Rent Collections

28 Replies

Does anyone have their tenants deposit their rent directly at the bank? I usually either pick up the rent from their mailbox or they use the online payment service.  Well I have tenant who doesn't have a bank account and just uses money orders so I've been picking it up. Well last month "she said" her rent was stolen from the mailbox. So now I'm thinking of an alternative.  My sister in law said they just go to the landlord's bank and deposit it. Although they cant withdraw without ID, it sort of makes me nervous knowing they will have my account number. Any thoughts?

My tenants deposit at my bank, per the lease. All they need is your name. Don't  give them acct. number.

My tenants deposit directly. My bank pre-prints deposit slips that I give them to deposit directly into the account. Whether they have the account number or not makes no difference, they're not going to be able to withdraw funds without providing identification. Besides, I transfer funds out to another account once the rent has been deposited. Besides, having the account number is overrated. Every time you write a check to anyone, for anything, they have your account number. Anyone goes to a window or drive-through with a deposit slip, they are going to be on camera. You're not going to be liable for fraud.  

I do not accept rent payments by mail or in person except for first month and deposit. After that it is either deposit direct into my account or use erentpayment.com , and this is written into the leases. 

@JD Martin

Thanks I didn't realize so many use this as an option. We do have erentpayment.com though. I think we might consider going the bank route. Thanks again.

All my tenants deposit their rent at my credit union and have the teller write a memo with their address or their last name so that they receive proper credit.  It also shows the exact date the rent was posted.

I also transfer the money out the account after the deposit(s) posts.

I have one tenant that pays online using EasyRent.com

Good Luck

Yes there is.

All of my properties are paid for, with the exception of one.

After the tenants deposit their rent, I transfer all of their monies into my business savings.  I have only a small amount in my business checking account.  I save all the cashflow in my savings account until I'm ready to buy my next property.

The one with a mortgage, I pay the note, insurance and taxes,  and whatever is left I transfer to that savings account.  

That's just me, other people may have different reasons for transferring the money.

Hope that helped

Deanna

Originally posted by @Deanna G. :

Yes there is.

All of my properties are paid for, with the exception of one.

After the tenants deposit their rent, I transfer all of their monies into my business savings.  I have only a small amount in my business checking account.  I save all the cashflow in my savings account until I'm ready to buy my next property.

The one with a mortgage, I pay the note, insurance and taxes,  and whatever is left I transfer to that savings account.  

That's just me, other people may have different reasons for transferring the money.

Hope that helped

Deanna

 This is the same with me. Also, for security reasons, I like moving the money into an account no one knows about except me and the bank. 

ok thanks guys! Very helpful. I think I'm going to go ahead and try it out.

I have an interest bearing checking account and a savings account.  Tenants deposit to the savings account and write the address on the deposit slip.  After the rents are deposited I transfer them to the checking account for security reasons.  All expenses are paid from the checking account and whatever is left over will grow until I have enough for reserves and a down payment on the next property.  My tenants love it because it is convenient and they get a receipt showing they paid right away.

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@Heidi M. @Deanna G. @JD Martin

How do you know whiich tenant the money came from? I talked to my bank about it this evening  and mentioned that you all have the tenant put identifying info on the deposit slip. Although they aaid they would have them do it that way too, they said it would not show up on my online banking and if they paid cash I couldnt even see anything about the transaction. Is this just my bank?

Pearline,

I believe that is just your bank, when my tenants make their deposits they provide the teller with their address or their name.  When I login to my bank account it shows deposit the amount and my tenants address or name, and most important the date it posted.

In the event none of them leave a message in the memo line, I would know because all of my rents are different amounts.  The one tenant that pays online, it shows a deposit from easyrent.com and my tenants amount. 

If your name is on the account you should be able to see everything that happens with your account.  - Maybe you should start shopping for a friendlier bank.

Good Luck

my bank scans a copy of the deposit slip so I can see it when it posts.  I instruct the tenants to write the address on the deposit slip.  I only have two properties, but so far this has worked well for me.

Thanks @Deanna G. lol I actually started looking this evening. I love them for my personal accounts but they do not offer portfolio lending. So I've been thinking of transfering my business accounts for a little while now anyway. This rent thing just added a little bit more incentive. 

Thanks again.

Its your bank because I have had multiple accounts over time and some showed the actual deposit slip and others only showed a general ledger for cash.  Checks had a pic.

I have away around this (passing along a tip from another landlord).  Going forward, have your tenant's rent with a penny difference.  900.01, 900.02...etc if they are the same amount. 

oh, also transfer out just in case to protect the money or any possible claw back.

There is the possibility that the tenant gets a newbie teller and goes "I need to withdraw my funds but forgot my ID, but have my old deposit slip"...you never know.  I have an account at an old smaller bank and they only ask for ID if they don't remember you.

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Thanks again guys for all your feedback.  I really do like the idea of not having to worry about mailed pymts and pick ups.  I'm definitely going to try and have this figured out by the 1st. 

And there are other options too that are fail safe and you tenant can't make any excuses, if they want to pay in cash, you can setup an account with PayNearMe.com (There's even a startup special through BiggerPockets.) then every month you can send the tenant a text, email or even mail with a barcode generated through the website, the tenant goes to their local 7-11 or family dollar and gives the cash to the teller and gets a payment confirmation and the money gets deposited into your account immediately. The tenant even pays the $3.99 convienience fee!

Medium fliperkc52aa00aJames Bynum, FliPerfect | 480‑422‑4285 | http://www.FliPerfect.com

@James Bynum

 Good option for this tenant because she pays cash (well money order). When we renew her lease I think we are really going to discuss these different options because I told her I'm not picking up the rent too much longer.This month she called me at 9pm on the last day to avoid a late fee. Really? Then when I said I wasnt coming, she asked me to come by 645am before she left for work. I couldnt believe her. I just told her to leave it in the house and I went in and got it. Then I had to remind her that this was a courtesy we were providing. Sorry about the long story. All that to say, this may be good. I could just see her making the excuse that the bank is closed when she gets home. Thanks!

@Pearline Hardy , she is getting the cash to get the money order isn't she? ATM's are open 24/7 so I really don't see how that could be an excuse for her, and she can pay the rent 24/7 if there is a nearby 24/7 7-Eleven.

I think this could really solve your problem with her. And you get notified instantly when a deposit it made, and each barcode is unique to that rent payment so you know exactly what months rent they are paying and which tenant is paying what. And there is absolutely no possible access to your own bank account which is something you were worried about.

Medium fliperkc52aa00aJames Bynum, FliPerfect | 480‑422‑4285 | http://www.FliPerfect.com

I don't have a problem figuring out what is what because rent amounts for my units are different (I only have SFHs). If I had the same rent for multiple places I would have to look at the deposit images from my bank if there was any question (my bank captures the deposit image). So I just make the rent a little different.