Investor · Tempe, AZ · Member since 2018 · 1k+ posts · 731 votes
7y
Hi @Sara Taslitt , I wrote this on your other post but it applies.
There are two trains of thought when it comes to tenant payments:
My Way: You have a defined method and that is all you will accept. Important to tell them during the application process.
Doesn't Matter: You only care about collecting money! As long as they pay you on-time and you don't have to hassle them, any method the tenant prefers.
My personal preference is it doesn't matter, I give them 2-3 options that works best for them. I want to make their life easier so I get paid!
Here are several methods to get paid, you'll have to judge based on the class of tenants you work with:
Bank deposit: Provide them the slips and forms so there are no excuses. Instant
Cozy: Website based and specifically for tenant payments. There is a charge per transaction. I believe a 7-10 day wait period to transfer to bank
Zelle: This works with large banks (Chase, BofA, Wells Fargo). I believe instant or 1-2 days
Venmo: Phone app that is popular with younger crowds. Most of my tenants prefer this. 2-3 day period.
PayPal: Website and phone app. There is a charge per transaction. 2-3 day period.
There is also a Walmart option, however I don't know too much about that.
You people. Just...you people. Do you have actual blood in your veins?
I like cash. Hell, I LOVE CASH. I have just one tenant who pays in cash now (used twenties from a cash job) and I get all the logistical difficulties, but really...it's CASH.
In the brief interim of time between receiving my wad of greasy, stinking twenties in my hot little hand and the moment I stuff those bills into the slot of the ATM, I feel alive. That fat little envelope in my pocket brings me joy and warms the cockles of my aging heart.
Now granted, I'm clearly a lot more steeped in sin than a lot of users of this website. I've done plenty of things I'm not proud of. I found other ways than the strait and narrow.
That cash brings me back to days that might make a lot of you prim pearl-clutchers tongue-cluck in horror, but it was my youth and they were my mistakes and I own them all.
I have nothing a value to add to this thread besides putting it out there in the universe I think Jim should ghost write the next BP book.
Imagine how much more entertaining and accessible learning about dull topics note investing, raising money, or personal finance would be if BP simply had the subject matter experts write the books and sent the manuscripts over to the 'burg to get a dose of extra literary flair.
Evergreen Park, IL · Member since 2016 · 138 posts · 59 votes
7y
@Sara Taslitt we exclusively use Cozy.co. Super easy for all parties involved, just takes a while to get the money deposited, as I'm sure you have already read
Developer · Los Angeles, CA · Member since 2018 · 9 posts · 3 votes
7y
@Sergio Aguinaga
the problem with your account number is that if they ever or not paying the rent and you served in the three-day notice and they don't pay the rent and you're going through the eviction process if they make a deposit of any amount during the eviction process it's voided since you're not allowed to accept any payments after 3 days once you start the eviction process
Developer · Los Angeles, CA · Member since 2018 · 9 posts · 3 votes
7y
@Wesley W.
if you serve someone a three day notice and after three days you start the eviction process and they make a deposit into your account. it will avoid the eviction process and you'll lose out on the money that you spent with the attorney and have to start all over again
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
7y
@Steve Cohen I respectfully disagree. I had the same mistaken belief and was advised by my attorney during a previous eviction that this is not necessarily true. However, I would not be surprised for one minute if this were the case in Kalifornia.
Here is an excerpt from my lease:
24. WAIVERS: Our acceptance of rent after knowledge of a breach of this lease by you is not a waiver of our rights nor an election not to proceed under the provisions of this lease or the law. Our rights and remedies under this lease are cumulative; the use of one or more shall not exclude or waive our right to other remedies. Your rights under this lease are subordinate to any present or future mortgages on the Premises. We may assign our interest in this lease. You and we waive any right to demand a jury trial concerning the litigation of any matters arising between us. You agree to waive the right to bring a counterclaim or set-off in any action or proceeding by us against you on any matter directly or indirectly related to this Agreement or the Premises.
Obviously, check with your own local attorney and/or L/T laws in your own jurisdiction.
if you serve someone a three day notice and after three days you start the eviction process and they make a deposit into your account. it will avoid the eviction process and you'll lose out on the money that you spent with the attorney and have to start all over again
Steve, I had the same concern because I allow my tenants to deposit rent into my bank account, but I confirmed with my (very experienced) California landlord-tenant attorney that it's actually not the case.
He said if a tenant were to deposit some small/partial amount of rent into my account while they are being evicted, all I would have to do is write the tenant a refusal letter stating that I'm refusing the amount they deposited and ask them how they want their payment returned. I don't even have to include the payment with the letter. I just have to let them know I am refusing it. If they respond, pay them the money back however they requested it. If they don't respond, that's okay and that's their problem.
Rental Property Investor · Knoxville, TN · Member since 2019 · 26 posts · 21 votes
7y
Another vote here for Cozy. You can set automatic late payments. I would have tenants ask to forgive the late fee, but this way it's automatic. I don't feel like the bad guy ha ha.
I put out a mass text to my tenants and allow them to chose whatever method works for them. One mailed it, picked two up and another dropped it by my house. I will be mounting a rent box in the building this week for there convenience. As long as I get paid....whatever!
@Sara Taslitt use QuickBooks and set up recurring payments it’s only a small fee but if you have enough properties to collect rent it is well worth it and you only have to set it up once!
Investor · Southeast, MI · Member since 2016 · 425 posts · 184 votes
7y
@Jarren Campos
I subscribe to QuickBooks Online, and it includes no fee ACH payments. You can setup automatic email notifications to Tenants, and they simply click a link, input their information, submit.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
@Kenny Dahill I am not sure all your information it correct based on my experience and what these services advertise:
Cozy: Money in 3-5 days for free service (speed depends on bank) and you can speed to 3 days if you pay $2.99 per transaction. You can see when payment is sent, so it is only processing you are waiting for.
Zelle: Money arrives within minutes. It is free, but requires a bank that supports in on both sides. This is a very safe way to send money because it is bank to bank. It operates much like cash, so eliminates the concern of non sufficient funds.
Venmo: The landlord charge on this depends on how it is setup. If you setup as vendor/business then the fee is 2.9% of the transaction. If you setup as friend to friend transfer, there is a 1% (or $10 max) fee to take the cash out of Venmo into your bank account. I assume Venmo would frown on using friend-to-friend for a business. It takes 2-3 business days. You can experience "bouncing" of funds.
PayPal: PayPal owns Venmo and you can accept Venmo through PayPal. They charge vendors 2.9% of the transaction for good and services. If the sender selects "sending money to family and friends" there is a smaller charge. I believe this takes 3-5 days unless the sender opts for Instant Transfer and pays a fee.
I think Zelle is the least expensive, fastest and most secure method of all these online methods. The only draw back is that Zelle is not setup with a bill payment interface like Cozy. Cozy is structured like any other online bill payment and is purpose built for paying rent. It is also free if you are willing to wait 3-5 days and is just as secure as most other payment methods. Venmo and Paypal are less desirable due to fees and wait times.
I have used Cozy for over two years. I like the rent payment interface and the fact that is doesn't cost for the sender or recipient. You do have to wait a few days, but I have never had a payment not arrive after being sent. You can see when the payment is sent, so I know the money is coming. I can bill them for late fees or extra charges directly through Cozy. All new tenants are required to use Cozy and no complaints. No more going to my PO box or waiting on the mail.
How do you all accept applications? Do you do it online? What is the process you use? I saw that you can do it using cozy. I’ve also heard that is best to collect an application fee.
It is against the law in Massachusetts to collect an application fee.
On one of our units, we require they fill out a Cozy application before showing them the apartment, in hopes that we can separate the seriously interested from those who aren't serious. It is a gorgeous unit designed by my husband, in consultation with a local architect and lightening designer, so a lot of people just want to see it. The application process has reduced the number of times we have to show the apartment before renting it.
Cambridge, MA · Member since 2015 · 650 posts · 734 votes
7y
Irrelevant for the rent collection discussion but Venmo's friend to friend transfer is free. I use it all the time and have never been charged on either side of the transaction. I don't leave money in Venmo so it is just a bank to bank transfer. That might be the difference.
Investor · Louisville, KY · Member since 2017 · 23 posts · 20 votes
7y
@Lena S. I agree 100%
Also one nice thing I've setup is that you start the application process with the payment through zelle. That way once it its complete the rent payment method is already proven and simple to make.
Another nice thing is that you both get an email for your records, and there is not gray area if rent is on time or late.
Rental Property Investor · Tinley Park, IL · Member since 2016 · 39 posts · 53 votes
7y
Slight correction about PayPal from other posts. I have been using it for many years and it is completely free as long as your tenant sends you the money using the Friends-family option and not as a business account. I always receive the payment in 2-3 days. Tenants love it because most people already have a PayPal account set up.
Investor · Member since 2017 · 239 posts · 149 votes
7y
@Sara Taslitt hey Sara, I use Tellusapp.com so my tenants who mostly skew younger can pay on their phones. It’s also free, allows me to not have to give out my bank details and let’s me block partial payments which was important to me. I use it for several rentals, no issues so far and most importantly tenants have been telling me they really prefer it to my old methods. It generates a ledger and rent roll for you and rent receipts for the tenant.