Delayed Payment
I've used TurboTenant since 2025 and have generally been satisfied with the platform, but I recently experienced an issue that every landlord should be aware of. I turned over one of my rental properties and the incoming ACH payment for the first month's rent and security deposit exceeded $10,000. The tenant completed TurboTenant's screening process, signed the lease, and submitted payment through the platform. The ACH payment was successfully withdrawn from the tenant's bank account and settled. However, TurboTenant then held the funds for approximately 9 days before releasing them to my linked bank account. This was particularly frustrating because I pay for TurboTenant's Premium service, including expedited ACH processing. As landlords know, timing matters. Many of us need confirmation that funds have been received before countersigning a lease, turning over possession of a property, paying contractors, or making mortgage payments. A lengthy hold can create unnecessary financial and operational challenges. If TurboTenant was concerned about fraud, there were better ways to handle the situation. They could have disclosed upfront that payments exceeding a certain amount may be subject to extended review, notified both parties before accepting the transaction, requested additional verification, or provided a clear explanation and expected release date. Instead, the payment was accepted, the tenant's account was debited, and the landlord was left waiting more than a week for access to funds without meaningful advance notice. Fraud prevention is important, and reasonable verification procedures are understandable. What is not reasonable is withholding funds after they have been collected without clearly disclosing the possibility of a prolonged hold before the transaction occurs. A simple notice such as, "Payments exceeding $10,000 may be held for up to 10 business days for verification purposes," would allow landlords and tenants to plan accordingly and avoid surprises. My advice to fellow landlords: if a rent and security deposit payment will exceed $10,000, consider requesting a cashier's check, wire transfer, or a direct ACH transfer to your bank. Do not assume that paying for expedited ACH processing means large transactions will be available immediately. Learn from my experience and plan ahead. A delayed payment can create real problems, and in the wrong circumstances, it could even jeopardize a lease transaction.