It seems more and more tenants want to pay their rent with a credit card, but there are issues to consider from both the tenant’s and the landlord’s point of view.
For the tenant, there are some valid reasons for doing this, such as not having to worry about paying late, capitalizing on frequent flyer miles or other rewards programs, and being able to pay rent if the due date falls before payday. For the landlord, the main benefit is the rent is paid on a timely basis.
However, before allowing your tenant to pay with a credit card, there are a few things to consider.
First, if the tenant is allowed to pay directly into your account, he could potentially pay a partial payment. The Arizona Landlord Tenant Act states:
“…acceptance of rent, or any portion thereof, with knowledge of a default by tenant or acceptance of performance of the tenant that varied from the terms of the rental agreement or the rules or regulations subsequently adopted by the landlord constitutes a waiver of the right to terminate the rental agreement for that breach.”
If this were to happen, the landlord would have to wait until the next month to pursue an eviction for partial payment. Certainly, the landlord could take the unpaid portion of the rent from the tenant’s security deposit. However, if the Arizona Association of Realtors