Rent collection method

6 Replies

Good morning everyone,

I am struggling to find a good way to let my tenant pay his rent. It's a single family house with a tenant who doesn't have a bank account, doesn't use smart phone nor computers. What are my options except for driving to the property and collect myself?

I don't want to give him my bank account name and routing number because clearly that's all you need to pay other bills and stuff.

I am so struggle with it! 

Thank you for your ideas. I would really appreciate them all. 

Tell them they either join the real world and set up a checking account to send you checks or have them mail you a money order every month. Never ever get into the habit of being at a tenants beck and call to pick up your own money. That is very unprofessional.

It is a tenants responsibility to insure their landlord is paid in full and on time every month.

Most banks offer a deposit car It looks like a debit card but only deposits are allowed Your bank account number is hidden 

@Ann Horlacher  I see you are new to Bigger Pockets. Welcome! It will help you to know there are many forums available on a wide variety of subjects. Glad you got an answer to your question, but you posted in the Renter's Discussion forum, which isn't the best fit. Many people erroneously post in the Renter's Discussion forum. 

Renter's Discussion: "This is the forum for renters who are looking for advice in dealing with their landlord. Ask questions about dealing with landlords, leases, tenant rights and other important issues."

Under the Community Tab you will find Forum Categories and you can check them out to find the best forum for your questions. You may find the Landlord Forums and Rental Property Questions most helpful. Also, Do It Yourself.

Also, many questions, including yours have been asked and answered many times in the forums. If you use the search box and type in a key word, you can often find these previous discussions and find the answer to your questions.

When you get a chance, please complete your profile and choose a good photo of yourself, it will make networking easier for you. Again, Welcome! All the best to you! Perhaps I'll see you in the Landlord forum!

If you bank with a large bank with multiple locations around your rental, you can ask the tenant to get a cashier's check and deposit it directly into your account. We bank with Chase and provide a deposit slip with the tenant's name and our bank account info completed. When they make the deposit, I can see which tenant it belongs to, based on the name I wrote on the deposit slip. It has worked seamlessly for us.

Question #1: Did you inherit or place this tenant? If you placed them, why did you place a tenant that doesn't want to join the real world and pay the way everyone else pays? Either way, learn a lesson from this and only place tenants who pay on your terms. If you have a lease (highly recommended, whatever the length you want to make it), specify in your lease how you are to be paid. We allow for two different electronic payment platforms as well as direct deposit into a local business bank account. Anything else is considered unpaid and will be treated as such; we don't send anyone out to knock on doors to collect cash, checks, money orders, or anything else. We don't deposit checks or money orders ourselves. We make it clear to all tenants that these are the acceptable payment methods, and they are free to rent somewhere else if they don't want to use one of them. 

Beyond that, we provide deposit slips for a business account for those Luddite tenants that have no other way of paying. So far, we haven't had any tenant slip from electronic payment into depositing it into the account, so at this time we don't have a single tenant who pays this way. 

Having your account number & routing number doesn't allow someone to just draw money from your account. If it did, the amount of fraud would be absolutely rampant, as anyone that receives a check from you or obtains any of your deposit slips has all of this information. 

Money orders are an option. Postal or other wise. Tenants pays a small fee which turns the cash into a check, makes them out to you
and drops them in the mail. I have maybe 75 tenants that use these, nonissue other than you can't deposit them with your phone or scanner.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.