Can Landlords Require Tenants to Pay Rent Online — Rules, Limits and Exceptions

Answer

Many landlords prefer online rent collection for speed and record-keeping, but you can’t impose online-only payments in all situations. Federal fair housing rules, state/local laws and reasonable-accommodation obligations can limit a landlord’s ability to require electronic-only payment.

Key legal and practical points to consider:

• Lease terms matter — landlords commonly include an online-payment clause in the lease. That clause will govern between parties unless a statute or court rule overrides it.
• State and city limits — some jurisdictions restrict cashless requirements or bar landlords from forcing electronic payment only (New York and California have protections and local rules that address payment options). Always check state/local statutes and municipal ordinances.
• Fair housing and reasonable accommodations — tenants with disabilities may request alternatives (for example, mailing a check or allowing a caregiver to pay). Housing providers must consider such requests and cannot impose extra fees or deposits as a condition for accommodation.
• Unbanked tenants and consumer-protection issues — many local laws that curb cashless business practices aim to protect unbanked or underbanked renters; landlords should offer at least one non-electronic option where required.
• Fees and surcharges — some states propose or already prohibit landlords from passing online-processing fees to tenants; check for recent enactments in your jurisdiction.

  Practical steps for landlords and property managers: include clear payment-option language in leases; maintain receipts and written notices; provide reasonable alternative methods when required; train staff to respond to accommodation requests promptly; and confirm local rules about cashless policies or fee bans before enforcing an online-only requirement.

  Before changing payment policies, it’s advisable to verify state and local law and to consult a licensed attorney or local housing agency. Tenants who believe a refusal to accept their chosen lawful payment method or a denied accommodation violates their rights are recommended to document communications and consider contacting a local fair-housing agency or HUD.