Hemlane gives landlords and managers the flexibility to choose whether a payment must be paid in full or can be partially paid. Partial payments are commonly used in roommate situations or to give tenants a more flexible payment schedule throughout the month.
What Are Partial Payments?
Partial payments allow multiple payments to be made against a single request. In roommate situations, this allows each roommate to pay their portion of the rent independently. If partial payments are not allowed, only one payment for the full amount can be submitted.
Partial payments can also be used to offer flexible payment terms. For example, a tenant with a $1,000 rent request could pay $600 in the first week of the month and the remaining $400 before the next month’s rent is due.
How Do I Allow Tenants to Split or Pay Partial Rent?
When creating a payment request, you will be asked a series of questions about how you would like to configure payment options. By default, Hemlane allows partial payments. If you do not want to allow partial payments, check the box labeled “Do not allow partial payments” during the request setup.
What Are the Risks of Allowing Partial Payments?
Many professional managers require payments to be made in full. There are risks to be aware of when allowing partial payments:
- Inability to evict non-paying tenants - Accepting any payment, even as little as $1.00, can greatly complicate or prolong the eviction process. Some states require owners to restart the eviction process if any amount is accepted after filing. Allowing partial payments means giving up the ability to evict tenants who pay any portion of the total requested amount.
- Cash flow interruptions - Partial payments can cause delays in the accuracy and timeliness of your cash flow. Setting clear guidelines and expectations around payment deadlines, late fees, and return policies helps maintain a healthy landlord and tenant relationship.
For more information on rent collection, please view our blog “Venmo, PayPal, Zelle, Direct Deposit for Rent Collection”.
Will My Tenant Receive Receipts for Their Partial Payments?
Yes. When a tenant submits a partial payment, both Hemlane accounts will update to reflect the payment including the date paid and current status. This can be found within the Payments section of the transaction.
Tenants will also receive an email notification after each payment is submitted, as well as weekly reminder emails every Monday for any outstanding balance until it is paid in full.
Other Things to Keep in Mind
A payment cannot be made on a recurring rent request unless all previous rent transactions for that unit have been paid in full. If a late fee has been initiated, it must also be paid before the rent payment can be submitted.
Hemlane automatically directs incoming rent payments toward the oldest past-due balance first, preventing any attempts by a tenant to designate funds toward a specific bill or time period.
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