Best Practices for automating rent collection.

10 Replies

Hey guys!  Could sue your input...

I have been a Small-time landlord for sometime in SFR's, and am looking to stop taking rent payments via Cashier's Check/MO's.

I would like to know:

1)  Your preferred electronic method/system for collecting rents.

2)  If you know of any systems that I can use that record payments for the sake of letting rent payments count toward credit scores (i.e., can help to build a tenant's credit score by paying on time, etc...)

Thx!

......aaaaaaaand GO!

As far as electronic that will help tenants build their credit you can look into:

Williampaid.com

I personally have not used them but have read good reviews.

Why make things more complicated then they have to be?  My tenants don't seem all that concerned about it and they rent in middle class neighborhoods.  Some choose to mail the rent and others deposit direct into bank.  They can also set up their own bill pay.  The choice is theirs and I haven't had a single problem.  Thank God!

I've been using www.erentpayment.com for several years. Excellent customer service, you have the choice of a tenant being auto-debited every month or they can just make the monthly payment by clicking a few buttons. You'll get notified by email when they pay. You can set up reminder emails to the tenant a few days before, as well as late payment emails. It does take 5 business days to clear into your account though, and it can be longer if there's a holiday weekend around that time. It's $3 per transaction, which I pay, but it's well worth it.

I also have some tenants that deposit their rent directly into my business account. I only do that if the tenant has a unique rent amount, so I know which tenant paid. I do not take checks or anything by snail mail, never will, and will never pick up rent personally.

I know several guys that have the tenant do a direct transfer monthly via checking but I know that can cause issues b/c not all tenants have a bank account which is probably why you get cashiers checks and M.O's. If they cash the same at my bank then I take em!!

Why are you looking to quite taking them @Drew Wiard  ?

Great feedback everyone......much appreciated!

@Jared Kepmer - I'm not so much looking to stop taking CC's or MO's as much as I am looking for 1) a more standard method of taking payments to make life easier and 2) provide a "carrot" for my Lease / Purchase candidates by helping to build their credit by having on-time payments that are tracked by the credit bureaus (sp??).

Any other vendor suggestions?  Thanks!

@Drew Wiard  Oh, now I see why. I have never used any of the automated payment methods so I am following this post myself to see what comes up. Hope you find what your looking for. Good post!!

@Jared K.   - I signed up with the aforementioned eRentPayment.com.  It's GREAT.

Cool!! Thanks Drew!! I will have to check it out.

@Drew Wiard  

I use SparkRent to collect my rent online.  It only costs $1 per transaction.  However, it does not have the option to report credit.

I've been looking for one that will report credit and also have an option to add fees each month for such things as utilties.

I was just checking out WilliamPaid, and at first glace it looks to be free and report credit for tenants.  Anyone have experience with this one?

I also just started using erentpayment.com and so far so good. Much easier than dealing with mail and checks. Less hassle.

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