How are your tenants paying rent?

18 Replies

The ach service that I was using for rent payments has been absorbed by another company. Upon review of the new service, I decided to look elsewhere. I looked at Cozy but there ach payments take 5 business days to process unless you pay a fee for express service. I was getting 2-3 day service for free. Who are you using for this service?

Just started Cozy not happy with their ACH! I signed up for express pay service too

I have a few tenants they deposit rent in my account at bank’s branch 

Some mail it and others pay online. Doesn’t matter much to me as the PM companies don’t process until about 7 days into the month

I use Venmo.  Doesn't allow for recurring payments to be setup on the tenants side but is pretty quick to transfer the money to your bank.  My tenants are primarily millennials, most of which have Venmo already.   

Originally posted by @Christian Allen :

I use Venmo.  Doesn't allow for recurring payments to be setup on the tenants side but is pretty quick to transfer the money to your bank.  My tenants are primarily millennials, most of which have Venmo already.   

Same here. All of my tenants are required to pay through Venmo. Its easy and FREE.

payyourrent.com. Good customer service. They seem to be enhancing the product as well. Takes a day or two to get to my bank. 

But out of the 60+ homes I own, I would guess only about 4 or 5 renters pay with something other than the service. And for about the last 18 mos or so, I have required renters to pay via the service. Its no longer an option.

Quite honestly, all they need is a bank account to use the service. If they don't have a bank account, they are going to have payment issues anyway..........

Originally posted by @Peter Sinclair :

Cozy.. tenants seem to like it. I also use them for the background and credit check. 

Same here and really appreciate the system they built particularly for the credit and background check it seems really put together to me.

I have been using zelle the past few months.  It is free and the money is in my account immediately.  Seems like most banks use it and it is actually a preferred person to person method for some banks.

Depositing in the the local branch makes for immediate cash availability however it is not immediate if the tenants pay late (obviously). I use local branch deposits for my tenants and it works ok, however I give my tenants until the 3rd of the month to pay because sometimes the first falls on a weekend. After the third, it is an immediate $25 late fee + $5.00 per day until the 10th. At the 10th, they receive a 3 day notice.

My tenants all pay their rents at a local bank here in town. While I will accept checks, the paying of their rent at the bank is the "preferred" choice of payment in my lease.

I use the "Name Your Own" account feature at a local bank. The account is free, and I can have as many as I want. This means each property has its own account (and they allow you to name each account whatever you like, so tracking payments per home is very easy), and the teller has to put a note in with each deposit, which is the tenants name. They receive a receipt for their records, thus alleviating any payment discrepancies. Also, not waiting period for funds to pass through another company or companies (we all know how that can go) before it gets to me.

Come the first of the month (unless it falls on a non-bank day, then tenants have until the next business day to deposit) I simply log into the app on my phone and can quickly annotate who has paid.

When I meet with my lender about another purchase, rents paid is available in an easy to read format from the banks website, and available anytime with the click of a button.

Haven't had a single complaint with this approach, and I plan to make it the norm with all future tenants.

@MIchael Rickerd

We do the same thing. Individual account for each tenant at a local bank. We can see the deposits on our phone in real time. If somebody misses their payment, we send a reminder the day before late fees start. Makes us look like good guys and no question about calculating late fees.

Also helps our relationship with the local banks. If the bank provides favorable financing, we will put the operating account and the rent collection accounts at that bank. Thus, the bank gets all of those local tenants coming to their bank every month - lots of new potential customers.