Real Estate Investor · New York, NY · Member since 2014 · 15 posts · 2 votes
Hi,
I have a question for investors out there. Do you suggest renting a PO Box to collect your monthly rental checks? I will not be living in the building so I would like to avoid physically collecting these checks in the beginning of each month. Any pros and cons to renting a PO Box (other than the yearly fee)? Thanks in advance.
Involved In Real Estate · Houston, TX · Member since 2009 · 49 posts · 27 votes
12y
Hi,
I suggest you create a bank account with one of the bigger banks in your area that has many locations. Then it is up to your tenants to stop by and deposit the rent money/check in the account by a certain date. It will be easy for you to check if they paid on time, as you can check instantly online. Make sure this is in your lease agreement. This is what I do with my rentals and it is great! Speaking of whic, rent is due on one of my units today, and I got to log in and check right now.
Investor · Hagerstown, MD · Member since 2014 · 299 posts · 140 votes
12y
@Tiffy W. I use SparkRent to collect my rents online. Since they are deposited directly into my bank account, I don't have to drive around picking up checks and depositing them, and waiting for them to clear. However, this may be a problem if you have tenants that don't have a bank account or the internet.
I had considered using a PO Box for all business mail and use it also on the leases. But for now I use my physical address, since the thought of driving to the PO Box every day to check it is unappealing.
San Francisco, CA · Member since 2014 · 345 posts · 281 votes
12y
I have a UPS box, also capable of receiving shipments (I get an e-mail when a package has arrived, for example).
There are lots of folks Bigger Pockets who feel they have to carry a gun to show vacant units. That is over-the-top for my business, but I don't think it hurts to have an anonymous PO box in case you stumble upon a crazy person. Though, if your client base is nice retired people, it probably won't matter.
Involved In Real Estate · Houston, TX · Member since 2009 · 49 posts · 27 votes
12y
Hi,
I suggest you create a bank account with one of the bigger banks in your area that has many locations. Then it is up to your tenants to stop by and deposit the rent money/check in the account by a certain date. It will be easy for you to check if they paid on time, as you can check instantly online. Make sure this is in your lease agreement. This is what I do with my rentals and it is great! Speaking of whic, rent is due on one of my units today, and I got to log in and check right now.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
12y
@Tiffy W. relying on the PO is so last century. I highly recommend an ACH service. Tenants need a bank account and an email. The ACH service debits the tenants account for rent. You can set it up so that it happens pretty much any schedule. It's far superior to something that they must do each month. Having them deposit the funds in your account each month is the only other viable method IMO.
Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
12y
I don't suggest a P.O. Box solely for the purpose of collecting rent but I do suggest having one and if nothing else works use it for rent collections but I would Electronic payments or bank deposits before doing mail.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
I, too, suggest having your bank account with a bank that is popular and easy to access in your tenants' town. Then they can go to the bank and deposit it into your account with the teller. I do this with some of my tenants.
Also, you could try PayNearMe. It is a $3.99 for the tenant to use, but they take their rent money to a nearby 7-eleven, Dollar Store or Ace and present a barcode/number that you'd send to them. The PayNearMe service will then immediately notify you of the payment and it'll go into your bank account in a few days. I have used this as well for tenants who don't use the internet and/or don't have a checking account of their own.
Otherwise, yes, you could do the PO Box. It's cheap and doesn't give them your house address. UPS box is more expensive, but can do more things such as used as a business entity's main address on record. You can't use a PO Box for a business entity. Maybe you're not using a business anyway, but just saying the difference. :-)
Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
12y
Build a relationship with a banker from your home bank. Most will be happy to accept the check and deposit them for you. Only thing is it won't be easy to track especially if you have a 10 unit and all the rents are all $450 a month. You won't know who paid or didn't. If it is multiple units but all the rents are different amounts then it will be easier to track. My banker is too busy for me to hassle her on that.
If you have a multi unit you can nominate 1 tenant to collect all the rent and mail it to your bank or PO Box. Just reduce there rent by $5 and they will be happy to do it. Save stamps and they can keep track.
Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
12y
Also I did inquire on a PO Box with companies do provide a service where they can scan all mail and redirect them. This service was made for investors. I was going to use the service to redirect the checks to my banker. It was kinda pricey so I swallowed the bullet with a property manager to avoid headaches.
Investor · Hagerstown, MD · Member since 2014 · 299 posts · 140 votes
12y
@Tiffy W. Yes, I use my home address since that is also my business address. However, I don't like giving it out to tenants. May have to do something else soon.
You could install a locked drop box at the building for the tenants to put their checks in. And then drive by to pick them all up. Also you can give the property a look over while you are there. Especially if you don't drive by often.
Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
12y
@Tiffy W. I absolutely recommend having a PO box for rent checks. My first line of accepting rent is through ACH payments online. Some tenants won't use it, so some deposit straight to my account. I don't like that because then I have to match up the amounts with who pays what in rent. Lastly, I accept checks through the PO box. I don't like tenants dropping off checks to my house, but some do it anyways. I've been caught in my PJs, chasing my kids around in the front yard, drinking with a neighbor, etc. It's a bit of an invasion of privacy.
Rehabber · Smyrna, GA · Member since 2013 · 864 posts · 510 votes
12y
I still get all my mail at a PO Box, but check it every month or two. Everything important to me is done online. Only government and insurance companies insist on not letting go of mail.
It's good asset protection. Hard for someone to sue you if they can't serve you. I intentionally keep mine in a different county than I live in too, just in case they do notorious serious or something.
I don't own many rentals these days, but if I did, id have one of the online pay services or set up an ACH on their paydays. If they can't do that you don't want them as tenants.
Involved In Real Estate · Winston-Salem, NC · Member since 2013 · 277 posts · 188 votes
12y
@Tiffy W. Since I work out of a home office (for now), I use a PO Box as my business mailing address. I also give it to tenants so they could send rent checks and any other correspondence to me. Once I gave them the online option, however, and the bank didn't deliver one tenant's check causing a late fee, they've all used the online option.
Multi-family Investor · Tyler, TX · Member since 2010 · 26 posts · 1 vote
12y
I have a PO Box that i used for that purpose and any other business mail but since converting to ACH i am not sure when its the last time I went by the post office. There are quite a few solutions out there so that even the most tech challenged person can pay electronically. I would definatley not go back to snail mail/checks again. You can offer an incentive such a discount on rent if the pay online or via bank draft. Maybe $25. tenants like the convience and they also feel like they are getting a deal. Once they get used to it they will never want to write a check again.
Real Estate Investor · Panama City, FL · Member since 2012 · 265 posts · 58 votes
12y
You can now use the address of the post office followed by unit #xxx instead of PO Box #. I'm using one now for all my mail.
Also on my rents I have all my amounts set different so that I know which unit it is. 1 may be 600.00 and the other 1 will be 601.00. Just enough so I know and can reconcile my books later.