How do you get your rent?

28 Replies

So I have 2 duplexes in a city about a half hour away from where I live.  My lease gives tenants a 4 day grace period to pay the rent.  I always call the day before the first of the month and let them know that i'll be coming to the city to get rent tomorrow (the 1st).  Rarely, they all have it and are actually home to give it to me but most of the time, I have to go get rent from a few of them, then go back a day or two later to get the rest of them.  I don't mind going there once a month to check on the houses but it's becoming more like 2-3 times a month trying to get rent from 4 people. 

My friend/mentor said that he always goes to the houses and collects rent.  I kind of just followed his guidance but what a pain in the rear.  Do you have your tenants mail you the rent?  pay online?  or do you go and get it? 

curious at what the majority does...

I use zelle. It’s a new application that has been integrated into all major bank mobile apps. Both tenants use Bank of America. I use Chase. They can immediately send me the payment that way. They don’t have to go get a check and I don’t have to go hunting.
Good luck,
-Pierson

Amazingly, most of my tenants still mail checks although I've taken paypal and venmo as well. Digital payments tend to me more on-time in my experience.

There are so many better ways to collect the rent than making multiple trips to collect it in person.  You could use a site like Cozy, or use Zelle, or have the tenant deposit the rent directly into your bank account, or even mail it to you.  All are free and would be much easier for you. 

Personally, I get all of my rent checks deposited directly into my bank account, either via auto deposit or the tenant going into the bank to deposit it.  But I literally do nothing to collect any of it.  Nothing better than being on vacation and seeing that rent money just automatically all appear in your account without you having to chase it down or do anything at all.

Unfortunately you have trained your tenants to disrespect you and they could care less if they inconvenience you.  It is self inflected.

Landlords should never train their tenants that they are at their beck and call. Picking up rent checks is a terrible decision. A tenant is 100% responsible to insure their landlord receives the rent, it is not a landlords responsibility to pick it up. 

Worse case have them mail checks but insist that they must be received by no later than the day the rent is due. Post mark is irrelevant, accept no excuses. 

Rent is late at midnight on the day it is due regardless of any late fee grace period. If rent is not received on or before the first you post a pay or quit order on the 2nd.

The grace period is not a licence for tenants to screw you around.

Originally posted by @Thomas S. :

Unfortunately you have trained your tenants to disrespect you and they could care less if they inconvenience you.  It is self inflected.

Landlords should never train their tenants that they are at their beck and call. Picking up rent checks is a terrible decision. A tenant is 100% responsible to insure their landlord receives the rent, it is not a landlords responsibility to pick it up. 

Worse case have them mail checks but insist that they must be received by no later than the day the rent is due. Post mark is irrelevant, accept no excuses. 

Rent is late at midnight on the day it is due regardless of any late fee grace period. If rent is not received on or before the first you post a pay or quit order on the 2nd.

The grace period is not a licence for tenants to screw you around.

Originally posted by @Ihe O.:
Originally posted by @Thomas S.:

Unfortunately you have trained your tenants to disrespect you and they could care less if they inconvenience you.  It is self inflected.

Landlords should never train their tenants that they are at their beck and call. Picking up rent checks is a terrible decision. A tenant is 100% responsible to insure their landlord receives the rent, it is not a landlords responsibility to pick it up. 

Worse case have them mail checks but insist that they must be received by no later than the day the rent is due. Post mark is irrelevant, accept no excuses. 

Rent is late at midnight on the day it is due regardless of any late fee grace period. If rent is not received on or before the first you post a pay or quit order on the 2nd.

The grace period is not a licence for tenants to screw you around.

Why don't you give that nonsense a rest. 

As long as the man gets paid what is your problem. 

Up here in Canada we use e-transfer. The deadline for payments is 12nn of the date they moved in every month, typically 1st or 15th. We have an addendum that is signed that states late payments are $5 a day and the BC tenancy law applies if rent is late which may result to eviction.

I heard somewhere that you can create good tenants and it needs to start with discipline with process and system for them and for the landlord a little welcome token or a birthday card or holiday greeting.

Paypal or  teller deposit into my account, whatever works for the tenant esp since most of mine don't seem to use banks for their money.
If the circumstances warrant I will go round and collect cash but that is very much the exception. It only happens if I am sufficiently concerned about the payment.

Make it easy for the tenant, that way you limit excuses. One of my tenants expressed relief when I switched the rent account to mine at BofA instead of the more obscure bank my property manager banked with because she had a branch right outside work.

I am very lenient with my tenants on timing. They know there is a point beyond which not to push things.

Direct deposit to ur bank.  Internet savey can do it online saving 2 trips to banks.  

Someone suggested iManageRent.

It's a landlord portal. I have not used it.

I just closed on a 6 unit two weeks ago. The property is about 30m away and I'm struggling with the same concern. I've instructed the tenants to mail payments for now, but would like to find a more convenient long term solution. The previous owner had payments deposited directly into their account. That arrangement seemed odd to me and I'm suprised others here do the same. Is this widely used? What are the pros/cons you've experienced? Is it worth the hassle of another bank account for this purpose?

As a owner of a property management company we try to get our tenants to pay online. Be very strict if they are late and have a system in place. Always charge late fees.

I highly recommend a good property management company. Tenants respect property managers more than the owners. Sad truth but I see it all the time.

@Thomas S. You're completely correct on this!

@Ihe O. He has no problems! He prevents them by  having his tenants pay him! Not him having to run after them.

The original poster said that @Brian Zaug had to go 2-3 times a month to certain locations to get the rent. 

That's ridiculous! 

I tell my tenants they have two options.

#1 Upon signing the lease they can give me 12 post dated cheques for the entire year

#2 They can e-transfer me the money on or before the due date.

Either way it needs to be in my account on or before the 1st of the month. I give my tenants a $50 a month discount if they pay in full on or prior to the due date. (the $50 is already priced into the agreed rent) But this way they feel that they're saving up to $600 a year just for doing what's expected.

@Brian Zaug I use PayNearMe. Tenants can pay at local 7Eleven or CVS. Downside is I don't get funds until the tenth of the month from PayNearMe. If I want to make a withdrawal any other time it costs $25. I don't mind it though because it sure beats having to pick up rent as before I was doing the same thing you are doing. It costs nothing to set up the PayNearMe account. It costs the tenant $5 to make a payment.

"As long as the man gets paid what is your problem."

I don't have a problem Brian posted with a problem. I answered by explaining he created his own problem, how he created it, what the results of his actions are and how he needs to correct it. He asked, I answered. You do not have to agree.

If your happy being a lap dog for your tenants to abuse that is fine by me but don't expect all landlords to be grateful to tenants that pay when it suites them. If you are not happy with my comments you are more than welcome to ignore them.

I use cozy.co

It’s all automatically drawn out of their accounts.

I agree with Thomas S. My rentals are all 20-30 miles from me. I am looking into electronic payment but for now it’s check or Money Order sent USPS. I would never allow my tenants to “train” me to go door to door looking for rent! Does the electric company or their auto loan provider do that? No way!

Tenants deposit their rent straight into my back account or if the bank is closed the can either leave the payment at my business, pay by Credit Card(they pay extra for the processing fees) or leave a check in my mailbox. We are trying to make the least amount of work as possible and don’t want to be chasing rent, the tenants would have to pay extra for that service

@Eric H. paynearme is $5 per rent payment for the tenant? That’s a little high

Cozy.co for over 2 years. I require it for our renters.

Cozy.co; I require it for tenants; tenants all like it

Originally posted by @Steve S. :

@Thomas S. You're completely correct on this!

@Ihe O. He has no problems! He prevents them by  having his tenants pay him! Not him having to run after them.

The original poster said that @Brian Zaug had to go 2-3 times a month to certain locations to get the rent. 

That's ridiculous! 

Nonsense.  That what he CHOSE to do. Nobody has to do that and that's what he is asking about.

If you insist on collecting your wages from your employer cash in person there are going to  numerous occasions where you don't get paid on the date and time you want to. Usually that will have zero correlation to your employers attitude towards paying you. 

Right now I am dealing with a tenant who I am going to have to visit and collect cash from because she has a sick 1 month old baby and she is also off work post her pregnancy. 

So I could sit here and be a jerk about the failure to comply with her obligations but the reality is  me and my rent are not at the centre of her universe right now. 

She will pay, the last thing she needs is to lose her home, the last thing I need is to lose my tenant. 

Well thanks all for the recommendations.  I agree that running around looking for rent seems a bit primitive.  A friend who I trust likes to go to the houses and get rent so I just kind of followed suit.   I will be looking into cozy later today. 

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