BiggerPockets

i have my tenants deposit it directly into an acct that i have established specifically for that purpose.

i know mikeoh likes to go pick them up so he can check in on the property. i never like the 'mail' method as it goes along with 'the check is in the mail' and 'i can't be blamed if the mailman lost it' blah blah blah.

I like to pick up the rent in person. I find that it's a good idea to talk to each tenant each month as well as take a quick look at each property.

Furthermore, I collect the vast majority of my rent IN CASH. I don't have to worry about a check bouncing or the tenant stopping payment. When you get cash - you've got the rent! There is also nothing lost in the mail!

Mike

I've recently set up some of my tenants to pay rent online. If I don't get the rent on time, I get an email. At that point I can send them a rent reminder/late payment notice, etc...

All of my new tenants, I am requiring for them to setup online rent collection.

Tired of not getting my money on time! :shoot:

Mike has got more guts then I do. In a heavy urban area once the tenants know you are coming for the cash, you can expect that their friends will be lurking just around the corner to relieve you of and then split it with your tenants.

Aside from the above, the big problem I have with going to the property to collect rent is that you are training the tenants to rely on you to go get your rent. It comes down to who is training who?

I guess I like the old fashioned way... send it by mail, if I don't have it by COB on the fifth day its off to rent court on the 6th.

I have the Tenants mail the checks, and use the postmark as the due date i.e. if it is due on the first it must be post marked by the first. I send out an invoice on or around the 20th of every month with rent due on the first and a second line showing the amount due if not sent the first.

I have actually had some tenants just pay the late fee for months on end because they cant plan far enough ahead.

I have Eight units...

I'm flexible depending upon the tenant. With my college rentals the parents usually mail it like clockwork. With my blue-collars I send a bill with self-addressed envelope. With my low-income tenants I usually have to go pick it up.

But I don't like picking it up which is why I applied for a concealed carry permit.

Mike-
When you talk about picking up your rent money, are you talking bout your apartment complex's mostly or single family?
Another questionf or you mike and everyone else, how far apart are most of your rentals? do you stay in one area or buy where ever the price is right?
-Scott

when I started my business I followed Mike's business plan for the most part, including picking up rents in person. It give me a chance to check smoke detectors, living conditions, and any other problems. One month I found a water leak in the basement which I was able to promptly fix. So far I'm happy with the process and it's not that big of a time consumer. Plus it's fun to go pick up money!

Direct Deposit-Electronic transfer is the best option. Your tenant knows out front that the rent $ will come out of their acct. on the 1st of the month. It eliminates any emotional confrontation with the tenant. It also forces them to be more budget savvy and it also forces them to call you ahead of time if the rent will be late. Of course, this method all depends upon what part of town your properties are located and what class of tenant lives there! If it's a good neighborhood and your tenant is credit worthy, chances are they already use online banking services to pay their bills anyway.

I let one pay in cash and have 2 that direct deposit.
My next one is going to get a 10 dollar discount for direct deposit. After I inflate for the ten bucks.
I also give a discount for military. Love those guys for on time payment and no damage!