ACH Options for Older Tenants?

Question

I just inherited some tenants that are older and don't have email addresses. However, I really don't want to be accepting paper checks in the mail each month. I was checking out Cozy's ability to set up ACH payments, but it requires the tenant to receive an email and then fill out and authorize Cozy to take the payment each month. Is there another platform out there that would let me get around this hurdle? How are you streamlining rent collection from people that don't use the internet?

James Mc Ree · Answer

Check to see if your tenants' bank can transfer money to your account. They might be able to setup a recurring transaction in person at the bank, or over the phone, without needing an email address.

Alyssa Dyer · Answer

Man, we started running into this more lately.

It's a bit of a pain, but we've started meeting the tenants at the house with our iPad. We walk them through setting up an email, setting up their ACH, etc. *A small lesson learned, we also ask them if they want us to use a family member's email instead. We had a couple calls from elderly tenant's kids and grandkids concerned that we had access to banking information, understandably. They normally decline but it's gone more smoothly in those situations if we call the family member because they aren't caught off guard and protective.

Matt Stricklen · Answer

If your bank has a branch where they live, you could also give them some deposit slips and have them go to the bank and deposit right into your account.

Gualter Amarelo · Answer

@Jon Blackburn I have been using Buildium with all of my tenants for years.

Their tenant portal is easy to work with and even with people who are completely against using co.puters for anything they have been paying online long before covid.

Its just a matter of taking the time to train them one on one and you can even setup the automatic deposit feature for them.

Online payments have been around for a long time and if you want a good book that is slightly outdated you can check out landlording on autopilot.

In that book he talks about his training of tenants away from cash only and moving to check only. Moving away from cash/checks to online ACH has never been easier and the strategy he used with his tenants works for ACH also.

Cheers to your success!

Christopher B. · Answer

We use QuickBooks Online, and we can just enter the Tenant's account number and routing number, and that's it.  No sign-up of anything is required by the Tenant, but we do get written permission to deduct from their account, if it's recurring monthly.

Chad Hale · Answer

@Jon Blackburn Good tenants with track record of paying on time, communicating, and taking care of your property will only use that reason if it is true. Good tenants will also place a stop payment order and quickly send you another check if it is really lost.

Also rent is considered paid by the post mark date.  When you receive the payment you'll know if they were being truthful or not.

Sorry for not being more clear regarding the phone.  Most banks now have phone apps that allow you to deposit a check by taking a picture of it.  No need to go to a bank to deposit.  So not much time (less than 5 minutes to deposit, record entry, etc) is spent on depositing the check.

Dan Schwartz · Answer

You can accept checks via Stripe.  It's rather complex to do so.  Your bank's Treasury Services Department likely offers a lockbox service where they receive and process checks on your behalf.  Some people just like to send checks.

Bill B. · Answer

I echo what James said. I have yet to find a tenant’s bank that isn’t able and willing to setup up an automatic transfer from their account to mine (same bank or not didn’t matter.)  They assume it means their client will stay longer.

Chad Hale · Answer

@Jon Blackburn I hate checks in the mail and much prefer everyone pay online.  I have about 85% of my tenants doing that.  That being said, I work with good tenants allowing them to pay in legal specified terms of their lease agreement.

I would not refuse or get rid of a good tenant that wants to pay via check.  Also with the ability to deposit checks using a phone, the inconvenience is minimal.

Adam Martin · Answer

A Gmail account is free to set up as is a Zillow account.  You would probably have to meet with the tenant and help them set both up however they have recurring ACH at no cost for either of you.  It does take 5 days for you to receive the money but the bank would hold the check as well so it may be about a wash for you.  You can also give them deposit slips for your bank account and have them pay at the local branch where they can use cash, checks, or money orders.  I prefer online as you never have to worry that the check was lost in the mail however if they have been paying like this for a while and are long term renters with a good track history I may also just accept it.  Older people may be less likely to move and you may have long term renters on your hands.  I'm sure your bank has a mobile app you can deposit the check from so this really shouldn't be too big of an issue for you.

ACH Options for Older Tenants?

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