards, and as long as they pay off their cards they're OK. I'm sure even in HK there are people who owe money on credit cards. Also it's a way to increase unionpay credit card usage volume. I'm sure they are peanuts compared to Visa and Master, and this is a new untapped segment.


  5. #15

    Join Date
    Nov 2005
    Location
    Cramped island
    Posts
    5,585

    beats me.. i think likely a tie up which Union pay will pay something, since they are working hard to increase its client base in this part of the world..

    from the app perspective, if they can run it like an advertisement for UP and doesn't incur any cost to themselves, then able to collect information of the landlords, they probably will do it since the cost is not high..

    its just like, we always ask ourselves, how Trivago makes money.. and yet the site is paying so much to the TV station to air their irritating advertisements!


  6. #16

    Join Date
    May 2019
    Posts
    17
    Quote Originally Posted by RMDNC:
    Whats the biz model here? Renter pays and in 5 days landlord gets the dough. Playing off float it seems. Also I would not use it as you don't know how secure their servers are. If they are hacked your credit card infor is gone.
    I'm honestly more concerned about the tenancy agreements, stamp duty, etc because that's requested by them.
    Reckon there should be some sort of customer protection for credit cards.

  7. #17

    Join Date
    Nov 2007
    Location
    Wanchai
    Posts
    5,063
    Quote Originally Posted by mrgoodkat:
    Looks like an innovative way for Mainland residents to get around the capital restrictions since they don't apply to UnionPay charges.
    Not sure this is still the case as Insurance premiums used to be paid by Unionpay but i don't think they can do this anymore?

  8. #18

    Join Date
    Jan 2013
    Posts
    475
    Quote Originally Posted by Trebor:
    Not sure this is still the case as Insurance premiums used to be paid by Unionpay but i don't think they can do this anymore?
    Yeah there's a cap I think of 10k a day, 100k a year. But that only applies to China Mainland issued cards. HK Unionpay shouldn't have this restriction. And I think this is for bank cards only. Credit cards not sure. They had put a limit on it and the insurance companies basically had their staff swiping the card many many times to add up to the total. I think they put a stop to that too.

  9. #19

    Join Date
    Jan 2010
    Posts
    6,452
    Quote Originally Posted by jack55:
    Yeah there's a cap I think of 10k a day, 100k a year. But that only applies to China Mainland issued cards. HK Unionpay shouldn't have this restriction. And I think this is for bank cards only. Credit cards not sure. They had put a limit on it and the insurance companies basically had their staff swiping the card many many times to add up to the total. I think they put a stop to that too.
    That limit is for cash withdrawals only

    https://news.worldcasinodirectory.co...ay-cards-52238

  10. #20

    Join Date
    Sep 2017
    Location
    Mid-Levels
    Posts
    126

    If I understand this:

    plan a) tenant pays rent via credit card, landlord receives full amount within 5 working days - no fees to either the tenant or landlord for processing this transaction. Most likely a promotional thing to get people to sign up.

    plan b) full service management company - tenant pays rent via cc, landlord receives rental balance net of fee (4.5%) to cover for all property management service that the company provides.

    plan c) full service management company with rent advance - tenant pays rent via cc (each month), landlord receives upfront full year rent net of fee (9.8%). Company manages the property for the landlord.

    This is innovative in parts. I currently pay 8% to a management company in the US to manage a property (rent collection, arranging maintenance, tenant move in move out inspection, etc). For an additional 1.8% i'd be happy to collect all rent upfront assuming that its the management company then bears the risk of tenant defaulting.


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