Property management is a big business that handles a lot of money, with managers collecting rents from tenants and then forwarding the funds to owners. As payments increasingly move online and away from paper checks, a fair share of those funds flow through the ACH Network. That makes it all the more important for property managers to be aware of their responsibilities when using the ACH Network.
“As property managers you’re doing so many things and wearing so many hats, but you’re also a payments provider, or what’s called a ‘Third-Party Sender’ on the ACH Network,” said Jordan Bennett, Nacha Senior Director, Network Risk Management. “If the money comes to you, and then you pay the landlord using your own financial institution, you are a Third-Party Sender.”
Bennett, who oversees the Nacha Certified program for Third-Party Senders, was the guest on a recent episode of “The Property Management Show” podcast produced by Fourandhalf, a marketing agency for property managers.
He told property managers that while they might not think about their roles as Third-Party Senders, it’s important that they know what they’re supposed to do with respect to the Nacha Operating Rules. The Rules contain protections not only for property managers, but also landlords and tenants. Being Nacha Certified, Bennett said, shows you are complying with the Rules and meeting Nacha’s standards.
The complete podcast is available to download free on the Fourandhalf website. You may also watch the video version: