Never Accept Credit Cards for Rent & Deposits (Scam Alert!)

When it comes to collecting rent and security deposits, being flexible might seem like good customer service—but it can actually open the door to major financial risks. Landlords who accept credit cards or allow tenants to split their deposits over time are exposing themselves to scams, chargebacks, and unnecessary headaches.

Here’s why sticking to strict, secure payment protocols is one of the smartest moves you can make.

The Hidden Dangers of Accepting Credit Cards

At first glance, allowing tenants to pay rent or deposits with a credit card seems convenient. But here’s the risk most landlords don’t realize:

• Chargebacks: After moving in, a tenant can dispute the transaction with their credit card company, claiming it was unauthorized. If the bank sides with them, the funds are reversed—and you’re left without payment after already handing over the keys.

• Financial Instability: If a tenant has to rely on credit just to pay move-in costs, it may be a sign they aren’t financially prepared for long-term rent obligations.

Bottom line: Credit card payments might be easy upfront, but they can cost you big later.

Why Splitting Security Deposits Is a Red Flag

It might feel generous to let a tenant split their security deposit into multiple payments, especially if they seem eager to move in. But this practice is risky for landlords.

Here’s why:

• Incomplete Protection: Security deposits are your safety net. If you don't collect it in full before move-in, you're vulnerable if the tenant damages the property or skips out on the lease.

• Higher Default Risk: If a tenant can't pay the deposit upfront, they may struggle with future rent payments too.

• Lease Break Complications: If a tenant leaves early and hasn’t paid the full deposit, you’re left with limited recourse for damages or unpaid rent.

Protect your property—and your business—by requiring full payment of security deposits before handing over the keys.

Stick to Proven Processes (Not Personal Exceptions)

The best way to avoid scams and financial risks? Follow your established protocols. Every time.

• Set clear payment rules from the start.

• Require rent and deposits to be paid by secure, verifiable methods (like ACH transfers or certified funds).

• Train property managers and leasing agents to enforce these standards without making individual exceptions.

When your team sticks to the rules, scammers have fewer opportunities to take advantage—and you maintain consistency, trust, and legal protection across all your transactions.

Key Takeaways for Landlords

• Never accept credit cards for rent or security deposits—chargebacks are a real and costly risk.

• Always require the full security deposit upfront before move-in.

• Protect yourself by following strict, consistent payment protocols—no exceptions.

• Train your team to prioritize process over personal discretion for safer transactions.

Protect Your Rental, Protect Your Profits

Small exceptions today can turn into big problems tomorrow. At Navigate Property Management, we help landlords set smart policies that reduce risk, prevent scams, and keep your rental business strong.
Let’s connect and build a safer, smarter payment system for your properties.