Setting up an ACH with tenant

6 Replies

Hi All,

What is the safest and easiest way to set up an ACH with a tenant?  I'm concerned about giving them a bank account and routing number..  Any suggestions?? Thanks!

We use cozy.co to receive payments.  Everything goes through the program so that the tenant never sees where the money goes.

Kurt Phillips

    Thanks Kurt, I've been thinking I need to move to that anyway.  Do you know if the tenant can set up auto pay through cozy?

    Originally posted by @Robert Shadley :

    Hi All,

    What is the safest and easiest way to set up an ACH with a tenant?  I'm concerned about giving them a bank account and routing number..  Any suggestions?? Thanks!

     I give my tenants my bank account number and have the tenants drive their rent to my bank. You give out this info everyone you pay with a check. I don't have to wait for a 3rd party company to send it to my bank.

    I also accept Zelle which is supported by all the major banks and was already part of my Wells Fargo app.

    You can set it up where the tenant provides you with their routing and account number via an ACH direct debit authorization form. Then it would be you initiating the transaction each month. Most banks will charge a fee for this service. I use TenantCloud which is a free Property Management software for landlords with under 50 units. It is around $9 per month to utilize their online payment system with Dwolla. This has been working well as it is easy for the tenants to pay online and I receive notifications when they pay. It does take several days for the funds to settle in my account though.

    @Robert Shadley Ours is setup through our pm software. It's automatic and the tenant pays through their mobile app. I don't see their account information. Just like @John Underwood said, the account # and routing # is not a secret.

    @Robert Shadley Depending on your bank, you can ask for their bank information. All parties on the account need to sign the form before you start taking funds from their account. Hope that helps!! 

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