In this article, we will give an overview of how Member financials work.
What payment options are Members given at booking?
Members can choose their Dues Day (day of the week their payment is due) and their payment frequency (weekly or biweekly). Additionally, they can pay using a debit card, credit card, prepaid card (see restrictions here) or bank transfer (ACH).
When are members billed?
Members are billed two days before their Dues Day.
Members receive a late fee ($25) if they carry a balance past 11:59 PM on their Dues Day, even if a partial payment was made.
Members that carry a balance of $300 or greater after their Dues Day will be placed in ‘Termination Risk’ status. They will have 48 hours after their Dues Day to get their balance under $300 or their PadSplit Membership will be terminated.
For more information on Member financial statuses, see How to interpret a Member's financial status.
Do members pay in advance?
Yes, Members are always billed in advance. Members prepay for the upcoming week (or weeks if biweekly) For example, if a Member’s Dues Day is Friday the 11th, the invoice they receive on Wednesday the 9th will be for payment to stay from Saturday the 12th through Friday the 18th.
What is PadSplit’s collection rate?
Including late fees, other billed amounts and dues, PadSplit’s current collections rate is 97%.
What can I do as a host to prevent collections terminations?
Hosts can help members in ‘Termination Risk’ status by issuing concessions or postponing a Member’s termination date (see How can I prevent a Member from being terminated for collections?). In addition, hosts can reinstate the Membership of Members that have been terminated for collections (see How do I reinstate a Member who was terminated for collections?). Both options are available in the Member profile on your Host dashboard.
What does PadSplit do to help Members that are facing financial hardship?
The PadSplit Collections team works hard to contact and remind Members of their balances, upcoming deadlines and the consequences of non-payment. We send reminders via email, app notifications and SMS every dues date and every time a Member is late in paying their dues. In addition, we call every Member at risk of termination to understand their situation and try to find ways to help them. During these communications, we always remind Members of the payment resources that are available to them, such as an interest free loan from our partner Esusu.
In cases where we couldn’t prevent the Member’s termination, the PadSplit Support team will call at least 4 times to encourage them to move out of the property. If we find out the status of the Member’s move-out, we update the Host about it.