Real Estate Investor · Martin, TN · Member since 2013 · 4 posts · 0 votes
Ok so after a few months of collecting cash payments i've grown weary of chasing down the tenants of my duplex for their monthly payments. To that end i've recently opened a bank account that i was going to use to have them deposit payments. Then it occurred to me one glaring problem.
If i wanted to start using late fees and have it enforced automatically i couldn't do that thru the bank itself...ie have the bank say, "Oh it's after the 10th so you need to deposit rent + late fee".
So now i'm thinking a call in system like most utilities use would be the best solution to this issue. Anyone have any info on this or using such a system themselves?
If you are looking to resolve your collection problems all you really need to do is better train your tenants. It is not a landlords responsibility to pick up rent it is a tenants responsibility to insure the landlord receives the money on time.
If you do not want them to mail directly to your home set up a P.O Box and force your tenant to provide payment by money order, check etc and strictly inforce a no late payment rule. Have all tenants on M2M and tell them late payments will result in termination of the lease. Your problems will disappear with properly enforced rules.
Landlords need to be aware that payment/collection problems are caused by the landlord not properly training tenants on their responsibilities.
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
9y
I'm having success with allowing my tenants to pay by Google Wallet. They have my gmail, anyway, and I would not give out bank info. It alerts me when they've sent payment. If they pay that way, it states they must send it by the 3rd so it will clear my bank account by the 5th of each month or they will incur a late fee. It won't work if they don't have a bank account, though. Money orders work well, too, mailed to a box if you don't want them having your actual address. My lease states that if tenant wants to pay in cash, they must meet me in my bank lobby during banking hours at my scheduled appointment time, and if they do not show, they must use another method of payment, and I can rescind that payment method if they miss more than one appointment. I"ve never had a tenant take me up on it, but it clarifies that I'm not coming by to collect cash.
Rental Property Investor · South FL · Member since 2014 · 92 posts · 16 votes
9y
I agree with training your tenants on a M2M lease and enforcing that if they don't pay I have several suggestions:
Pay near me -the landlord sets up an account and links it to your bank account and deposits the money and the tenants pay at various locations using cash for your cash only tenants. The plus is there are receipts the tenant is given and you have an electronic payment trail.
You could also add ach debit that would directly pull the rent on on the 1st and deposits into your account without having to give out your account number.
Even though the chance of someone ripping you off is slim it has happened, don't take that chance.
If you're tech savvy and using a management app like appfolio those things are integrated into the software program.
No more chasing down tenants for the rent just sit back and watch the cash roll in every month.
Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
9y
@Michael Rockefeller not sure what a phone has to do with your payments. I use the ACH payment in quickbooks for some tenants. For others I use cozy.co. Both have the ability to add late charges, and both notify you when the tenant starts the transfer and then when it arrives. Quickbooks charges $0.50 per payment and Cozy is free. There are a ton of products out there for electronic rent payment. Find one you like and implement it.
Real Estate Investor · Martin, TN · Member since 2013 · 4 posts · 0 votes
9y
@Bryan O. I'll explain that....i rent in a small backwoods town and have a couple of older tenants who aren't really tech savvy. So i'm trying to make the rent payment process not only easy for me but easy for them as well. Just figured there was a simple phone in solution that they could use to call and pay with their debit cards. Thus also making those funds instantly available to my account which i like. I'm starting to guess maybe that solution does not exist... :-/
Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
9y
Have them set up an automatic ACH payment. You help them once, then they never have to figure it out. Cozy can do automated, but it may be easier through their bank to just turn it on without making a profile and such.
I'm not sure about any phone methods, so I'm no good there!