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Landlords fear breaking privacy laws

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Guest | 05 Mar 2014, 03:16 AM Agree 0

Faced with the threat of large fines and legal costs, more landlords are choosing to continue using cheques instead of electronic methods as rental payments. With fraud cases more sophisticated, landlords fear that they may unknowingly break their legal obligation to protect personal information by using electronic systems. “Accidental (or intentional) disclosure of a tenant’s personal information could have serious consequences, so minimizing that risk exposure is a highly desirable benefit,” explains Christopher Seepe, a commercial real estate broker with Aztech Realty.He says the cost of using some electronic payments, such as credit cards, is another mitigating factor for landlords, with some financial institutions charging between one and two per cent for each transaction. “That is a huge cost if you have a lot of doors,” says Seepe. “Plus, the renters have to give their personal and credit information. That is a big responsibility and risk for landlords.”Seepe adds that many financial institutions are trying to dissuade investors from using cheques as it is costly for both sides. “There are many third party companies that can provide electronic payment services," he says. "Landlords need to be more mindful of privacy laws as they could be unknowingly getting themselves into trouble.”
  • Robert Harrington | 07 Mar 2014, 03:17 PM Agree 0
    5 years ago I set up several VISA accounts to allow my strata or "Condo Act" clients to pay their monthly strata pymnts which average about $200.00 a month here in BC.

    The VISA set up and continuing monthly transaction charges. Our bank at the time The Canadian Western Bank encouraged this and we all thought it was a great idea.

    Unfortunately the bank gave us horrible advice as the Visa fee structure was thousands more to set up the individual accounts, and the monthly transaction charges were outrageous, again much more than the bank advised us and then to really add to the disaster we found that VISA can go into your trust accounts and pay themselves even if your bank's accounting was in error.

    So the moral of the story is
    1/ Avoid credit card companies
    2/ Assume your bank is incompetent
    3/ If not checks use a Customer automated banking system and when you do and successfully set it up.
    Because your competent bank becomes incompetent the instant they hire a new person that has not been properly trained.
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