Ray White Payment Gateway fee -- anyone use this system?

Does anyone else here use Ray White as their property manager and their tenants have to use the Ray White Payment Gateway system to pay their rent?

I recently had an email from a tenant complaining that she has been told to use this system to pay her rent and will be charged a fee of $1.65 each time she makes a payment.

I did some googling and found this on a Ray White site:
Rent must be paid weekly, fortnightly or monthly via Ray White Payment Gateway (telephone, internet, direct debit, BPay, Post Billpay), Centrepay or Money Order. [Please note charges apply for these methods of payment: $1.65 for Ray White Payment Gateway or 2.2% of the transaction fee if paid by Credit Card via Ray White Payment Gateway; $2.00 for BPay; $3.00 for Post BillPay; $0.99 for Centrepay; And from $4.00 for Money Order (prices quoted correct as at 1 April 2009).

The tenant emailed me saying:

I currently do an immediate internet transfer of rent into their account but now they want me to pay through the Ray White Payment Gateway which incurs a $1.65 fee every time I pay rent. That works out at $85.80 a year going into their pocket & out of mine for paying rent. I would assume that collection of rent is part of their management process.

I also don't think it's very fair that tenants are being asked to pay this fee but not sure whether i should offer to pay the fee or just hope the tenant accepts it.

Has anyone else had complaints from their tenants about this system?
Are there any alternative methods for tenants to pay their rent so they can avoid this fee?
 
Isn't this the same thing that Telstra got in trouble for a few months back - that is, charging a fee but the customers not having an alternative option available to pay without getting a fee?

I personally think it is a bit of a con and i would dispute it with them. They may say something like the external providers are charging them usage fees so they have to pass the fees back onto the customer. But i don't accept that. To me, it is a cost of running their business (such as phone, electricity, staff etc), so why can't their processes "absorb" these costs as well.

I don't have the figures in front of me, but i am guessing that Ray White would be saving money by having more people pay rent like this. Afterall, they won't have to have as many people collecting money over the counter and manually writing out receipts, anbd checking payments etc. So the logic is, if more people use electronic transfer methods to pay their rent, then Ray White would save on front desk labour.

The incoming rent would all be sorted and distributed electronically. I dare say that exception reports on incomes etc are generated so they will know who hasn't paid their rent. But if their IT guys are smart enough, automatic lettters will be generated and sent to those tenants that hadn't paid their rent by a due time. Eg, having a code/process saying "if rent not paid by due date, send chaseup letter to tenant". All this can be done automatically.

So the front office staff wouldn't even have to check the books for non payers. I wonder too, if they are relying on their landloards more for checking their statements to see if they are getting their payments.

So in the scheme of things, having electronic rent payment systems does offer the possibility of saving money for Ray White as their administrative workload will be saved. But instead of seeing this potential, they initiate fees to slug the renter.

Honestly, the banks have set a bad precedent for charging fees left right and centre for electronic systems/processes that save money. It now seems that other organisations are cashing in on collecting fees as well.

I think they should be "wearing" these costs instead of charging them separately. It is a process that reflects their operations strategy so in turn, they should be wearing it and not charging separatly for it.

But, as i said, they will just say that external providers are charging them for it so they must pass the fee onto their custoimers. same old same old.



g
 
I feel it is poor form. The Landlord pays a postage fee, which is now often referred to as "sundries" because there is no postage if the statements are sent via email. If they want to charge the tenant for electronic payments, how would they feel if we (Landlords collectively) told them that we would charge THEM a fee for electronic payments and statements?

Years ago we rented a place through LJ Hooker and they had a similar scheme. I refused to pay it, and they did have a payment option that didn't incur the fee, so that was the method I used.
 
Thanks guys, some good info in there.
I have emailed the tenant and asked her to ask Ray White for any alternative payment methods. If not, i'll try and put some pressure on them to waive the fee or else i might pay it myself as i don't think it's fair the tenant should lump it.
 
They should not be charging for direct payment through the Internet, that is a con as it doesn't cost them anything and will actually save them time. I won't be considering Ray White when I hire property managers in a few weeks. :rolleyes:
 
I actually work for Ray White.... Payment Gateway isn't a compulsary system. Payment Gateway is for tenants who wish to set up a direct debt payment from Ray Whites side, we have tenants who pay direct into the trust account, most of ours do.

It doesn't matter which real estate you give your property to manager, its the tenant who enter the property that decide the outcome when vacating. There will always be good and bad property managers, tenants, management. Remember a property manager is working best interest for the owner of the property.

If you think Ray White doesn't do a good job, why not manage the property privately? See how good you are at it.
 
I actually work for Ray White.... Payment Gateway isn't a compulsary system. Payment Gateway is for tenants who wish to set up a direct debt payment from Ray Whites side, we have tenants who pay direct into the trust account, most of ours do.

It doesn't matter which real estate you give your property to manager, its the tenant who enter the property that decide the outcome when vacating. There will always be good and bad property managers, tenants, management. Remember a property manager is working best interest for the owner of the property.

If you think Ray White doesn't do a good job, why not manage the property privately? See how good you are at it.


or just don’t put up with this attitude from property managers and take your business elsewhere.

I can guarantee that there are other agencies who will charge you less in commission and do a lot better job.
 
I actually work for Ray White.... Payment Gateway isn't a compulsary system. Payment Gateway is for tenants who wish to set up a direct debt payment from Ray Whites side, we have tenants who pay direct into the trust account, most of ours do.

It doesn't matter which real estate you give your property to manager, its the tenant who enter the property that decide the outcome when vacating. There will always be good and bad property managers, tenants, management. Remember a property manager is working best interest for the owner of the property.

If you think Ray White doesn't do a good job, why not manage the property privately? See how good you are at it.

Actually, like many on here, I do manage my own.

The first thign that came to mind when I read the OP was are we that desperate for extra ways to make m0oney cause the we enter businesses with no faith in the caore money making ways of the business or something ?
 
Everyone has their own opinion, and you obviously don't understand the the Payment Gateway System, maybe you should research the system before making your judgement.
 
Everyone has their own opinion, and you obviously don't understand the the Payment Gateway System, maybe you should research the system before making your judgement.

As a private landlord it would appear that I dont need to udnerstand the system. I can accept payemntyds ftropm my tentans simply, quickl;y & for free

But, perhaps, you can can explain the system to us then we can understand it and judge it a bit more failrly ??

I can't help but see it as an unecessary way of making extra many outside of the core responsibilities of the role - managing the property.
 
This happened to us a year ago when we almost rented a property from Raine and Horne.

After an inpection, we put in an inital deposit 1 week of rent to secure the property. A week later, we came to the office and about to sign the tenant agreement, the agent explained to us the ONLY payment option is through their payment gateway with similar fee $1+ for each transaction.
After 4 years of renting and dealing with multiple rental agent, I was shocked and that was actually the first time I learnt that we need to fork out extra $ to deposit money ?

So, I said I don't to rent with them and wanted my deposit back. Agent responded with his rude as hell attitude and guaranteed we wont get our deposit back.

I escalated the agent's rude behaviour to the head office as well as wrote an email demanding the deposit back otherwise we will take legal action. And got my deposit back and never want to deal with the real estate agent.
 
Everyone has their own opinion, and you obviously don't understand the the Payment Gateway System, maybe you should research the system before making your judgement.


No doubt it's better than sliced bread but ----- here are the latest charges as per their debit request form

Transaction Fees: When You access the Ray White Payment Gateway
services You agree to pay Us a non-refundable transaction fee. These
fees are currently:
• Credit Card fee - 2.20% (GST inclusive) of the amount paid to
Us by You; and
• Bank Account fee - $1.65 (GST inclusive); and
• BPAY fee - $2.00; and
• OTC fee - $3.00


Notice the otc fee (over the counter), does this mean that there is no option for paying your rent without incurring a transaction fee?

Also, what does the 'bank account fee' represent. Could not find an explanation. I can only assume that this fee would apply if the tenant does an internet transfer direct to the RE's bank account. If this is the case then they are not charged any external fee and the $1.50 is pure profit.

Cheers
 
No doubt it's better than sliced bread but ----- here are the latest charges as per their debit request form

Transaction Fees: When You access the Ray White Payment Gateway
services You agree to pay Us a non-refundable transaction fee. These
fees are currently:
• Credit Card fee - 2.20% (GST inclusive) of the amount paid to
Us by You; and
• Bank Account fee - $1.65 (GST inclusive); and
• BPAY fee - $2.00; and
• OTC fee - $3.00


Notice the otc fee (over the counter), does this mean that there is no option for paying your rent without incurring a transaction fee?

Also, what does the 'bank account fee' represent. Could not find an explanation. I can only assume that this fee would apply if the tenant does an internet transfer direct to the RE's bank account. If this is the case then they are not charged any external fee and the $1.50 is pure profit.

Cheers

Fck me!

I'm opening a deli and chargihng people $1 fee to buy the $2 daily newspaper

I'm finding it very difficult to think of another reason a company would do this besides greed and disrespect for the ir customers (I mean, they must think everyone is stupid that they dont know they are being bent over ).
 
Fck me!

I'm opening a deli and chargihng people $1 fee to buy the $2 daily newspaper

I'm finding it very difficult to think of another reason a company would do this besides greed and disrespect for the ir customers (I mean, they must think everyone is stupid that they dont know they are being bent over ).

i'm in if you're looking for a joint venture partner. there will be a fee for my involvement of course.

• OTC fee - $3.00
I presume this is over the counter. if I was a tenant I would be taking my rent down in five cent pieces, 5 minutes before closing and really make the agent work for their three bucks.
 
i'm in if you're looking for a joint venture partner. there will be a fee for my involvement of course.


I presume this is over the counter. if I was a tenant I would be taking my rent down in five cent pieces, 5 minutes before closing and really make the agent work for their three bucks.

Good call

Then the Ray WHite PM can log onto somersoft and compalin about how he/she has "such a bad tenant who knows his rights...."
 
It's a crock of ****, I REFUSE to pay it. I'll go to tribunal over the matter since it's not the cost to me, but the principle of the matter... it's a nice little money spinner for them - it doesn't matter whether I pay weekly or fortnightly (via bpay), I'm meant to pay an extra $2 for every week of rent haha... so 1000 tenants paying an extra $2/wk = $2000/wk in "payment" fees that goes straight into their pockets, absolute rubbish. That's what they charge the landlords a fee for the managing their property for, the burden isn't on me as a tenant to pay it.
 
Everyone has their own opinion, and you obviously don't understand the the Payment Gateway System, maybe you should research the system before making your judgement.

NFI. How to win friends and influence people...................especially on a forum dedicated to IP owners that are always evaluating their PMs performance even in QLD.

I elected not to previously use RW as a PM soley based on their previous "The Advantage Card" system and the negative feedback I uncovered while researching possible PMs, mainly relating to the fees and tenants payments not getting to owners accounts, that made me choose another PM.

Maybe that why they dumped it or maybe just renamed it.

I would rather have a happy tenant than loose one over $85 p.a. given I already pay my PM ~10% of my rental income to cover their costs and provide some profit.
 
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We rented through Ray White before we bought our current place and had to pay the $1.65 "bank account fee" for a bank transfer from our account- the rent payment wasn't direct debited but the $1.65 was. I thought it was a total crock as well but there wasn't another option. Will be interesting to see if it is actually enforceable!
 
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