how should the tenant pay you?

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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
10y

Electronic or tenant directly deposits the funds into my business account set up for such purposes. No cash, no checks, no money orders come to me. My leases require payment through one of two different electronic formats (Cozy or erentpayment) or the aforementioned deposit. People who don't like it can sign a lease with someone else. My experience? People who don't have means to pay in this manner are not the tenants I want anyway. 

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  • Jennifer L.
    Investor · San Jose, CA · Member since 2015 · 246 posts · 183 votes
    10y

    I used to accept checks that were delivered to me.  I now get my payments via ACH transaction.  I'm not sure what your options are in BC, but i'm sure there is an online banking option there.

    0Reply
  • Patrick Ryan
    Real Estate Agent · Minneapolis, MN · Member since 2016 · 52 posts · 37 votes
    10y

    My favorite way to collect rent is via Wells Fargo SurePay. Its a free customer to customer transfer. Its nice because it creates a paper trail for you. 

    1Reply
  • Patrick Ryan
    Real Estate Agent · Minneapolis, MN · Member since 2016 · 52 posts · 37 votes
    10y

    My favorite way to collect rent is via Wells Fargo SurePay. Its a free customer to customer transfer. Its nice because it creates a paper trail for you. You can ask people to set up automatic bill pay too, that way you get a check every month and the tenant doesn't have to do **** because its automated 

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  • Stephanie Hardy
    Las Vegas, NV · Member since 2015 · 123 posts · 34 votes
    10y

    @Patrick Ryan I'm trying to figure out an ACH system right now for our first rental. Is the tenant able to set up automatic payments via the Wells Fargo SurePay? Is it difficult for them to get set up paying that way? Have you had any tenants not want to use that system? Thanks!

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  • Alan A.
    Real Estate Investor · Orlando, FL · Member since 2014 · 30 posts · 6 votes
    10y

    I've started using Google Wallet, and I love it. 

    1Reply
  • Tajinder Kandola
    OP
    Surrey, British Columbia · Member since 2016 · 68 posts · 2 votes
    10y
    How about direct deposit every month?
    0Reply
  • Nathan MillerPro Member
    Property Manager · Grants Pass, OR · Member since 2009 · 429 posts · 201 votes
    10y

    My preferred method for tenants to pay is via ACH.  It's the same system used by banks to collect mortgage and car payments and it's widely available and super easy to setup for any landlord now.  Not only is it more convenient for the landlord and the tenant, but our data proves it decrease vacancy rates too because you have longer term, happier tenants.

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    10y

    Electronic or tenant directly deposits the funds into my business account set up for such purposes. No cash, no checks, no money orders come to me. My leases require payment through one of two different electronic formats (Cozy or erentpayment) or the aforementioned deposit. People who don't like it can sign a lease with someone else. My experience? People who don't have means to pay in this manner are not the tenants I want anyway. 

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  • Adam Swift
    Contractor · Raymond, NH · Member since 2016 · 13 posts · 4 votes
    10y

    Great Question I for one when I first started collecting rent it was in person either cash or check but since I have gone to ACH thru a third party I use.  One this makes it easier for me and not having to show up to collect rent and also easier on the tenant. As JD Martin said if the tenant doesn't have a established account to do this makes you wonder how they manage there money.  And allows landlord an tenant to go about there lives without having to take time out of there schedules to pay or collect rent  

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  • Tajinder Kandola
    OP
    Surrey, British Columbia · Member since 2016 · 68 posts · 2 votes
    10y

    i believe we don't have that in Canada. Would  online transfers or e transfer work? Can a Canadian BP answer this question Thank you Very much!

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  • Tajinder Kandola
    OP
    Surrey, British Columbia · Member since 2016 · 68 posts · 2 votes
    10y

    very new! as i do not know much and that is way experienced people like you help me!

    0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    10y
    Originally posted by @Account Closed:

    @Jd Martin If the tenant asks you to take a money order, and you say no tenant could sue you for not taking the rent money and the chances the judge will rule in favor of the tenant. You must be new in the landlord business.

     Hehehe. I wish. I've been involved with real estate as a landlord, builder and flipper for 25 years. Laws vary from state to state and country to country, but if there's a lease in my state, and there's nothing illegal in the lease, the lease is king. Maybe you have to put up with whatever shenanigans tenants want to use in Florida, but here in Tennessee a landlord has every right to prescribe how and where they will be paid, just as the tenant has the right to not sign the lease. How about in good old Florida if your tenant wanted to pay you in pennies - do you have to accept? That's more proof of legal tender than a money order. How about if they wanted to come to your house every month at midnight to pay you in person with said money order- is that acceptable? How about your creditors - do you get to tell Visa how and where you'll pay them, or do they tell you? 

    PS: A tenant can sue you for anything. I don't walk around worrying about what a tenant will do. Besides, my leases don't say I won't accept a money order; re-read what I said ("No checks, money orders, cash come to me") - it says that if they don't want to use electronic payment, they have to deposit funds directly into my account. 

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    10y
    Originally posted by @Account Closed:

    @Jd Martin Good luck and you will need it when you cannot get tenants.

     :) I'll think of you every time I have a vacancy. Oh, and all of my tenants pay electronically. They actually like it. But my tenants also manage to keep a bank account and don't have to go to Walmart to cash a check. 

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  • Danielle Fattizzi
    Wholesaler · Saint Augustine, FL · Member since 2016 · 328 posts · 98 votes
    10y
    I've heard really good things about the Yapstone App. Jake and Gino recommend it on Episode 182 of the Bigger Pockets Podcast. They deal in MFR and use it to handle the large volume of tenants rent collection.
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  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    10y

    I require all payments of first month rent and security deposit in cash. (green stuff)

    After that, I'll take a personal check, bank check, money order, cash or direct deposits into our rental account.

    I give our tenants (local ones) deposit slips for our bank account and they can just put the money in directly. That is working well so far. One tenant sends me a bank check every month (because she bounced a check a couple years ago so that's all I'll accept)

    So to answer the question, I'll accept just about any form of payment as long as it comes on time.

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  • Patrick Ryan
    Real Estate Agent · Minneapolis, MN · Member since 2016 · 52 posts · 37 votes
    10y

    @Stephanie Hardy, They have to have a Wells Fargo account and you do too. If you both do, its super easy, and can be done right away, electronically, and free. 

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  • Stephanie Hardy
    Las Vegas, NV · Member since 2015 · 123 posts · 34 votes
    10y

    @Patrick Ryan Thanks for the response. I was under the impression that only I had to have the WF account to receive the money and they signed up just with the program, regardless of who they bank with...I guess I'll need to look more into that.

    0Reply
  • Chuck Brickman
    San Antonio, TX · Member since 2009 · 86 posts · 13 votes
    10y

    We use direct deposit or electronic transfer. We give our tenants deposit slips and electronic transfer info with the lease. Its never been an issue with any of our tenants or prospective tenants. It's much easier for us plus we have a paper trail of when the deposit was made etc.

    0Reply
  • Kathleen Leary
    Princeton, KS · Member since 2014 · 357 posts · 169 votes
    10y

    Kinda old school . . . I do not accept any form of payment from tenants. I set up an account at a bank close to each property, give the tenants deposit slips & set myself up as the only person who can make withdrawals. Whatever the bank accepts as currency, fine! I check deposit status online for each property & can print, download, etc. as needed. 

    So far, it's been very successful.

    0Reply
  • Brad Russo
    Professional · San Francisco, CA · Member since 2016 · 124 posts · 31 votes
    10y

    Usually it differs from state to state but during the recent years more and more landlords are charging rent via credit card. There are numerous rental platforms which allow to do this without going through any banking nonsense.

    0Reply
  • Mark Waldrip
    Investor · Oklahoma City, OK · Member since 2015 · 48 posts · 86 votes
    7y

    I once had a single woman who worked for a manufacturing company. She started having trouble paying her rent on time, so we talked about it. She shared that her rent took most of her first paycheck and it was hard to budget her other bills. She offered (and I agreed) to allow her work to withhold half her rent from her 1st of the month paycheck and the other half from the 15th of the month. Her company's payroll department ACH'd the payments directly to my bank account. While it took until the 15th to get all the rent, it gave her tremendous peace of mind knowing the rent was being paid each month without her involvement, and I felt better knowing I was guaranteed to get the rent without excuses, stress or late fees.

    2Reply
  • Peter Pratti
    Rental Property Investor · Knoxville, TN · Member since 2017 · 147 posts · 65 votes
    7y

    @JD Martin I like your point.  Sometimes people that have to pay with a cash payment or money order are not the ones you want anyway.  Bank accounts can be found for free and are easy to use!

    0Reply
  • Account Closed
    Investor · Columbus, OH · Member since 2016 · 139 posts · 136 votes
    7y

    I have been using Cozy for the past two years, and I really like it.

    0Reply
  • Evan Brookman
    Nashville · Member since 2019 · 110 posts · 23 votes
    7y

    I use Tellus for rent collection. My tenants pay me rent through the app every month and it's super convenient! 

    0Reply
  • Thomas Dougherty
    Member since 2019 · 135 posts · 25 votes
    7y

    I only accept online payments now since I'm tired of tracking all the payments on a spreadsheet and sometimes I would mess it up. Tellus App is my rental collection method now. 

    0Reply
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