direct deposit for rent payment

8 Replies

Does anyone out there have their tenants go to your bank with their rent check payable to you, fill out the deposit slip, and hand it to the cashier as a way of paying the rent?

I had previously always had them mail it but am now beginning to do it this way.

Yes, I have done that in the past, when the tenant makes the deposit, they text me and I check my account and confirm, the deposit slip is their receipt.

I do something similar to Andrea, however they don't have access to my full account number. They go up to the teller, tell the teller they want to deposit into the account for HBS Real Estate and they have the last four of the acct #. I just feel better not giving out my entire account number. They then text me when they've done so.

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Do you not realize that anytime you write a check to the pizza guy, or anyone else, that you're giving them your whole account number? It's safe....

I believe 23 of my 28 tenants deposit their rent in this manner and really like it. I have everyone write either their name or address on the deposit slip. I can then pull it up online and see who has paid and who has not.

I do the same with direct deposit however it gets confusing when a tenant pays late fees I don't know who's who? And some of my tenants don't know how to text. Any ideas?

I have my tenants direct deposit into my account and it works great. As far as keeping track of who deposited what, you can just have them write an invoice number on the check, or money order. I think cash transactions would be difficult to track.

I was wondering how easy it may be to just pull the money out of their accounts, like an automatic withdrawal. (ACH/ETF) Hey credit card companies and insurance companies do it, so why not landlords. I am sure there are some on Biggerpockets doing just that.

Originally posted by @Jaime Frausto:

I do the same with direct deposit however it gets confusing when a tenant pays late fees I don't know who's who? And some of my tenants don't know how to text. Any ideas?

Like others have said, make them use a deposit slip with the address on it-and- find a bank that posts pics of those slips online.

I have a bank that does real-time images of the deposit, so I simply log-on and see the amount, the pre-printed address on the slip, and the timestamp.

Also the money automatically sweeps out everyday so no major security concerns.

On my payment instructions I tell them "you must use either the pre-printed deposit slips or you must write your address on a blank deposit slip provided by the bank..blah blah....Failure to do so may make you subject to a late fee "

I opened up a separate savings account for each of my tenants.  They have their own account number to deposit into so I know who paid what, then I can just go on my phone and transfer everything into my operating account.  I also provide deposit only ATM cards so they have no excuses for late payments.