Monthly cheques... a building manager's nightmare

Every month, it's the same ritual. Groupe immobilier Gescard manager Marie-Josée Ricard receives red-signed or unsigned cheques. An immeasurable waste of time for the woman who manages over 500 doors. 

Marie-Josée has to contact her customers again, who promise to issue a new cheque. Around the 15th of each month, she always sends a reminder to these late payers.

"I have no problem with those who pay by pre-authorized debit or others who send post-dated checks," she says.

Recently, his company asked a group of condo owners to pay by pre-authorized payment. More than half, about 40 out of 88, preferred the cheque method. "By signing a check," she observes, "people feel they have some control over their finances."
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Flexibility

For his part, Luc Riverin of property management firm Double RR believes he has solved the problem. With Otonom Solution," he says, "we have over 85 % of pre-authorized transfers. Someone can call me at 10 in the morning on the 1st of the month and ask to delay the transfer."

On occasion, he has made arrangements with tenants to deposit part of the payment and the rest halfway through the month. "That way, we avoid the cost of bad checks and manage the demand of the bad tenant while guaranteeing the landlord money," he says.

Mr Riverin advises against accepting cash. This eliminates the unpleasant surprises of a hasty departure before the end of the month. What's more, before renting a property, he pays 55 $ for a credit check. My maxim is simple," he confides, "I'd rather have an empty apartment than a badly rented one.

Over the past 12 years, he has noticed an improvement. "Just 2 % of tenants fail to pay for reasons related to personal problems including divorce, job loss, etc.," he illustrates.

Disappearance of cheques

Ms Ricard is convinced that cheques are on their way out. More and more business people and companies are turning to intelligent solutions that eliminate paper transactions.

Studies show that the use of cheques has decreased by 7 % across Canada. By 2020, businesses and government offices across the country will increasingly opt for electronic payments, reports Jesse Champagne, a consultant at DCR Stratégies.

"This eliminates significant costs for companies, as well as the time and expense associated with bounced or fraudulent cheques," he explains.

The worst thing for Marie-Josée Picard and the thousands of managers is the perpetual hunt for these monthly payment delinquents. Many of them always find a pretext or a reason to postpone their due date. That's another story.

In figures

In the digital age, using a cheque is a gesture from another era. Consumers have to buy a stamp first, and then go and post their cheque not far from home. Imagine the time wasted. As the saying goes: time is money. Here are some figures illustrating the astronomical costs associated with the use of cheques.

Up to 50 $ Some cheque orders cost between 15 $, 25 $ and even up to 50 $.
1.05 $ The price of a stamp in Canada. Electronic payment eliminates postage transactions.
75 % of companies in Canada have experienced a fraudulent cheque payment, according to JP Morgan.
50 M$ The cost of replacing lost or stolen cheques.
0,82 $ The cost of producing a cheque
0.13 $ : Electronic payment