Tenant Can't Pay Onliine, I Don't Pick Up Checks. Help!!!
Mil SanghviPro Member
Rental Property Investor · Atlanta, GA · Member since 2014 · 57 posts · 10 votesTenant Can't Pay Onliine, I Don't Pick Up Checks. Help!!!
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Investor · Juneau, AK · Member since 2015 · 980 posts · 741 votes
10yI am going to date myself some, but we used to have these relics called envelopes (crazy little white things)..
Google "envelope" if you are under like 25 years old. Way back in the day, we did everything this way...
How to bullet proof it for your unbanked tenants: give them SASE (this stands for self addressed stamped envelopes) for the entire tenancy. An unbanked tenant can just get a low cost money order or check and drop it in the mail. Easy.
For some reason this is the hard part I have seen in a few forums, you open the envelope (usually from a PO box ancient mail box device of some form).. take out the check and deposit it in your account (be as tech savvy or unsavvy as you like here)..
I have not lost one in a decade this way... The old late in the mail excuse is a tenant issue 99% of the time and not about the USPS.
If getting the mail is too hard, wait until you turn around a rough unit (getting rent checks is actually my highlight--easy and fun mailbox money; and I planned it out so the bank is next to the po box; even get free coffee (a dark beverage made from...nevermind..) Best of luck... and sometimes even in the high tech world, the low tech route works best for some tenants.
87 Replies
- Investor · Springfield, MO · Member since 2015 · 5 posts · 3 votes10y
Originally posted by @Mil Sanghvi:
@James Holland The tenants who currently pay via paypal do it by selecting "friends and family" so it does not charge me transaction fees. Otherwise i believe it's 2.75% and I refuse to pay those bs fees. I will have to give my account number for bank wire.
Western Union idea sounds good. Another option is PayLease. Tenant pays the bills at Walmart. I'll research both of them.
Thanks,
Mil
Open a different account at your bank and give them that account number. Then transfer the money out online after they deposit it. That way the worst they can do is mess you up for 1 month. Plus, if something funky does happen you know they were the only ones with the account numbers.
But honestly if they can meet your rent payment terms then they are probably not the tenants you want anyway.
- Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes10y
Originally posted by @Matt Motil:
is it in your lease they need to pay electronically? If so, then they need to figure it out. If it's not in your lease then I think you sound like a brat that is too good to go collect rent. Sorry if that's harsh but that's how this is coming across. This is the kind of thing that perpetuates a negative landlord stereotype.
Assuming it is in their lease, then they can go to the library and access the Internet for free and pay online.
Yours is the most important question in the thread. The lease terms really matter. Allowable rent payment methods per state law really matter. If the lease doesn't specifically require electronic payment, then the OP can't just decide the tenants must pay electronically. If he wants to change the payment method originally set forth in the lease, there are protocols for that, again per state law.
As mentioned earlier, there may be some locations where you are required to accept payments at a business or mailing address.
OP: this is what membership in a local landlord org. is for. Don't reinvent the wheel or ask on a national forum. Ask your local org. or lawyer what is acceptable for payment methods in your state and how to change them if necessary.
- Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes10y
Originally posted by @Steve R.:
I collect post dated cheques for the whole duration of the lease
it is my requirement
dishonoured cheque $50
never have late payment, do not have to go to collect them
on the first of each month just go and deposit all the cheques at once
seem to work for me
!!!??? It's lawful to collect 12 months of post-dated checks in Alberta? For reals?
- Rental Property Investor · Cleveland, OH · Member since 2015 · 1k+ posts · 880 votes10y
Originally posted by @Account Closed:
Originally posted by @Steve R.:
I collect post dated cheques for the whole duration of the lease
it is my requirement
dishonoured cheque $50
never have late payment, do not have to go to collect them
on the first of each month just go and deposit all the cheques at once
seem to work for me
!!!??? It's lawful to collect 12 months of post-dated checks in Alberta? For reals?
I have done it in Ohio too! Especially in student housing situations near universities.
- Landlord · Port Orchard, WA · Member since 2015 · 80 posts · 39 votes10y
B of A does deposit only debit cards too, to a business account.
That's what I use now, or they deposit to a teller into my account
Originally posted by @Account Closed:
Originally posted by @Steve R.:
I collect post dated cheques for the whole duration of the lease
it is my requirement
dishonoured cheque $50
never have late payment, do not have to go to collect them
on the first of each month just go and deposit all the cheques at once
seem to work for me
!!!??? It's lawful to collect 12 months of post-dated checks in Alberta? For reals?
When I was renting here, my landlord did it, and I know others do it too. I have not found anywhere info that it is not allowed.
I am not taking a pre-payment for 12 months
- Rental Property Investor · Los Angeles, CA · Member since 2015 · 7 posts · 5 votes10y
Originally posted by @Matt Motil:
is it in your lease they need to pay electronically? If so, then they need to figure it out. If it's not in your lease then I think you sound like a brat that is too good to go collect rent. Sorry if that's harsh but that's how this is coming across. This is the kind of thing that perpetuates a negative landlord stereotype.
Assuming it is in their lease, then they can go to the library and access the Internet for free and pay online.
I totally agree with Matt. In addition, you've got it easy if your only tenant issue is that you can't figure out how to make it easy for you to collect rent.
- Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes10y
Originally posted by @Chris Martin:
Originally posted by @Account Closed:
This is not legal advice but... in some places you are required to take payments in person or by mail if they are related to real estate. If you do not accepts payments in the methods listed in your lease you cannot evict for non payment.
Can you identify where this place is? When you say required, is this a law? Can you cite the law or ordinance?
What three lawyers have told me is basically the following...
The only likely challenge will come in an eviction case. There are a bunch of hurdles to get over... 1) Fair Debt Collection Practices Act 2) The Coinage Act of 1965 3) State law (In Texas Sec. 92.011 of the Property Code might be a huge problem. A judge would have to decide if the payment method was an "other traceable or negotiable instrument." Because of federal law, I am not sure the websites want to claim that status.) 4) HUD and other federal program regulations. 5) City codes. 6) Turning it into a civil case will also provide other methods for the tenant to pay via the court system.
Getting past the judge would be the hardest part. This is how it might go. Landlord shows up to eviction hearing without a lawyer and tenant has a lawyer and they claim the landlord has been refusing to take certified funds or cash. They also argue the landlord has violated FDCPA, The Coinage Act and possibly the lease. They ask that the judge to rule against the landlord and bar all future attempts to collect on the debt. Of course, since the landlord has acted in bad faith by refusing payment and then bringing legal action for non payment the tenant should get all legal fees paid by the landlord.
Do you think your local judge will evict someone for not paying if they give the money to the court within a few days of the case being filed and say the landlord is refusing payment? How much are you willing to pay a lawyer to make it happen?
It would certainly be easier to just pay a bank, lawyer, CPA, bookkeeper, or property manager to receive the checks and deposit the money.
- Investor · Corona, CA · Member since 2014 · 746 posts · 372 votes10y
Seems to me like you don't want to get paid.
- 10yRoy N.Pro MemberRental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
Originally posted by @Account Closed:
Originally posted by @Steve R.:
I collect post dated cheques for the whole duration of the lease
it is my requirement
dishonoured cheque $50
never have late payment, do not have to go to collect them
on the first of each month just go and deposit all the cheques at once
seem to work for me
!!!??? It's lawful to collect 12 months of post-dated checks in Alberta? For reals?
K. Marie:
It is both lawful and common practice in most jurisdictions in Canada. The key is that the cheque itself is not negotiable until the post-date - prior to then, it is merely a piece of paper.
Here in New Brunswick we are not allowed to require, nor accept rent, further in advance than the next rental period {so basically the current month and the next month}. However, post-dated cheques are acceptable.
Maybe it's because we collect cheques and not checks ;-)
- Investor · Jacksonville, FL · Member since 2015 · 54 posts · 6 votes10y
Truth is you really shouldnt Have any of your tenants paying electronically. I suppose the military ones would be an exception, however when a tenant can pay electronically then you will be accepting possible partial payments and when you do that you lose your ability to evict for that month. Just a thought - checks and money orders only as far as I go.
Originally posted by @Mil Sanghvi:
Is there a way for the tenants to pay rent at a store?
A couple of my tenants don't have computers and can't pay online. I will not go to the property and physically collect rent and really don't prefer mailed checks or money orders.
These are the ways I currently accept rent payments.
1. Government pays for military tenants
2. PayPal (friends and family so it's free)
3. Online on the website (Buildium)
I can tell them to deposit at the bank but don't want to give them the account number.
I've heard of "Pay Near Me" Tenants can make cash payments at 7 Eleven and Family Dollar. I don't have 7 Eleven in Phenix City AL or Columbus GA. Family Dollar may not accept rent payments specifically.
Are there any other options?
I'm thinking Western Union or Money Gram as two good options. Just curious... why don't you have a P.O. Box set up for mailed rent?
Originally posted by @Doug N.:
Originally posted by @Mil Sanghvi:
I will not go to the property and physically collect rent and really don't prefer mailed checks or money orders.
I can tell them to deposit at the bank but don't want to give them the account number.
Are there any other options?
You can try:
a) carrier pigeon
b) catapult (check city code)
c) divestiture
Let us know what you decide!
I'm still laughing at this one :)
Milan, as others have said, just be sure to include the rent payment method(s) in your lease.
- Real Estate Investor · Lakeville, MN · Member since 2008 · 153 posts · 17 votes10y
My apologies because I have not read through every post on this thread. So someone may have offered this before.
For my tenants that want to pay cash, I give them a debit card to my account. I have the bank set the max withdrawal amount at $0 so they can only deposit money. Then they can go to any participating ATM and deposit their rent each month.
I make the PIN for their card the address number of their unit. That way they can't say they forgot their PIN (they still do say it on occasion). I also move the funds from that account into another account so they don't see much of a balance in the account.
When I sign a lease with them I print out a list of participating ATMs from the bank's website so they can't say 'I don't know where to go'.
This also helps satisfy my state's requirements for providing a receipt for tenants who pay in cash.
Generally I don't encourage this. I use the Buildium website to get my tenants to pay online as much as possible.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes10y
Have them mail to your office or P.O. Box.
- 10yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Janne Zaccagnino have to be careful giving out your account number and letting them do their own deposit.. .not for what you think IE theft... but in Oregon for instance if you are having a problem with a tenant and say they owe 1000 in rent and they make a deposit in your account for 500.... its deemed accepted and you have to start eviction all over again.. very cunning little trick professional tenants use in Oregon.
The idea that not every single US citizen does not have a checking account is totally lost on Australians who do everything electronically. big learning curve that so many US citizens cannot get a checking account because they bounced to many checks. or your undocumented folks who can't get one.. or do n't trust banks.. :)
In Oregon the bigger apartment complex's will only take personal checks if you can't get one they won't rent to you.
Have a sub-account linked to you primary bank rental account.
Give then deposit only privileges with the account number and name it "123 Main Street"
Provide the closest branch address, phone and biz hours on your Notice of Rent Payment Instructions amendment to rental lease agreement.
Spell out you policy in that sheet: I.e., Rent is due on 1st, late payment applies on 4th, 3day notice (and charge) goes out on 8th.
You check your online bank account on 1st and 4th. Money is either there or not.
Transfer money to main account to prevent inadvertent disclosure of balance of funds.
Take David Tilney rental course. Also Fixer Jay Decima's Tenants and Toilets.
- Pasadena, CA · Member since 2015 · 2 posts · 0 votes10y
Hi,
I just learned about this recently. It might not be applicable to this particular post, but another option is Chase Quickpay. There are no fees and instant transfer of funds. Anybody with a Chase account can send money to anybody else with a Chase account. All you do is provide them with your email that is associated with your Chase account. I've used this with friends & family instead of Paypal. Works great.
P.S.: I'm not a Chase stockholder, just thought it was a cool solution.
Cheers,
-M - Investor · Spring Grove, IL · Member since 2014 · 21 posts · 5 votes10y
I respect the fact that you don't want to disclose your dispersement account number to the tenant... Same as Parker Detweiler, If you have a dedicated account, they are the only ones that make deposits into it and then as soon as they make a deposit transfer all of but $5 out. You have your money, they have the convenience, they can't make withdrawals. Problem solved.
The other thing that has worked well is a Chase Bank "Quick Pay". The tenant doesn't need an account that they deposit into. They just set up a quick pay account (FREE) they like that part, Chase does the rest of the work. They don't allow cash, which sucks, but I have tenants 7 states away and these 2 methods have worked for me for about 6 years or so. No real problems. Late payments of course, but that is just part of it. Best of luck.
- Littleton, CO · Member since 2014 · 195 posts · 72 votes10y
If your tenant has a checking account, you could suggest to them to go to the library to use one of the computers there to set up or to pay their rent monthly using your account at Buildium.
Does Buildium have an app for smart phones?
If your tenant still wants to send payments in the mail, go get a PO Box in your business name. That way, they will not have your home address, or even your full name.
If this continues to be problem, you can alter your Tenant Lease contract to state that you only accept rent electronically.
- Lacey, WA · Member since 2011 · 48 posts · 8 votes10y
I'm looking into this right now. I've been picking it up the last few months. I tried giving them deposit slips but have had some difficulty. "I don't know where the bank is"which is a solvable problem. My biggest concern with the deposit information is they'll have the ability to make a partial payment. I'm looking into paynearme and paylease. From reading this, I should just old school it and create a PO Box, give them preaddressed envelopes, and go to the box on the due date.
- Lacey, WA · Member since 2011 · 48 posts · 8 votes10y
https://www.biggerpockets.com/forums/52/topics/222...
This thread was awesome. Great resource. - Los Angeles, CA · Member since 2014 · 352 posts · 142 votes10y
Have you checked with your bank about accepting rent checks (with a pre approved deposit slip? An email will be shot out to you as soon as the money hits.
Wells Fargo will allow you to have them come in with a deposit slip to pay rents. I don't see too many branches in Atlanta though.
I would look your bank. Specifically check out the closest branch (to your rental) and have them set a simple system (pre approved deposit slip) up for you. They will be only too happy to assist you.
And selling point to your tenants? They too benefit by becoming regular faces at this particular branch. A time will come when they'll need a friendly face to vouch for them when the time comes for them to seek financial services. And bank hours shouldn't be an issue. I'm sure a deposit box type arrangement can be arranged or they can always go in on a Saturday, pay their rent and make friendly with their local bankers. Give it a shot!
- Real Estate Professional · Dayton, OH · Member since 2015 · 423 posts · 187 votes10y
You certainly have enough ways for any tenant to get rent to you. You are not a babysitter, and you do not work for them.
Be kind, but let them know the date the rent is due, and they have the responsibility to get it to you in one of the ways provided. If they don't know about those ways, then they will have to learn.
"I don't know how to pay on line, blah, blah, blah..." is all a smoke screen. If they discover they can work you, they will keep on working you. Next month, it will be some other reason the rent is late that is somehow your fault and not theirs. Let them know that rent not received on time is late and subject to a late fee - no excuses.
For example, they can buy a prepaid Mastercard or Visa (gift card) and pay on-line that way from any library.
The point is, it is their problem and keep it their problem. They are responsible for getting you the rent. You are not responsible for picking it up. They'll test you one time. When you sock 'em with a late fee and make it clear you won't tolerate excuses, you won't get any. You'll get your rent on time.
- Investor · Atlanta, GA · Member since 2014 · 389 posts · 250 votes10y
Wal-Mart (which is for sure in Columbus, probably Phoenix too) has a card with American Express called Bluebird - one of the ways to load the card is by taking cash to WalMart and doing it at Customer Service or even at a checkout line. If you set up the account, you could move the rent money out of the Bluebird into your rental account and the tenant doesn't have your bank information or even the ability to login to Bluebird online. If you don't move money until the total rent is there, no claims of partial payments can be made. Probably a lawyer should look over the plan, but it's an idea.
Whenever you make an arrangement with a tenant for a payment plan, write an addendum to the lease and both you and the tenant sign it. And fix up that lease for the next time, now. Everything, always, in writing!
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