How do your tenants pay you?

Question

My tenants currently use cashier's check or money order. Is there an online way such as cash-app or anything that will allow me to collect payments that are over 500?

David Friedman · Answer

I used to collect it in cash or check. It was nice at first to physically hold what amounted from your accomplishments. Now, all of my tenants have to deposit it direct into my Wells Fargo Account. They have no excuse not to pay, because they can drop it off at the bank in person if they don't understand how to send it using their computer.

Also, BiggerPockets has a list of online services here:

https://www.biggerpockets.com/rei/pay-rent-online-payment-tools/

Linda S. · Answer

Cozy.co is the website we use

Alison P. · Answer

@Anna Maher

Hi Anna, I use US Bank.  There is a branch centrally located in my little town, which is perfect.  All my LLC accounts are set up with them (I have a separate LLC for each rental for asset protection) so there are no fees to transfer the money.  I do use a small local bank for my loans but I don't do my day-to-day banking with them. In my opinion, US Bank has the best online banking that I have used and that's why I prefer them because I do most of my banking online.  The local banks online systems pale in comparison and are pretty clunky to use.

Unfortunately, other than writing the unit number on the deposit slip, there is not much else you can do to determine who has paid.  Several of my mobiles have different rents that were grandfathered in, so that helps, but several are on the same rent and occasionally someone will forget their printed deposit slip and just go to the bank and hand write one out and not put the unit number on.  Then it's a case of waiting until everyone has paid and do a process of elimination.  It's not perfect but it's a lot less hassle than collecting cash in person.

I don't think Cozy would work in my situation because of the different backgrounds. ie. some tenants are elderly and don't understand that stuff, I have a tenant who is mentally disabled and wouldn't be able to do it and several that are low income and like I said before, only deal in cash.  So, for now, this way seems to be the best way for my situation.  Hope this helps.

Lisa L. · Answer

@Jupshy JasminThe site is easy to use! I add bills, etc. with ease and Cozy sends the tenant an email immediately letting them know what they owe or need to do, etc., along with rent due.  I've never had any problems with my tenant (s) not paying their bill, but then again, I have class A property and a clad iron lease. However, I wouldnt hesitate to start eviction immediately should it need be. Always remain on a cordial yet professional relationship with your tenants... Good luck to you Jupshy! Try Cozy, Im sure you'll be happy!

Dick Stevens · Answer

On time!

Jupshy Jasmin · Answer

@Lisa Louise: I really appreciate your feedback. I did go ahead and set up an account.

Jupshy Jasmin · Answer

@Lisa Louise: Tell me about your experience with using their late fee and extra expenses feature? How have it work for you? Do you experience compliance issues with payment? Does the site send out automatic notifications to the tenants via phone every month to remind them of rent payment? I am looking into cozy as an option and would like to know how efficient it is.

Garry F. · Answer

I use Venmo to collect and then transfer to my operating account used solely for my rental. My rental is in a college town. I rent out each room. Average age 22. This is the easiest and fastest. It is free. Occasionally there is a parent that pays rent for their kid and Venmo is quick and simple because it is all digital transfer so none can do it from anywhere.

Anna Maher · Answer

Did you just choose a bank that was most accessible for your tenants?  We use small community banks for our lending so its not convenient for most of our tenants to drive to those banks.

Are there any fee associate with transferring funds between your banks?

Other than using deposit slips is there any way to track who is paying?

How do your tenants pay you?

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