I have a duplex with tenants I inherited that pay their rent in cash. The current setup is I swing by once a month to collect the rent. I'm going to have them sign a new lease, and don't want to collect the cash each month in person anymore. They don't have a PC or the ability to pay electronically. I wanted to give them some options of where they could still pay in cash, but I did not pick it up. The duplex is in Roswell, Georgia. I found a place called PayLease online that I hope to her from today. Any advice will be greatly appreciated.
There are plenty of online pay rent options for landlords that are cheap. They could mail you a money order or place it in a drop box. I never take cash. They can also ACH into your account, just have your banker help you set it up. Some banks offer deposit only debit cards.
I've never used it but I understand PayNearMe is a good option for cash payments.
Worst case have them get a money order and mail it to you.
I’ve had renters state that they don’t have bank accounts or credit cards and thus can only pay cash. In the end they all ended up paying online. You just have to stipulate that it’s part of the lease agreement. I found the last two that wanted to pay cash were actually paying some of their bills online with smart phones. I don’t understand why they resisted online pay!
@Matt Schambeau - I used Pay Near Me back when I did affordable housing. It worked pretty well.
A lot of folks will setup an account at a bank local to the property, and let tenants deposit cash into the account. They then transfer the money out right away. They basically use the account as a temp holding account only. You could try this method.
What I started doing for new tenants was to only provide an online application. I basically used this as part of my screening. If you couldn't apply online, I didn't want you as a tenant because I wanted rent paid online and maintenance requests submitted through the online portal. While this doesn't help now. But think about doing something like this for when you have to find new tenants.
Open a bank account and give them deposit slips.
Swinging by to pick up cash isn't a good idea.
Have them mail you a cashier check or they can use western union. If they want to pay in cash they can pay the extra service charge.
Only only accept mailed cashiers checks or online bill pay through cozy. No other forms of payment.
Tons of ways to pay other than cash in hand. I would avoid the "check is in the mail" route no matter what....
They can walk into just about any 7-eleven and wire you $$...... local bank drop box...... lots of other if they refuse to live in 2018 and do online.....
I use Bank of America and issued all of my tenants deposit only ATM cards. They can deposit cash, check or money order and I get the funds immediately in my account.
PayNearMe seems like a great option since it allows the tenant to pay at anytime of day or night (rather than just bank hours), which removes one more excuse. Something to consider.
Thank you everyone. Paynearme sounds like you need 50 doors to get started with them. I reached out anyways and have not heard back. I also still haven not heard back from PayLease. I don't want to do anything that involves the US Postal service...there are just too inconsistent. I like the deposit slip idea as well as the deposit only ATM cards. The thing I need to figure out with them is which unit is making the deposit as both rents are the same amount. @Derek P. @Account Closed is there a way to do the same on deposit slips? I've read about having each rent a different amount (off by a dollar). I could use that approach worst case scenario.
I spoke with PayLease today and they told me that I have to have 250 units to use their service, so that is not an option...for now:). The representative stated that some software platforms offer this as a service as part of their package such as AppFolio, Propertyware and Rent Manager, you would just need to invest in their software. I will look into that angle.
I also spoke with my bank who stated that they don't have a deposit only ATM card, but could setup/restrict an ATM card to only be able to make $1 payments. They mentioned the challenge there is preapproval at gas stations which would allow the card holder to fill the tank. She also mentioned a program name Zelle that most banks use to allow bank to bank transfers with no charge. I would probably just used COZY instead of that option if they had bank accounts. The other thing we discussed is just opening up different accounts for each unit and having giving them deposit slips for each to use to make their monthly deposits. No charge for the accounts as long as a minimum balance is met between all accounts or limit to the number of accounts I could have.
@Matt Schambeau I also use Zelle which works directly with my bank. Funds from Zelle show up immediately if the tenant uses a participating bank. And the tenant’s name shows up in the transaction description. When using the Bank of America deposit only cards each tenant gets their own card with a unique number. I am able to keep track of who is making the deposit since their card number shows up in the transaction description.
I used to use erentpayment back in the day and I have considered cozy, but I prefer my current setup since funds show up the same day. No cost for Zelle either.
I got set up with paynearme years ago. AFAIK, they don't have minimum property requirements. Currently Zelle is the easiest method.
Walmart sells money orders for like $.69. Then give them an address to send it to.
I also liked that idea to open up a bank account and give them deposit slips. That allows you the option for getting to the money electronically, and them the option for delivering the cash....and it's all documented! Good paper trail. I have an investor client who does this. She has the tenant deposit the rent into her account, and then text her a copy of the receipt.
If they don't have a PC, then none of the online suggestions will work for them. However, do they have phones? Many of the online payment options have online apps. Do they at least have a bank account? If so, Zelle uses the phone number attached to their bank account. We bank with Chase, and I can initiate a payment request to someone's phone, for them to pay me from their bank account (so many of them work with Zelle now). It's an easy process.
Put cash at your bank in your name.
Just go start a bank account with a national bank. Give them the account number. They can walk in and deposit money. You can check online if the deposits were made on time
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