Best ways to collect rent from tenants

Best ways to collect rent from tenants

Rental Property Investor · Orem, UT · Member since 2019 · 5 posts · 0 votes

I own a single family home that I built out a 850 sq ft. basement apt that I rent out for 3/4 of my mortgage, but I collect monthly rent via Venmo. Now, I just bought my first duplex and am wanting to structure how I collect rents so that it’s tax efficient, reliable, and time sensitive. Meaning, I want to ensure checks don’t bounce.

Question:

What has everyone found to be the best ways to collect rent from their tenants?

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Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
6y

Automatic bank draft withdrawal. (Like the gym or the utility company does.) they reach out and take the money without any action by the tenant, the money can’t be taken back, and it transfers on the 1st no matter if it’s Sunday or a bank holiday. 

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  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    6y

    Automatic bank draft withdrawal. (Like the gym or the utility company does.) they reach out and take the money without any action by the tenant, the money can’t be taken back, and it transfers on the 1st no matter if it’s Sunday or a bank holiday. 

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  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Nick Pass -  I use a property management software.  They can make an account and pay online.  Other "easy methods" for collection are

    1.) Auto ACH transfer between banks

    2.) Give them the last 4 of the account and let them take to bank and deposit

    3.) Have them mail it to you

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  • Real Estate Agent · NJ · Member since 2019 · 237 posts · 169 votes
    6y

    All of the above are good. Cozy.com is also a site free for landlords and gives tenants the option to pay by credit card as well. Only down side is it usually take about 5-7 business days to transfer to your bank account, but provides a very easy online option.

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  • Rental Property Investor · Orem, UT · Member since 2019 · 5 posts · 0 votes
    6y

    @Bill Brandt what’s the process to set up and auto pay service like that?

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  • Rental Property Investor · Orem, UT · Member since 2019 · 5 posts · 0 votes
    6y

    @Michael Ablan thank you! What’s the software called if you don’t mind me asking?

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  • Rental Property Investor · Orem, UT · Member since 2019 · 5 posts · 0 votes
    6y

    Thank you @Shain

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  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Nick Pass -  

    1.) Cozy

    2.) Buildium

    3.) Appfolio

    4.) Rent Manager

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  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    6y

    @Nick Pass

    My tenant simply, asked their bank for a form, I supplied the account number. (This was an out of state rental with a small local bank otherwise I would assume you could use a form from a big bank like Wells Fargo.)

    It’s probably the same form they would use for a forced savings plan. I coulda/shoulda made a copy of the form but it’s been years. 

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  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    6y

    @Nick Pass  This is an extremely common topic, and I highly recommend you just search the forums and read the countless existing threads rather than make another thread to add to the sea of "how do you collect rent". 

    And then when you read various services people are using, go to those service websites. Their websites usually do a great job of providing all the info you need regarding how to set up, how it works, fees, etc. :-)

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