Issuing rent receipts for rent payments?

Rental Property Investor · Plainfield, CT · Member since 2014 · 60 posts · 43 votes

Hello. What are your thoughts on mailing a receipt every time rent is received? I have a resident complaining that I don't mail one after explaining that her cancelled check or money order stub is proof of payment. I own 37 units and never had this issue before. Thanks

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Jim Adrian

Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes

10y

I put a clause into the lease that the cancelled check is receipt and if cash is provide a written receipt will be provided. I do make a receipt each month and put it in the file for my record. I can understand wanting a receipt as some people get paranoid. Tell her she can stop by and pick it or you will mail them quarterly.

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Jim Adrian
Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
10y
I put a clause into the lease that the cancelled check is receipt and if cash is provide a written receipt will be provided. I do make a receipt each month and put it in the file for my record. I can understand wanting a receipt as some people get paranoid. Tell her she can stop by and pick it or you will mail them quarterly.
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Dan Denton
Investor · Olympia, WA · Member since 2015 · 24 posts · 14 votes
10y
I have never been asked to provide a receipt as a land lord, but I did receive them from one property manager I rented from (when I paid at their office).
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Frank Dimino
Rental Property Investor · Rochester, NY · Member since 2014 · 55 posts · 21 votes
10y
If it's cash then you need to right a receipt, a check they can verify and they also have a stub from a money order. If the have a PC just scan the receipt and email it to them.
Or tell them they can pick up a receipt each month of they want.
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David M.
Investor · Cincinnati, OH · Member since 2014 · 61 posts · 35 votes
10y
With 37 units, you don't have digital software like Buildium that can be set to automatically email a receipt?
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Mike F.
Investor · Denver, CO · Member since 2015 · 570 posts · 521 votes
10y
A cancelled check is a receipt.
The evidence you're doing it right is there are 36 other tenants who agree with you.
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Bill Couture
OP
Rental Property Investor · Plainfield, CT · Member since 2014 · 60 posts · 43 votes
10y
Thank you everyone for your input. Dave, I do use Buildium but unfortunately a good percentage of my tenant base doesn't use email. I've decided to stop taking cash and if someone needs a receipt, I'll simply mail one. I'd rather play nice in case it comes to eviction and the tenant starts complaining about proof of payment.
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Linda Liberatore
Real Estate Investor · Schaumburg, IL · Member since 2014 · 76 posts · 30 votes
10y
Bill,
We have suggested residents take a cell phone image of the money order and/or check for their records and if they prefer text us and we can confirm once received. We agree no cash in any area. I have been to many local and National REIA meetings where police who are landlords share too many stories and strongly discourage cash as an option at many levels.
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Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
10y
Originally posted by @Bill Couture:

Hello. What are your thoughts on mailing a receipt every time rent is received? I have a resident complaining that I don't mail one after explaining that her cancelled check or money order stub is proof of payment. I own 37 units and never had this issue before. Thanks
In my world, it's very simple. The correct customer service answer is to send this one tenant a receipt for each of her payments.
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Jeffrey H.
Houston, TX · Member since 2015 · 512 posts · 338 votes
10y
We have some people paying cash still, and have them deposit the money directly into the property's account at the local bank. The bank can give them a receipt. Not sure if your 37 units are in one town versus several, but could work for your situation.
Some of the big box banks (e.g. Wells Fargo specifically) are starting to disallow cash deposits unless you're named on the account, so we have started moving to mid tier and community banks for this purpose.
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Wade Sikkink
Real Estate Investor · Lincoln, NE · Member since 2013 · 584 posts · 353 votes
10y
Check your state laws. Here in NE the landlord tenant act specifically states that landlords are not required to provide receipts for rent payments. You can do it if you want to be a nice guy, but odds are that you are not legally required to do it. We had a tenant a while back that wanted to pay in cash and wanted a written receipt every time. I finally told her that we won't accept cash and per the lease her payment has to be mailed to our PO box. I will not be providing a receipt. With 37 units you don't have time to do that kind of stuff. There are many options mentioned above for tenants to show proof of payment if they want it.
Good luck!
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Jeff B.
Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
10y
I'm up front when we sign the lease "I DO NOT SEND RECEIPTS, your check return is your receipt".
For cash deposits with first month's rent I do, but re-enforce the above. If they pay by cashiers check or money order - - that's their choice.
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Stone Teran
Investor · Cincinnati, OH · Member since 2015 · 374 posts · 120 votes
10y
I always give a receipt if they pay cash. If they use other means, I default to no receipt unless they specifically ask for one in person when paying. I refuse to mail receipts because it's a big hassle.
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John Clark
Investor · Pinckney, MI · Member since 2015 · 95 posts · 24 votes
10y
Would a text message to the tenant be acceptable? "hi tenant, I received you March rent payment. thank you." Or something like that.
Some of my tenants deposit cash into an account I have set up at a local bank. The bank gives them a receipt, so no problem there. As for people that pay with check, like others, the canceled check is their receipt. Of course, some/most banks no longer send the deposited checks back to the owner. That's because they can be viewed on line, front and back of the check. But they are only available to view online for six months.
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Jim Adrian
Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
10y
I would bet this tenant had trouble with a past landlord claiming she didn't pay or on time or something like that. She wants record she paid and paid on time to cover herself. She may not want the landlord to come back and say she is late using a bank posted date which could be days after rent was delivered to the landlord or something to this effect.
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Jim Adrian
Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
10y
@John Clark
In general a text message will not hold up in court where a paper receipt would. A judge will say, you cant prove who was the real person sending it. Been down that road before.
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John Clark
Investor · Pinckney, MI · Member since 2015 · 95 posts · 24 votes
10y
Originally posted by @Jim Adrian:

@John Clark
In general a text message will not hold up in court where a paper receipt would. A judge will say, you cant prove who was the real person sending it. Been down that road before.
Interesting. Would an email hold up?
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Jim Adrian
Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
10y
@John Clark
Yes, but I don't remember the reasons why email do. It has something to do with emails being the new version of a written letter. To me they are one in the same but not in the courts eyes.
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Stephen E.
St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes
10y
@Wade SikkinkIt is interesting to hear that by law in NE landlords do not have to provide rent receipts. Here in Ontario the relatively pro tenant Residential Tenancies Act says that rent receipts have to be provided to tenants on request. The Act goes into great detail specifying that the receipt must bear the landlord's name and address, the address of the rental unit, the amount and period which it refers to, tenant's name, etc., etc. In theory they could all of a sudden request such receipts for every month of their tenancy, however long that might have been. Quite a potential administrative burden for landlords.
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Wade Sikkink
Real Estate Investor · Lincoln, NE · Member since 2013 · 584 posts · 353 votes
10y
@Stephen E.that is interesting. That's why my first sentence advised checking local statutes. There are many commonalities in real estate law, but there are also many, many local differences.
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
10y
Ok, the easy answer? Stop accepting checks directly in the mail. Either go electronic only, or provide a local bank account wherein she can make the deposit and get her own receipt from the bank. I can barely believe anyone even takes checks in the mail anymore. I can't remember the last time a tenant even asked if I would take a mailed check ( which I don't allow anyway as per the lease).
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Bill Couture
OP
Rental Property Investor · Plainfield, CT · Member since 2014 · 60 posts · 43 votes
10y
Thanks everyone for your input. JD, my rentals are located in a "blue-collar" area where the tenant base is not particularly savvy in regards to electronic payments. I'd love to have the electronic only option, but as sad as it sounds, a significant percentage of the tenants don't even have a checking account. The problem I have with the thought of having a tenant deposit rent into a local bank account is what they could potentially see on the receipt. I used to make payments on a private note by depositing a check into the note holder's checking account and probably 30% of the time, the teller would print the account owner's balance on the receipt. Plus if the teller isn't doing their job, the tenant could have the ability to pry for personal information associated with my bank account. I worked in bank management for 7 years and I've seen it all.
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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
10y
My bank, the only info that shows on the receipt is the last 4. I transfer all funds out of the account, so there's nothing in there. And I don't see having the account number any different than giving someone a check ( or the deposit slip).
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Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
10y
Bill, Wells Fargo Business Deposit Card is one solution. All major banks like Wells Fargo, Bank of America, and Chase offer deposit cards as an option when a business account is opened. With WF you can order more. At least we have. We have 11 tenants using them.
1 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
10y
It is not your obligation to send a receipt.
0 Reply
Samuel Sedore
Real Estate Agent · Kitchener-Waterloo-Cambridge, Ontario · Member since 2013 · 408 posts · 90 votes
10y
Originally posted by @Stephen E.:

@Wade SikkinkIt is interesting to hear that by law in NE landlords do not have to provide rent receipts. Here in Ontario the relatively pro tenant Residential Tenancies Act says that rent receipts have to be provided to tenants on request. The Act goes into great detail specifying that the receipt must bear the landlord's name and address, the address of the rental unit, the amount and period which it refers to, tenant's name, etc., etc. In theory they could all of a sudden request such receipts for every month of their tenancy, however long that might have been. Quite a potential administrative burden for landlords.
Hey Stephen
Whats your experience with just writing a one big receipt, I have done that in the past with no issues, IE Jim Smith lived and rented my unit at 123 Fake St Any town from september 1st 2010 until September 1st 2013. renting at a monthly amount of xxx Paying a total sum of 30,000$. Something along those lines
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