Rent payment direct deposit

Rent payment direct deposit

Member since 2009 · 66 posts · 2 votes

Hi,

Does anybody get rent payment as a direct deosit from their tenants? Is it a good idea?

Somebody offered to pay their rent as a direct deposit into my account.

Thanks,
Julia

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Real Estate Investor · Milwaukee, WI · Member since 2008 · 1k+ posts · 671 votes
16y

Mike from what you have said about your tenants, they are likely not smart enough to be white collar criminals.

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  • Real Estate Investor · Chattanooga, TN · Member since 2010 · 151 posts · 59 votes
    16y

    A friend of mine that manages over a 100 units only accepts direct deposit or deposits to his bank. He actually gives them deposit slips and makes them drop it off at the bank!

  • Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
    16y

    Jennifer, good point about accepting partial rent. I'm not sure how it works in FL yet, but in NJ the tenant must pay all past due amounts, including late fees and attorney's costs, to stop the eviction. Partial payments won't stop it, although I'm allowed to collect them up until the court date.

    My FL tenants have the account number and deposit slips for a business account with about $5 in it. On the first of this month, I checked the account online after texting the tenants to make sure they were going to the bank. They did it after work. It was a 10 second process to check my account online, which I do at least once a day anyway.

    I just read a little about ClearNow and it might be a good way to go when I have other tenants.

  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    My rents are all in, all checked on and now transferred safely to the entity accounts. Just waiting for AUGUST rents now. I've had zero problems with this. Rich

  • Roswell , GA · Member since 2014 · 1 post · 0 votes
    9y

    One issue to be concerned about regarding direct deposits depending on your state, if you initiate a dispossessory action, a clever deadbeat tenant can deposit $1 just before the hearing and that can nullify the eviction process so that you have to start over from scratch. I witnessed it in a courtroom.

  • Investor · Rocktown, IL · Member since 2012 · 238 posts · 69 votes
    8y

    I was reading this older thread as I'm thinking of setting up a direct deposit option for my tenants.

    Any further thoughts by anyone as to the last comment above?  That is, several have noted that in some states, the tenant could deposit a partial payment, and since it's automatically "accepted" you could potentially be out of luck on eviction processes, etc.....?

    In the lease I use I have a Partial Rent Payment clause:  "It is agreed that the acceptance by the landlord of less than the full amount of rent due and owing shall not serve to prevent the Landlord from filing a summary ejection for any balance still due and owing." 

    Seems like I'm covered.  Yes / no?

    Thank you in advance,

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