We have three tenants that pay each month with cash. Prior to 2/1/18 Bank of America accepted a cash deposit directly into our property account. Now the bank will not accept cash unless the person depositing is listed on the account and presents ID. How can we accept cash and have the tenant deposit? I don't want to collect in person each month. Each deposit is less than $1,000.
Thanks in advance.
If the tenant doesn't have a bank account of their own, they'll probably need to get a money order to deposit. If they do have a bank account of their own, there's some more options that open up (i.e. Zelle, Venmo, Cozy, etc).There was a similar discussion about this recently that may provide some more helpful info: https://www.biggerpockets.com/forums/52/topics/534843-banks-not-taking-cash-rent-deposits-now-what.
PayNearMe offers a service where they can deposit cash at 7-11, Western Union and other locations. Zelle works great, though they need a bank account.
Switch to a regional or local community bank (or better yet, credit union). I'm finding a trend with the big national banks these days: decreased customer service and increased profitability for them. One of our local banks was acquired by Key Bank a few years ago, at which time I was introduced first-hand to these draconian policies.
It was a pain in the a$$, but I transferred all of my business accounts to a local credit union, but I have been extremely happy with the service they have given me and my tenants since.
Chase does not allow this either, but Wells Fargo does. It has to do with the bank's risk appetite with respect to Anti-Money Laundering regulations is all. I personally dont allow cash deposits anyway for my own and my tenants protection if there is ever a disagreement (due to traceability inherent to checks, MOs, wires, etc vs cash banknotes).
Following up on the original post. We opened accounts at a local credit union which happily accepts cash deposits. I have three cash tenants which we inherited with property purchase. They all pay on time and are good tenants, but unable or unwilling to pay with a check, money order or ACH.
Thanks for all the input.