Deposit only ATM cards for tenants / Tips

Deposit only ATM cards for tenants / Tips

Investor · Troy, MI · Member since 2017 · 57 posts · 42 votes
Hi guys, I'm a investor In Oakland county, Michigan (North of Detroit) I have 36 rental units and on the units that I manage myself I give my tenants a deposit only ATM card ( Bank of America as many as you want for free) . I give these to my tenants and they go to the ATM 24-7 to deposit there rent ( cash check or money order). And they can print a receipt ( receipt does not show the account balance and they have no access to any other ATM feature) Each card has its own # on it so I just keep track of the numbers with each tenant. It's easy. You can also set up alerts when a deposit is made. It is also possible to print all the deposits from just 1 card if needed. Only downside is it must be a full service ATM not one of the little ones in the drug store. I keep track of rents on a google sheet that totals for my year end. Adding a new sheet for each year shows my progress. I can view on my phone so I can see it any time I also keep a sign out all the time and an ad on CL that way I have a list of potential tenants if one comes up empty. This has also helped me set my price as I ask what there looking for a what price there getting quoted. My rental application is a google form that I send ( text or e mail the link) this form allows me to convert the received data to a lease and also a rent increase letter ( working on an eviction form) Electronic portfolio : I keep a scanned copy of my leases , LLC info, insurance, deeds, title work, etc . in a google folder that I can share with my bank when I'm in need of funding. Banks like this a lot ! Please share any tips you have Thank you Jeff Weaver
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Investor · Los Angeles, CA · Member since 2016 · 256 posts · 111 votes
9y

@Jeff Weaver my first thought with this method is how do you handle 3 day notice to pay or quit. If you give a 3 day notice to pay $500 and the tenant takes their card and pays $100, in the court's eyes you've accepted their rent and cannot move forward with eviction. You're leaving yourself open for a huge loophole in the landlord/tenant laws.  I suggest something like pay near me. You must have a process in place that rejects rent amounts less than the total. 

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  • Steve RozenbergPro Member
    Specialist · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    I used to do something similar to this, however I was told with all the electronic banking fraud they banks were cracking down on allowing tenants that do not have their names on the account to deposit funds. It looks like this may be their work around for this to allow them to do this still. If so then short of you getting a property management software that has this type of integration worked into it then it may be the best fit for you

  • Investor · Troy, MI · Member since 2017 · 57 posts · 42 votes
    9y
    Yes The card is actually my card(s) that I give to the tenants so in effect there making my deposit for me. I have heard of a landlord who gave there account info to the tenants and after 6 months the tenants reversed the transactions taking back all the rent they had paid in. Apparently there is some law that says if you transfer money into an account you have the right to take it back. ( maybe just Michigan) when the landlord realized it there only option was to file an evection 45 more days to get them out. And then try to collect after. Jeff
  • Investor · Detroit, MI · Member since 2014 · 360 posts · 354 votes
    9y

    I give my tenants an account number, I only allow in-bank deposits, online bill pay, or direct transfer. No hand to hand payments.

    I only have 15 units and I have some tenants pay on the 1st and others on the 15th so its easy to keep track of everyone.

  • Investor · Los Angeles, CA · Member since 2016 · 256 posts · 111 votes
    9y

    @Jeff Weaver my first thought with this method is how do you handle 3 day notice to pay or quit. If you give a 3 day notice to pay $500 and the tenant takes their card and pays $100, in the court's eyes you've accepted their rent and cannot move forward with eviction. You're leaving yourself open for a huge loophole in the landlord/tenant laws.  I suggest something like pay near me. You must have a process in place that rejects rent amounts less than the total. 

  • Investor · Troy, MI · Member since 2017 · 57 posts · 42 votes
    9y

    Mel, 

    Although I have never had that happen. I can at any point deactivate the card.  But good thought! 

    what is pay near me? 

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    9y

    I used to do this, too, but Chase terminated these cards about two years ago.  They said the only way they could continue to do them was to have the tenants name and social hooked to the card.

  • Investor · Miami, FL · Member since 2017 · 30 posts · 6 votes
    9y

    I manage 15 rentals and do the same thing as

    @Jeff Weaver atm deposit cards. I use Wells Fargo, the neat thing I ad is

    there four number address as the atm pin eg. address 2564 Broadway 

    pin # 2564 super simple that makes the card transferable, I also charge

    a fee of $50 if they lose it.

    Note if it three digits number address I add 0.

    Thank you Jeff great tips I must try the google sheet and sign out all the

    time is pretty clever.

  • Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Mel Hayes We do this the old school way - 12 pre-printed paper deposit slips. I write  the date and their unit number and the rent amount on the slip at the beginning of the year and give to the tenants. That way B of A won't accept partial payments. 

  • Investor · Los Angeles, CA · Member since 2016 · 256 posts · 111 votes
    9y

    @Jeff Weaver I guess the best way for you to handle it, would be to suspend the card once you post the notice and demand in person payment.   Pay near me is very similar to what you're doing except they can pay at 7/11, ace check cashing, etc... Imagine how you you are able to pay your gas bill at different locations.

    @Jason Hirko That's pretty cool...  I'm always intrigued how landlords/property managers collect rent.

  • Investor · Kalamazoo, MI · Member since 2016 · 4 posts · 0 votes
    9y
    I have 10 properties and I started using Venmo and it’s a game changer. My tenants that use it love that they don’t have to go to the bank. Everyone has a smart phone these days and for anyone that doesn’t know it’s a app that links to your bank account. They just transfer the money on the first and it takes one day to transfer the money from Venmo to my bank! It’s amazing.
  • Member since 2022 · 1 post · 0 votes
    4y

    Hello i would like to knownis this true because I am trying to move and the landlord ask me to make deposit at ATM for him to receive the deposit

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