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Confusion over RE Connect Pricing
16/03/09 13:45
I recently heard reports of some confusion regarding the fees charged by RE Connect oneCard. The story was that one tenant – who may not have fully understood his options - thought he had no choice other than to pay around $288 per annum to pay his rent through RE Connect oneCard.
So this week I thought I would use this post to clear up some confusion about RE Connect oneCard, it’s uses, and the fees charged.
RE Connect one Card is and always has been an optional way of paying rent. Tenants must not be forced to use this service and must be given alternatives. The fact that this tenant felt like he didn’t have alternatives is not something which is approved or condoned by Corum.
As to the costs of using the service there are several different options which can be used by tenants to pay their rent:
a) Direct Debit from Bank Account $3.20 per month
b) Pay by BPay $3.20 per month, plus $0.75 per payment
c) Pay at Australia Post $3.20 per month, plus $1.90 per payment
d) Pay by MasterCard/Visa Card 1.32% per payment
So, if a tenant wishes to pay rent using Direct Debit, they can make unlimited payments from their bank account per month for their $3.20. This is actually cheaper than a lot of other payment methods used today (see my last post on the cost of cash!). If a tenant were to pay their rent fortnightly, then taking cash out of ATM’s could cost $4.00 per month in fees, followed by the time and effort it would take to walk it down to the Real Estate Agents office.
Credit cards, are of course, the most expensive method of paying rent due to the surcharge involved. For the record, most of this surcharge is paid to the banks, the card schemes and the government (GST). Part of the profit the banks and card schemes make on this goes towards funding their reward schemes, like frequent flyers etc. So if a tenant were to go down the route of paying rent by credit card to earn frequent flyer points or other rewards points, hopefully they have done some sort of a personal cost/benefit analysis to make sure that its worth it in the long run.
Recently, most people are aware, we added Ambassador Card rewards to RE Connect oneCard to make the card more attractive to tenants. Ambassador Card can actually help tenants save money on basic items like fuel and groceries and other little “luxuries” like dining and accommodation. (See one of my earlier posts on how Ambassador Card beats the tips from Money Magazine!)
With RE Connect oneCard and Ambassador Card together, paying rent can actually end up in the tenants favour! Take this example:
What it all comes down to is that it’s a matter of choice for the tenant. Under RE Connect oneCard there are three options that are cheaper than using credit card to pay rent.
As an agent you need to make sure that you are offering genuine payment choices to your tenants and that these choices, including any fees, are understood by the tenant prior to them entering any agreements with regard to their rent payment methodology. That way everyone benefits.
So this week I thought I would use this post to clear up some confusion about RE Connect oneCard, it’s uses, and the fees charged.
RE Connect one Card is and always has been an optional way of paying rent. Tenants must not be forced to use this service and must be given alternatives. The fact that this tenant felt like he didn’t have alternatives is not something which is approved or condoned by Corum.
As to the costs of using the service there are several different options which can be used by tenants to pay their rent:
a) Direct Debit from Bank Account $3.20 per month
b) Pay by BPay $3.20 per month, plus $0.75 per payment
c) Pay at Australia Post $3.20 per month, plus $1.90 per payment
d) Pay by MasterCard/Visa Card 1.32% per payment
So, if a tenant wishes to pay rent using Direct Debit, they can make unlimited payments from their bank account per month for their $3.20. This is actually cheaper than a lot of other payment methods used today (see my last post on the cost of cash!). If a tenant were to pay their rent fortnightly, then taking cash out of ATM’s could cost $4.00 per month in fees, followed by the time and effort it would take to walk it down to the Real Estate Agents office.
Credit cards, are of course, the most expensive method of paying rent due to the surcharge involved. For the record, most of this surcharge is paid to the banks, the card schemes and the government (GST). Part of the profit the banks and card schemes make on this goes towards funding their reward schemes, like frequent flyers etc. So if a tenant were to go down the route of paying rent by credit card to earn frequent flyer points or other rewards points, hopefully they have done some sort of a personal cost/benefit analysis to make sure that its worth it in the long run.
Recently, most people are aware, we added Ambassador Card rewards to RE Connect oneCard to make the card more attractive to tenants. Ambassador Card can actually help tenants save money on basic items like fuel and groceries and other little “luxuries” like dining and accommodation. (See one of my earlier posts on how Ambassador Card beats the tips from Money Magazine!)
With RE Connect oneCard and Ambassador Card together, paying rent can actually end up in the tenants favour! Take this example:
What it all comes down to is that it’s a matter of choice for the tenant. Under RE Connect oneCard there are three options that are cheaper than using credit card to pay rent.
As an agent you need to make sure that you are offering genuine payment choices to your tenants and that these choices, including any fees, are understood by the tenant prior to them entering any agreements with regard to their rent payment methodology. That way everyone benefits.
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Linking Multiple Tenant Cards
23/01/09 16:30
There has been an update to our rent card products this month, in the area of automatic receipting, and linking tenant cards together.
Why would you want to link tenant cards? If you have properties where there are multiple tenants paying rent but you want the funds receipted against only one property, you will want to link the cards together so that the fun
ds are all receipted against the correct property.
Within all of our rent card products you could previously only link two subsidiary cards to one “master card” number which was placed in the bank details of your property management system.
Now, we have expanded the system capabilities to allow an unlimited number of cards to be linked to a “master card” number. We have also upgraded the functionality to make it a bit more “user-friendly”.
If you are an existing client, you can check out the new features by logging into the agents only portal, and clicking on “Link Multiple Cards”.
Why would you want to link tenant cards? If you have properties where there are multiple tenants paying rent but you want the funds receipted against only one property, you will want to link the cards together so that the fun
Within all of our rent card products you could previously only link two subsidiary cards to one “master card” number which was placed in the bank details of your property management system.
Now, we have expanded the system capabilities to allow an unlimited number of cards to be linked to a “master card” number. We have also upgraded the functionality to make it a bit more “user-friendly”.
If you are an existing client, you can check out the new features by logging into the agents only portal, and clicking on “Link Multiple Cards”.
Best practice - Tenant mailouts and the importance of choice
27/10/08 20:41
Hi Everyone!
It’s rapidly approaching Christmas - in fact I think at last count there is only about 7 weeks between now and the festive season. Time to start making that list and checking it twice... or more than twice given the state of the economy at the moment....
There are lots of you starting to think about taking breaks over Christmas (and if you’re not thinking about it and want a break, now might be a good time to start thinking about it!). Please don’t hate me, reminders are a good thing, really!
Quite a few of the account managers here at CRES have been recommending to our clients that doing a tenant mailout before Christmas is a great idea for a couple of reasons:
1. The more tenants using your chosen rent card system, the more automated your rent collection processes, the less manual work you need to do - AND the more time and money you can save by automating manual processes.
2. Give your tenants an early Christmas gift of the Ambassador Card - think of all the savings that they could get on Christmas goodies and shopping - and they would have you - their real estate agent - to thank for it!
So I thought I’d dedicate this post to “Best Practice” in doing tenant mailouts. I have seen a lot of letters go out to tenants in my time at Corum, some of them have been really great, others not so great, but there are some general guidelines you should follow if you are going to do a mailout.
When people mail their tenants to use rent cards there is often a temptation to presumptively “close” them and I have seen a lot of agents try to tell tenants that “this is the way its going to be from now on” and basically not giving them a choice in rent payment methods.
This approach is a little problematic for a couple of reasons:
1. If an existing tenants lease agreement specifies a method of rent payment that is not the rent card, then the legislation in all states says that you cannot force them to change payment methods, both the tenant and the agent must agree to the change.
2. The issue of third line forcing in the Trade Practices Act also comes into play. Although at times hard to prove this basically means that there needs to be a choice for the tenants in rent payment methods. If you make the rent card a “condition” or “pre-requisite” to the commencement of a lease with your office, it could be considered to be third line forcing.
I recently read a book called “Flip” by Peter Sheahan which talks about “how counter-intuitive thinking is changing everything - from branding and strategy to technology and talent”. If you’re interested in modern marketing I think its its well worth reading. My point here is that a bit of counter-intuitive thought can get a much better result for you in the long run. And here is how:
Firstly, no-one likes to feel “forced” into anything and you need to make sure you turn the feeling around. If you can explain to tenants why you feel the change is necessary (eg improved security, not accepting cash in the office, streamlining your processes, eliminating unidentified payments) you will get a much better response than telling them they “must” to do something. If you try to force tenants to change without explaining why, you may even get complaints - which is completely counter-productive to what you are trying to achieve!
Secondly, its important to sell the benefits of the service. If you are with us, you have the ultimate advantage in selling to tenants the benefits of our cards, as there are no other rent card providers that give your tenants the ultimate choices in payment options, with an honest-to-goodness instant rewards program that members of the public pay $199 per annum for.
So, here are my best tips for mailing tenants:
1. Your letter should say that your new rent payment card is your “preferred” method of payment available and that you are phasing out other payment methods.
2. Explain why you are making the change.
3. Explain the benefits to the tenant of making the changes - i.e. what’s in it for them.
4. State in the letter an explicit choice - for eg “Should you choose to change to “rent” card, we are sure you will enjoy the benefits.”
I think you are much better off taking the counter-intuitive approach and getting your tenants steadily onto the card and the benefits for all will be obvious over time. Whilst you are in the process of changing your old tenants over you can always sign new leases up to the card and as your old tenants gradually vacate, the total number of managements using the card will gradually go up.
Your goal should be around 80-90% of managements using the card to get the most benefits and your other payment methods offered should try to eliminate as much human error as possible - eg Bank Cheques and Money Orders. Some of our clients who have been particularly engaged have achieved very close to 100% which is an absolute credit to them and their staff.
If you would like some help completing a mailout to your tenants, please drop us a line and let us know. One of the many services we provide is completing mailouts on your behalf at no charge. Alternately we can give you the tools and advice to successfully complete a mailout on your own.
All the best,
Sam
PS - the BEST letter I have seen recently was written by Ben (his real name) who is the Business Manager of one of our new agents in QLD. Thats as far as the public ID goes, but if you are reading this Ben - it was a really great approach! I’d definitely sign up!
It’s rapidly approaching Christmas - in fact I think at last count there is only about 7 weeks between now and the festive season. Time to start making that list and checking it twice... or more than twice given the state of the economy at the moment....
There are lots of you starting to think about taking breaks over Christmas (and if you’re not thinking about it and want a break, now might be a good time to start thinking about it!). Please don’t hate me, reminders are a good thing, really!
Quite a few of the account managers here at CRES have been recommending to our clients that doing a tenant mailout before Christmas is a great idea for a couple of reasons:
1. The more tenants using your chosen rent card system, the more automated your rent collection processes, the less manual work you need to do - AND the more time and money you can save by automating manual processes.
2. Give your tenants an early Christmas gift of the Ambassador Card - think of all the savings that they could get on Christmas goodies and shopping - and they would have you - their real estate agent - to thank for it!
So I thought I’d dedicate this post to “Best Practice” in doing tenant mailouts. I have seen a lot of letters go out to tenants in my time at Corum, some of them have been really great, others not so great, but there are some general guidelines you should follow if you are going to do a mailout.
When people mail their tenants to use rent cards there is often a temptation to presumptively “close” them and I have seen a lot of agents try to tell tenants that “this is the way its going to be from now on” and basically not giving them a choice in rent payment methods.
This approach is a little problematic for a couple of reasons:
1. If an existing tenants lease agreement specifies a method of rent payment that is not the rent card, then the legislation in all states says that you cannot force them to change payment methods, both the tenant and the agent must agree to the change.
2. The issue of third line forcing in the Trade Practices Act also comes into play. Although at times hard to prove this basically means that there needs to be a choice for the tenants in rent payment methods. If you make the rent card a “condition” or “pre-requisite” to the commencement of a lease with your office, it could be considered to be third line forcing.
I recently read a book called “Flip” by Peter Sheahan which talks about “how counter-intuitive thinking is changing everything - from branding and strategy to technology and talent”. If you’re interested in modern marketing I think its its well worth reading. My point here is that a bit of counter-intuitive thought can get a much better result for you in the long run. And here is how:
Firstly, no-one likes to feel “forced” into anything and you need to make sure you turn the feeling around. If you can explain to tenants why you feel the change is necessary (eg improved security, not accepting cash in the office, streamlining your processes, eliminating unidentified payments) you will get a much better response than telling them they “must” to do something. If you try to force tenants to change without explaining why, you may even get complaints - which is completely counter-productive to what you are trying to achieve!
Secondly, its important to sell the benefits of the service. If you are with us, you have the ultimate advantage in selling to tenants the benefits of our cards, as there are no other rent card providers that give your tenants the ultimate choices in payment options, with an honest-to-goodness instant rewards program that members of the public pay $199 per annum for.
So, here are my best tips for mailing tenants:
1. Your letter should say that your new rent payment card is your “preferred” method of payment available and that you are phasing out other payment methods.
2. Explain why you are making the change.
3. Explain the benefits to the tenant of making the changes - i.e. what’s in it for them.
4. State in the letter an explicit choice - for eg “Should you choose to change to “rent” card, we are sure you will enjoy the benefits.”
I think you are much better off taking the counter-intuitive approach and getting your tenants steadily onto the card and the benefits for all will be obvious over time. Whilst you are in the process of changing your old tenants over you can always sign new leases up to the card and as your old tenants gradually vacate, the total number of managements using the card will gradually go up.
Your goal should be around 80-90% of managements using the card to get the most benefits and your other payment methods offered should try to eliminate as much human error as possible - eg Bank Cheques and Money Orders. Some of our clients who have been particularly engaged have achieved very close to 100% which is an absolute credit to them and their staff.
If you would like some help completing a mailout to your tenants, please drop us a line and let us know. One of the many services we provide is completing mailouts on your behalf at no charge. Alternately we can give you the tools and advice to successfully complete a mailout on your own.
All the best,
Sam
PS - the BEST letter I have seen recently was written by Ben (his real name) who is the Business Manager of one of our new agents in QLD. Thats as far as the public ID goes, but if you are reading this Ben - it was a really great approach! I’d definitely sign up!
Update to Cleared Funds Processing
20/10/08 09:23
On Wednesday the 22nd of October we will be introducing new rules for cleared funds processing for transactions initiated by tenants using Credit Cards, BPay or POSTbillpay.
For POST Billpay and BPAY, if we receive the funds prior to the normal 3pm cut-off time, we will transfer the funds to you the same day.
For Credit Cards (MasterCard and Visa Card) if the transaction is processed prior to the normal 3pm cut-off time, we will transfer the funds to you same day.
Funds received or transactions processed after this time will be transferred on the next business day.
Please click here play a presentation for more information about the change and to find out more about this change and the new reports.
Please note, your speakers must be on, and for security purposes you will be required to enter your name before listening to this message.
Chat to you over coffee again soon!
For POST Billpay and BPAY, if we receive the funds prior to the normal 3pm cut-off time, we will transfer the funds to you the same day.
For Credit Cards (MasterCard and Visa Card) if the transaction is processed prior to the normal 3pm cut-off time, we will transfer the funds to you same day.
Funds received or transactions processed after this time will be transferred on the next business day.
Please click here play a presentation for more information about the change and to find out more about this change and the new reports.
Please note, your speakers must be on, and for security purposes you will be required to enter your name before listening to this message.
Chat to you over coffee again soon!
How Our Ambassador Card Rewards partnership "beats" the tips in Money Magazine
17/10/08 07:55
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Recently we Introduced a tenant rewards program to all of our rent payment solutions. Corum Real Estate Services partnered with Ambassador Card in May this year to provide a savings/benefits program to tenants who paid their rent with one of our franchise branded rent cards (or RE Connect oneCard).
Ambassador Card is usually $199 per annum membership, however, through our partnership tenants paying rent through us get access to this rewards program at no charge.
You can view some of the rewards available at www.reconnect.com.au/rewards.
Members of Ambassador Card can save money on fuel, groceries and more by pre-purchasing WISH cards at up to 5% discount which can be used at the participating stores - for e.g Woolworths, Safeway, Woolworths Caltex, Dick Smith, Tandy and more. There are also thousands of other discounts on Accomdation, Dining, Health and Beauty, Gyms and more right across Australia and New Zealand.
I have been doing a lot of travelling this month talking to agents about the benefits of promoting Ambassador Card to their tenants and happened to read an article in “Money Magazine” entitled “Save $100 extra a week, we show you how”. Whilst some of the tips are pretty good -- for example - opting for generics in pharmacies, quitting smoking (!), having car free days once per week and reviewing utilities providers can save a great deal of money.
But some of the tips, I think, are just awful!!! --Especially some like “learn to cut your own hair” (yes!!) and swap to “buying cask wine”, and -- wait for it -- if you mostly toast your bread then “check out your local bakery... who often have day old bread for as little as .60c - 80c per loaf”. Use powdered milk and save $5 per week.....Hmmm...
I know I’d rather take save 5% off my total grocery bill by pre-purchasing a WISH Card, shopping at Woolworths and then buying what I like - including fresh bread and fresh milk!!! Then I’ll join the Ambassador Card wine club and get up to 70% discounts on some decent wine, instead of drinking cask wine. While I’m at it, I’ll drive over to my local Woolworths/Safeway Caltex Service station with my discounted WISH Card and my Woolworths/Safeway grocery receipt and by presenting them both at the same time I’ll get another few cents per litre off my fuel.
Then, I think I’ll also head out for dinner tonight with my partner at a restaurant where I can get two meals for the price of one!
Chat to you over coffee again soon!