Real Estate Agent · Thiensville, WI · Member since 2015 · 37 posts · 3 votes
How does it work to have tenants deposit directly into your bank account? There is a new law that they have to show ID and SSN? Most of our tenants are Hispanic and do not have ID or SSN. Is there a way to get around that?
Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
8y
@Jon Holdman@Ronan M. the issue with chase that Jon mentioned they stopped allowing cash deposits only applies to personal accounts not business accounts.
I had a tenant deposit cash today into my chase business account no problem at all.
Btw I believe this is now the rule for all banks related to personal accounts.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
8y
Chase stopped allowing this several years ago. Use a service like Pay Near Me if your tenants don't have bank accounts and use cash or a service like Zelle if they do have a bank account.
Rental Property Investor · Chicago, IL · Member since 2015 · 352 posts · 281 votes
8y
@Jon Holdman I have a number of folks who pay rent at Chase Banks directly into my biz account. I don't know what is required of them at the bank when they do it but whatever they do it works as I get the deposits and no tenant ever reported an issue to me doing it.
@Julia Amelyan....I bet when they need ID to buy a 6 pack of Bud they don't have a problem.
Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
8y
@Jon Holdman@Ronan M. the issue with chase that Jon mentioned they stopped allowing cash deposits only applies to personal accounts not business accounts.
I had a tenant deposit cash today into my chase business account no problem at all.
Btw I believe this is now the rule for all banks related to personal accounts.
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
8y
I have around 50 tenants that deposit into one of two biz accounts (different banks) and I pay a bunch of private notes by paying into mostly personal accounts at several different banks. I think Wells Fargo was the only bank where I have ever been asked for ID and it was only once or twice in the 3 years I’ve paid on that note.
I can see where it would be an issue at the bigger banks and less at smaller banks. I’m not sure why anyone would use Chase though. Smaller banks are so much easier to work with on the lending side once your portfolio gets past a certain size.
Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
8y
@Brandon Hicks Chase is good because their are branches everywhere! My rentals are 350 miles away from me and the local banks that are in that city do not exist where I live so if the tenants went to one of those banks I do not have a local branch I could go to. Also one of my tenants left NY and went to Florida for the winter. Guess what they can go to the local chase 900 miles away and deposit the rent. It’s a great advantage. Yes on the lending side they suck.
Blue Springs, MO · Member since 2017 · 24 posts · 16 votes
8y
I have a question concerning this topic. When one of your tenants deposits rent into your account is there a notation that you can see who deposited the money? For instance you have 3 houses that rent for $600 a month and $600 is deposited into your account, are you able to tell which tenant paid?
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
8y
Glen Whipkins
I can see the actual deposit slips with my online banking so my tenants have been instructed to write their name or their address on the actual deposit slip. It’s not foolproof as you’ll occasionally have someone forget. They’re also told to keep their receipts. It’s not too hard to figure out it when someone doesn’t write it in as long as most people are doing it correctly.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
8y
@Eddie T. It was a business account I had tenants depositing into that Chase forced them to stop. At one point I had deposit only ATM cards from Chase that tenants used. The only way Chase would let me keep those was to put the tenants on the account and have their social linked to the card. You're not the first person, though, to say Chase was still allowing it in other locations.
Real Estate Agent · Thiensville, WI · Member since 2015 · 37 posts · 3 votes
8y
I have US Bank. Thank you all for your comments. I will have to work with the bank and see why this is an issue for a business account. My tenants have been depositing the cash and putting their name and address on the deposit slips so I can match up the tenant to the amount
Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
8y
You can order deposit slips for the tenant with the property name, address or something that will tell you what property the rent is for. Wells Fargo does not put blank deposit slips in the lobby anymore to prevent fraud. If there's a problem depositing cash have the tenant get a money order and deposit it. They can get a money order without ID and I guarantee they get them all the time. Don't let their problem be your problem.
Property Manager · Metro Detroit, MI · Member since 2008 · 305 posts · 362 votes
8y
Tenants deposit rent into my Chase account . Have had a few tenants call me and say the teller denied the deposit , I told them to go back in and tell them it's a business account and it worked .
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
8y
Your bank not taking cash deposits from your tenants is much more about them not wanting to pay someone to take the money than about any law or regulation. If it is a major issue for you, change banks.
Investor · TX · Member since 2015 · 393 posts · 290 votes
8y
We are taking a trip at the end of this month and we are just going to make out a deposit slip for each house and tell the tenants to make a deposit. No more effort than bringing it to my house, and it will be a good test for when we want to travel for longer periods. My account is at a local credit union.
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
8y
Roger S.
If I read that correctly...you currently have them bringing it to your house???
You’re gonna love them depositing it at the bank and so will they. I don’t know how many tenants you have but I can’t imagine the time and hassle it would be for me and my tenants to have them come to my house. Each transaction would end up as an opportunity for small talk and for sure would lead to unnecessary requests for cash flow sucking “improvements” and so on. Not to mention that you’re possible building personal relationships that may make decisions that are best for the business harder for you to make. Those two points probably made me sound like a hard nosed slumlord...which I’m not. But I need to treat this as a business and valuing my time and nothing too close to my tenants is part of that for me.
Best of luck and enjoy your trip!
Investor · TX · Member since 2015 · 393 posts · 290 votes
8y
@Brandon Hicks, you are soooo right. Currently they drop it in our mailbox if we aren't home or knock on the door if we are. I always cringe when I hear my wife ask how things are, LOL. I don't mind a little small talk, but when they want to come in and chat, I think that's a bit much. If the deposit slips work and the credit union doesn't mind, I'll be very glad to not have them dropping by.
I still have to figure out how to make it where I know who has paid. We have 10 houses and some of them are currently rented for the same amounts. I'm think of changing that at renewal time, even if it means just raising one rent 10 bucks and another 11.
We're going to Puerto Morelos for a week, that's always great.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
8y
@Julia Amelyan You may want to look into electronic deposit through your bank. I use it and it works great. Give this option to tenants. Some do it while others do not. Good luck!
Flipper/Rehabber · Cheyenne, WY · Member since 2016 · 32 posts · 9 votes
8y
I️ used to work at one of the big banks and we were always told to check ID for any cash deposits even if into your own, unless you had a debit with a pin. It’s for anti money laundering purposes. Like others have said, biz accounts will allow them to deposit no problem, so I’d set up accounts that way because I expect other banks to start becoming stricter soon.