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Updated almost 2 years ago on . Most recent reply
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Poll: Do you accept partial payments?
I own a property management company in Baton Rouge, LA. We are in the process of transitioning over to AppFolio, and in the process we have decided to no longer accept partial rent payments and are instead requiring a single payment. This means roommates will now have to figure out on their own how to combine funds and make a single payment.
The reason we made the decision is we are running into issues where one tenant prepays and throws off accounting and makes it difficult to automatically track who has/has not paid in a particular house. Plus, for Buildium at least, there does not appear to be a way to allow individual roommate partial payments but not partial payments by late tenants, which muddy the water when it comes to late fees, eviction, etc.
This isn’t a big problem if you only have a few units and can mentally keep track, but it is not sustainable for a growing mgmt business.
I wanted to see what other managers are doing in the instance of roommates only wanting to pay their individual share as opposed to aggregating into a single payment for the unit.
If you do allow this, how do you keep accounting straight and automate your system for ensuring the other roommates pay on time in the event someone prepays?
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Quote from @Nathan McBride:
It's a personal choice. I allow partial payments, while many other managers do not.
How do I handle roommate payments? The same as any other partial payment. Everyone is jointly and severally liable, so if rent is not paid in full, then the entire lease is in default. If roommate A and B both pay and roommate C pays 75% of his share, they are all in default and they are all subject to eviction.
- Nathan Gesner
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