Each week, I speak to several accounting, collections and lease administration professionals in the property management and commercial real estate space. In all of those conversations, there is one question that I will always be sure to ask: Do you accept credit card? The answer usually falls on the spectrum of a ‘yes, but…’ to a resounding ‘no’. Many landlords and property managers are weary of accepting credit card for one primary reason: It’s too expensive. Why pay transaction fees on credit cards when tenants pay via check or ACH? Both, in theory, low-cost methods to accept payment. I urge you to think differently. How much does it really cost you to process a check? Lockbox fees, bounced checks, chasing short payments, “checks in the mail” delays and labor intensive cash application are just the start. Many tenants want to pay with credit cards and by not accepting them, you Read More

I talk with commercial real estate (CRE) property accounting teams almost everyday. One complaint that I hear again and again: tenants regularly miss their rent. This may be surprisingly to most, but after a couple of years of hearing the same message day in and day and day out, I now understand why. CRE accounting teams just can’t continue to manage their collections process the same way they always have. A process that more often than not, involves a property manager knocking on the door. So how can property accounting teams start to think differently? Here are some insights on how to address this as an organization, how to begin to think about collections differently, and most importantly, to start getting paid on time. Communication is key, and not just at signing. Sign a lease, agree to the terms, and off we go. If only it were that simple. With Read More