Rent due how do you accept

27 Replies

@Leslie Mangrum I prefer NOT to do cash as I like a very tangible paper trail, but I think some people like it. We generally take the first payment in the form of a money order or cashier's check, then get our tenants set up in our property management system online and let them pay online. Most people love the convenience and ease of online drafts. :)

@Leslie Mangrum

Preferred method is PayPal. Free for tenant and landlord and most people seem to already have an account. The first deposit takes about 5-7 days to clear, but then subsequent deposits take 1 business day. I also allow personal check to be mailed since phone deposits are easy. I charge a $25 convenience fee for cash or if I have to come and collect rent. The exception is for the first months rent and deposit. I prefer cash for that.

Disclaimer: I only have one property so far. I am not affiliated with any sites mentioned.

I use Cozy.co for background checks and collecting rent.  The tenants have Cozy pull the money out of their checking account, and then Cozy puts it in my bank account a few days later.  I wrote a detailed post about it here:

https://www.biggerpockets.com/...

They did pay cash for the security deposit and first month's rent.  They asked about this ahead of time and I agreed; I printed up a receipt and then dated and signed it once I had the cash in hand.

If you use PayPal, I would highly suggest getting one of their "business" accounts.  I had to set up an account for an organization, and when I had a little trouble with it, I was able to reach a live human on the phone quickly.  I know people that have "personal" PayPal accounts that they sell things online with, and some of them have had trouble with PayPal unilaterally deciding that they are a scammer, locking their accounts, and then not responding to any questions.

We require the first months rent and deposits to be in cash. No other payment means accepted.

After that, people can pay however they like but our preference and what most use is to deposit the money into our bank account.

We won't use any payment method that incurs a fee for us.

@Leslie Mangrum

+1 for cozy

For move in & security deposit, bank check or money order are required. For regular rent, I started just taking checks by mail, then offered quickbooks payments (ACH only) and earlier this year I switched to Cozy/checks by mail.

I’m in a c class neighborhood & all but 2 of my tenants are happy to have online payments. Since switching to Cozy which gives the tenants the ability to schedule payments & setup reoccurring payments, there has been a positive uptick in ontime payments, I think the automated reminders in the platform really help.

I have my tenant go to my bank and deposit it into my account. That's the easiest way I've found! I know some banks won't allow it, but it's so easy that way. No delays, no excuses. It's either deposited by the 5th or it's not.

Any form that my bank recognizes as money. I refuse to collect cash on-site, they can bring that to me, which they never do, for the same reason I won't go and get it from them (it's a hassle). I think the folks who have markets/tenants where they can set up an automatic ACH are very fortunate and I am jealous...my market/tenants don't even have bank accounts, so it's usually a money order sent through the mail to my PO box.

@Leslie Mangrum

I don’t do cash as I like to make sure there is a paper trail. I only use Cozy. It’s free for me and my renters (as long as they use ACH) and it allows me to set an automatic late fee in case it would be needed. It also allows for one time billing if there are any random other expenses they must be billed for. I have been super happy with Cozy for managing my rentals and highly recommend it.

@Leslie Mangrum Cashier’s check, money order, personal check (until a bounce), ACH, and credit/debit. I do not accept cash. I use Tellus for management with handles the digital payments and a PO Box for paper.

+1 for cozy

Have been using cozy for a few months now to collect rent. Also used their credit and background check service and it was all very easy to use for both sides.

My only complaint is it takes about 6-7 days (not 5 as advertised) for money to enter your account.

Originally posted by @Erik B. :

+1 for cozy

Have been using cozy for a few months now to collect rent. Also used their credit and background check service and it was all very easy to use for both sides.

My only complaint is it takes about 6-7 days (not 5 as advertised) for money to enter your account.

 I feel your pain. I use QuickBooks and it takes 5 business days there too. If they pay on a Friday, it can be up to 10 days with the 2 weekends in there. Not to mention if there's a holiday in there!