Los Angeles, CA · Member since 2014 · 352 posts · 142 votes
Does anyone have their tenants pay rent using a pre filled out deposit slip at the the bank? Exposing the account number is the number one red flag. In this regard, thelocal branch manager suggested setting up a separate business account to use for tenants rent check deposits.This way the main checking account isn’t exposed.
The goal is cut out using a drop box and also save tenants the addition ACH or credit card charges.
I use this method for all my properties. The tenants go to chase and deposit into the account number I provided them.
In theory their is no risk with giving them your account number as the number is already on every check you write. But if you want to be extra careful just open a second checking account. Honestly this is small potatoes don't spend more then 5 mins over thinking it.
I use this method for all my properties. The tenants go to chase and deposit into the account number I provided them.
In theory their is no risk with giving them your account number as the number is already on every check you write. But if you want to be extra careful just open a second checking account. Honestly this is small potatoes don't spend more then 5 mins over thinking it.
If you do this be sure to check your balance on a regular basis to make sure they are paying the rent on time. Without them getting timely in their face reminders they may discover you aren't checking and then intentionally be slower and slower. Other than that, it seems to work well.
It can also become an issue if you are preparing for eviction and the tenant deposits $10 just before court then comes in with the receipt. This can delay the eviction because some judges will accept the partial payment as proof they are trying and you get to start over.
Thanks for your input. I tried not to spend 5 minutes on this (which is why I've taken so long in responding). Reading the post by @Kathy Johnson gave me serious cause for pause. That was an angle I hadn't thought of so thank you Kathy for that input.
@Jeff Keller I also did some research and I am going to go to my branch and see if they'll accept deposit slips with the only the last 4 digits on the slip. I am told they should be able to find my account that way. We'll see.
I also found out that Experian recommends tenants using a couple of online rent paying systems that help improve the tenants credit score. This encourages tenants to pay onetime and have their early payments marked in the positive credit column.
They are......
PAYLEASE
PAYYOURRENT
RENTTRACK
CLEARNOW
eRENTPAYMENT.
I think I'll post a new thread asking what people's experiences are with these payment systems.
Seriously man...don't worry about giving your account number out. You've given it your pizza man a dozen times already!
Your bank is liable if they allow someone unapproved to remove funds from your account. I have at least 55 or more of my 64 tenants paying this way and I pay 16 private notes myself this way. I also pay my cleaning lady and my maintenance guy occasionally by depositing into their accounts.
I give them 2 or 3 slips at the lease signing and then it's on them to write their name or address on the deposit slip. Occasionally I get someone that forgets but it's usually not a big deal to figure out who it is.