Payment Processing

How tenants pay you, in plain English

Payment processing is how money moves from a tenant's card or bank account into yours. Every time a tenant pays rent, three things happen in the background: the bank verifies the money is there, your processor moves it, and your processor takes a small cut. The cut is usually a percent of the payment plus a few cents per transaction. The big decisions you'll make are which processor you use and how you set up autopay.

What "autopay" really means and why it matters

Autopay means a tenant gives you permission once, at move-in, to charge their card or bank account every month. After that, rent collects itself. The single highest-impact thing you can do for your cash flow is get as many tenants on autopay as possible.

Here's the trick most new owners miss: at lease signing, present autopay as the default. The tenant has to actively decline it. Facilities that flip this default see autopay enrollment jump from around 60 percent of tenants to 80 percent or more, and late payments drop in half. It's the same lease either way, just a different default.

Bank account (ACH) vs. credit card

Tenants can pay with a credit or debit card, or by ACH (which means directly from their checking account). Card fees are a percent of the payment, typically around 2.5 to 3 percent. ACH is a flat fee, usually 25 to 75 cents regardless of how much they pay. On a $200 monthly rent, ACH saves you about $5. Multiply by hundreds of tenants and it adds up. Offer both, but nudge tenants toward ACH if you can.

Does your management software include payment processing?

Most of the main self storage software platforms (storEDGE, Sitelink, Tenant Inc, Easy Storage Solutions) have their own built-in payment processor or a preferred partner. The advantage is convenience: payments post to the tenant's ledger automatically, late fees apply themselves, and you don't reconcile two systems. The disadvantage is the rates aren't always the best in the market. Once a year, get one outside quote so you know whether you're overpaying.

What to look for when picking a processor

Five practical things:

1. Does it connect to my management software? If yes, your work shrinks by hours per week. If no, walk away.
2. What's the effective rate? Ask for total monthly fees divided by total payments processed, not just the headline "1.9 percent" number. The real rate is usually higher once all the small fees are added up.
3. Do they handle PCI compliance? PCI is a set of rules around protecting card data. A modern processor handles this so you don't have to worry about it. If a vendor expects you to handle PCI yourself, find another vendor.
4. How do they handle chargebacks? A chargeback is when a tenant disputes a charge. It's rare in storage but it happens. You want a processor that helps you respond.
5. What's it like to switch later? Make sure you can leave without losing tenant payment information. Ask before you sign, not after.