Hello, kind of a newbie on here...
We have just landed our third rental, and now have three tenants (two in a duplex and one SFR).
We are looking to make rent collection easier and were planning on doing the following...
Open a savings account, in the name of our LLC, at the local bank here is western NC.
Give each of our tenants "deposit only access" to the savings account.
When they deposit the monthly rent, we will see it online and then withdraw it to pay mortgage, etc.
What are your thoughts on such a plan?
We figure it will be easy to identify each tenant's deposit via an identification number or even just by the name on the deposit slip...which I assume we will be able to see online...
We have checked with the bank and so far they see no problem with this, although the manager lady had never heard of such an arrangement. There would be no fee's, no software to purchase, etc.
I don't think "deposit only access" is really required. Anyone can deposit money into someone else's account as long as they have the account information.
I have a client that requires all her tenants to deposit directly into her trust account. She has an arrangement with her bank to mail her the deposit receipt receipt and a copy of the check.
People do this all the time. Unless this is put into the lease though, sometimes tenants are resistant because it might be an inconvenience driving to the bank vs. mailing the check.
You need to check with your bank to see if they allow cash from someone who is not on the account to deposit cash money. Make it easy for the tenant because the tenant is paying your rent.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing