I am signing a lease with new tenant tomorrow and have to give him information about the account that he will be depositing in. I gave my bank a call and they said that it's unknown what information his bank needs from me.
What is standard process in these types of situation?
Some solutions that seem like they would work:
1. Last four of account number only.
2. Account number only.
3. Routing number and last four of account number.
I want to protect myself with giving him some information about my account. Any help would be appreciated, thanks!
I give all my tenants the name of my banking institution the accountant and routing number. This is no different than any information you provide in a check!
Be aware that if they are initiating the deposit INTO your account, they also can initiate a deposit reversal request which can extend weeks after the deposit date. In a potential worse case scenario a disgruntled tenant could have their bank try and reverse the rent payment they made, it pull it back out of your bank account.
There are several payment options to look into including paylease.com, or intuit. Or you can set it up with your bank for YOU to PULL the money from their account. I like this option as it gives you access to their bank account, but it does not allow them access to yours.
I have a checking and savings account for each property. The tenant gets the institution name, routing number, and checking account number. I place their security deposit into the account associated with the checking account. I also have another account called "rental checking" which is where I transfer their deposits. This account also becomes my spending money for the next acquisition.
thank you for the responses!
we use (and love!) paysimple for rent payments and process about 100 a month.
Allowing tenants to make rent payments directly to your bank account is great, but what will you do when they fail to pay the rent on time?
In California I serve the tenant a 3 day notice to pay the rent or quit, the notice must include the exact amount of the unpaid rent; after 3 days I can choose to file an unlawful detainer and eventually get them evicted. If the tenant has free access to my bank account and is resourceful, they can deposit $1 into that account making my notice unusable to file the UD; I would have to once again serve another notice with the adjusted balance and repeat if they pull that again...
There are two different payments you can collect with or without QuickBooks:
- -- ACH - use ipn.com .50 cent a transaction - send an email via their service and the tenant add all their contact. You do not even have to get access to their routing or account no
- -- Credit card - if you are using a software it is the same. If you are using QuickBooks and their credit card merchant service than QB will save the credit card info with the last four digits.