Alcove's rent process is built for long-term shared housing. We take care of rent payment collections from tenants.
Payment Setup:
Rent is paid automatically via our integrated Stripe system (the same payment processing platform used by Uber, Airbnb, Amazon, and more). A Stripe account is required in order to receive rent payments each month. To get started, visit your Alcove manager portal via this link. Click here for a video walkthrough on how to connect your Stripe account.
First Payment:
We will charge your tenant for the first month on the first day of their lease. The amount will be the monthly prorated amount for that 1-bedroom. Upon successful charge, these payments are released to you immediately. However, since most tenants opt to pay their rent with ACH/Bank payments, it usually takes around 5 to 7 business days for the funds to be released to you.
For each subsequent bedroom lease, the tenant will be charged on the first day of the lease. The amount charged will be the prorated monthly rent for the remaining days of that month.
Please note that tenants do not have automatic renewal rights. This means that both parties will need to sign a new lease for each renewal period. The first lease payment following a renewal will be treated the same as mentioned above.
Ongoing Payments:
During the remaining lease period, Alcove will charge the tenant on the evening before the 15th of each month for the following month's rent. For example, the rent for February will be charged to the tenant on or before January 15.
If the rent charge is successful, the rent payment(s) for the bedroom are released to you on the 1st of every month. If a tenant's current bedroom lease ends before the end of the month, Alcove will charge a prorated payment for the remaining days until the lease end date.
What happens when a tenant is late on rent?
In the past, Alcove has had a strong track record of collecting rent, with an average collection rate of 99.4%*. Most rent payments are collected within 30 days, with an average rate of 98.4%. However, while rare, there are instances where rent delinquencies occur. Unlike regular listing platforms, Alcove is involved actively in rent collection.
Here is an overview of our process for rent collection:
|
Progression |
Day of the Month |
Processes |
|---|---|---|
|
0 day past due |
15th |
1st auto-collection attempt
If unsuccessful, a notification is sent to the Tenant via email.
|
|
3 days past due |
18th |
2nd auto-collection attempt
If unsuccessful, Alcove's tenant operation team sends a text and an email to the Tenant, reminding them of the late payment |
|
5-6 days past due |
20th-21st |
3rd auto-collection attempt
If successful, a 3rd set of texts and emails are sent to the Tenant. This outlines that their payment is late and a late fee has is applied to their account. In addition, Alcove reviews Tenant's guarantor information if applicable and begins reaching out to their guarantor contact. |
|
7-8 days past due |
22nd-23rd |
A member of Alcove's team reaches out to the Tenant via phone. During this call, we discuss: 1. Late rent fees 2. Potential consequences of a being rent delinquent 3. Timeline on future payment |
|
10 days past due |
25th |
Alcove sends a 4th set of text and emails, informing the tenants know that their rent is now delinquent and they are eligible for a potential summary ejectment process
|
|
11 days past due |
26th |
On the 26th day, a final set of text messages is sent to the tenant, reminding them of the specific amount of rent that is due. Additionally, the message outlines the next steps that will be taken if the payment is not made on time. |
|
12-13 days past due |
27th-28th |
On the 27th or 28th day: 1. An 'Pre-Notice to Pay or Quit' email is sent to the Tenant. 2. If applicable, an email is sent in parallel to the guarantor, along with a one-click link to the Stripe invoice |
|
14-15 days later |
29th-1st |
On the 29th, 30th, 31st, or the 1st of month, our team makes a second phone call to outline: 1. Any potential summary ejectment processes that have been started by the Landlord 2. Next steps in the delinquent rent process If applicable, a separate phone call is made to the guarantor during this step. |
|
16-20 days past due |
1st-4th |
At this stage, the Landlord or their representative becomes actively involved and provided detailed information about the summary ejectment process. Alcove is available to offer assistance throughout the process to ensure a seamless resolution, but ultimately, it is the responsibility of the Landlord or their agent to file for summary ejectment. |
Please keep in mind that this is a general summary, and our rent collection process may be updated from time to time
*Based on data from the 2021 May - 2023 May
Late Payment Fee Allocation:
a) If the rent payment is collected before the 1st day of the month, any late fees collected as per the lease agreement will be paid to Alcove.
b) If the rent payment is not received by the 1st day of the month, any late fees collected as per the lease agreement will be paid to the Landlord.
Late Fee Amount: The late fee amount will be specified in the lease agreement and must be adhered to.
Collection of Late Fees: Late fees will be collected at the same time as the overdue rent payment. If the tenant fails to include the late fee with their late rent payment, the fee will be deducted from the next rent payment received, leading to a partial rent payment and continued late status with associated late fees.
Please note that the application of this policy does not waive the landlord's right to insist on timely payment of rent, and late payments may result in eviction proceedings as allowed by law.
What about a Tenant Ending their Lease Early?
Our Early Lease Termination policy applies.
How is a Prorated Payment Calculated?:
Rent is marketed, calculated, and paid on a monthly basis. Any prorated amounts will be based on the number of days in the month. This means that for the same monthly rate the per diem amount in February will be slightly higher than the per diem amount in January, as February has three fewer days than January.