If you’re a renter in the U.S., you’ve likely encountered AppFolio—the property management platform that many landlords and property managers use to handle rent payments, maintenance requests, and lease agreements. While AppFolio offers convenient online payment options, it’s important to be aware of the credit card processing fees that may apply to your rent payments.
In this guide, we’ll break down what the AppFolio credit card fee is, why it’s charged, how much it typically costs, and most importantly, how you can avoid or reduce these fees.
What Is AppFolio and How Does It Work?
AppFolio is a cloud-based property management software used by landlords and property managers across the United States. It streamlines various tasks such as rent collection, maintenance tracking, and communication between tenants and property managers.
As a tenant, you can access your property’s AppFolio portal to:
- Pay rent online using various methods
- Submit maintenance requests
- View lease agreements and payment history
- Communicate directly with your property manager
Why Does AppFolio Charge a Credit Card Fee?
AppFolio charges processing fees to cover the costs associated with credit card transactions, including interchange fees and payment gateway charges. These fees are typically passed on to tenants, although some property managers may choose to absorb them.
It’s important to note that not all payment methods incur the same fees. For instance, ACH (eCheck) payments generally have lower processing costs compared to credit card payments.
How Much Is the AppFolio Credit Card Fee?
The credit card processing fee on AppFolio can vary depending on your property manager’s settings. However, based on available information, the typical fee ranges from 2.99% to 3.49% of the total transaction amount.
For example:
- If your monthly rent is $1,000, a 2.99% fee would amount to $29.90.
- At a 3.49% fee, the same $1,000 rent would incur a charge of $34.90.
Some property managers may also impose a fixed transaction fee in addition to the percentage-based fee. For instance, a $0.25 fee per transaction is common.
It’s crucial to check your specific AppFolio portal or consult your property manager to determine the exact fees applicable to your rent payments.
Ways to Avoid or Reduce Payment Fees
While credit card payments offer convenience, they can be costly due to processing fees. Here are some strategies to minimize or avoid these fees:
1. Use ACH (eCheck) Payments
ACH payments are typically the most cost-effective option. Many property managers offer ACH payments with little to no processing fees. For example, some property managers charge a flat fee of $2.49 per ACH transaction, while others may offer it for free.
2. Set Up Automatic Bank Transfers
Automating your rent payments through your bank’s bill pay service can help ensure timely payments without incurring additional fees. Many banks offer this service at no extra cost.
3. Inquire About Fee Waivers
Some property managers may be willing to waive or reduce processing fees, especially if you’re a long-term tenant or facing financial hardship. It’s worth reaching out to your property manager to discuss potential fee waivers.
4. Explore Alternative Payment Platforms
Third-party platforms like Bilt Rewards allow tenants to pay rent using a credit card without incurring processing fees. However, these platforms may have their own eligibility requirements and limitations.
Is It Legal for AppFolio to Charge Credit Card Fees?
Yes, it’s generally legal for property managers to charge credit card processing fees, provided they are clearly disclosed before the transaction is completed. In most U.S. states, landlords and property managers are permitted to pass on these fees to tenants.
However, some states have specific regulations regarding the amount that can be charged and how these fees must be disclosed. For example, in California, landlords must provide written notice of any additional fees before the lease agreement is signed.
If you believe a fee is being charged unlawfully or is not properly disclosed, you may have grounds to dispute the charge.
Pros and Cons of Paying Rent with a Credit Card
Pros:
- Earn Rewards: Using a credit card can help you accumulate points, miles, or cash back.
- Build Credit History: Timely rent payments can positively impact your credit score.
- Payment Flexibility: Credit cards offer flexibility in managing cash flow.
Cons:
- High Processing Fees: Credit card payments often come with significant processing fees.
- Potential for Debt: Carrying a balance can lead to interest charges and debt accumulation.
- Risk of Late Payments: Missing a payment can negatively affect your credit score.
Alternative Payment Methods (ACH, Debit, AutoPay)
To avoid credit card processing fees, consider the following alternative payment methods:
- ACH (eCheck): Directly transfers funds from your bank account to your landlord’s account.
- Debit Card: Similar to ACH but may incur flat fees.
- AutoPay: Automates your payments, ensuring they’re made on time.
Each method has its own advantages and potential fees. It’s important to choose the one that best fits your financial situation and preferences.
Contact and Support Options for AppFolio Users
If you have questions or concerns about payment fees, it’s best to contact your property manager directly. AppFolio’s official support is primarily geared toward property managers, not tenants.
However, if you notice a charge that includes “APPFOLIO” and don’t recognize it, you can reach out to AppFolio’s Billing Services for assistance. They can help clarify the charge and guide you on the next steps.
FAQ Section
Can I pay rent on AppFolio without fees?
It depends on your property manager’s settings. Some may offer fee-free payment options like ACH or eCheck.
Why does my AppFolio payment cost extra with a credit card?
Credit card payments incur processing fees, which are often passed on to tenants.
Is it safe to pay rent on AppFolio with a credit card?
Yes, AppFolio uses secure encryption to protect your payment information.
Do all property managers charge the same AppFolio fee?
No, fees can vary based on the property manager’s settings and chosen payment methods.
Can I dispute a credit card processing fee?
If you believe a fee is incorrect or unauthorized, contact your property manager. If unresolved, you may dispute the charge with your credit card issuer.
Read Also- Top Milwaukee Credit Card Processing Companies
Conclusion
Understanding the AppFolio credit card fee is crucial for managing your rental expenses. By exploring alternative payment methods and discussing options with your property manager, you can minimize or avoid these fees. Always ensure that any fees are clearly disclosed and comply with your state’s regulations.
Remember, being informed and proactive can help you make the best financial decisions regarding your rent payments.
Emma Rose is a U.S.-based personal finance writer and a regular contributor at Cardix.us. She focuses on topics like credit cards, credit scores, and everyday money management. Emma’s writing makes complex financial concepts simple and practical, helping readers make smarter credit and spending decisions with confidence.
