Online rent payment not available, how do you collect rent?

General Landlording & Rental Properties
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Online rent payment not available, how do you collect rent?

Blaine Alger
Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes

Hello BiggerPockets!

I am looking at a deal right now where there is a long-term tenant in place who is an older lady. I am assuming ( although I could be wrong) she does not have the technological abilities to be able to pay rent online through a property management software.

What is the most effective/hands-off method for collecting rent when online payment is not an option? 

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Luke Marsh
Property Manager · Cincinnati, OH · Member since 2019 · 131 posts · 237 votes
6y

Hi @Blaine Alger there are definitely some PM software options out there that are much simpler to use than others. They can essentially setup auto-pay similar to their other bills. We use Innago for our property, and the tenant loves it, they are also less tech savy than the average person. I would look into some of the more user friendly PM options. Despite the risks you can always collect rent via check or cash if she is 100% against paying online too. 

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  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    @Blaine Alger I get on line payments, checks in mail, checks in lockbox, MO. I stopped taking cash. I don't care how they pay as long as they pay. 

    3Reply
  • Luke Marsh
    Property Manager · Cincinnati, OH · Member since 2019 · 131 posts · 237 votes
    6y

    Hi @Blaine Alger there are definitely some PM software options out there that are much simpler to use than others. They can essentially setup auto-pay similar to their other bills. We use Innago for our property, and the tenant loves it, they are also less tech savy than the average person. I would look into some of the more user friendly PM options. Despite the risks you can always collect rent via check or cash if she is 100% against paying online too. 

    4Reply
  • Kaelyn Motzel
    Property Manager · Houston, TX · Member since 2018 · 100 posts · 41 votes
    6y

    @Blaine Alger Check out pay near me slips. This is for tenants who are used to paying with cash. 

    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    My tenants pay one of two ways (I'm in Canada): post dated cheques (I get them for the entire year and deposit on the 1st of the month) or etransfers.  The latter are done through their bank and are easy to do.

    2Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    6y

    Open a busines checking account with the bank with the most branches in your area and give the tenant the bank account number to deposit rent directly to your account.

    NEVER PICK UP RENT! Please tell me what other business today collects payments door-to-door?

    TRUE STORY: we took over management of a property with a liitle old lady who stated we had to come and pick up rent because she was confined to a wheelchair and couldn't leave the house. Because of timing issues with the TakeOver Date and the Rent Due Date, one of our agents agreed to pick it up when they did our TakeOver Evaluation. We stressed to the tenant that this was a one-time favor. Tenant gave us a money order. When we asked how she got the money order, she stated her daughter got it for her. We told her that her daughter could drop off the rent at the nearest bank branch. She paid at the bank for over 2 years until she had to be moved to an assisted living center.

    [email protected]248-209-6824
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    3Reply
  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    6y

    You may be surprised that a lot of older people are more tech savvy than you think or they have family and friends that can help them.  You could always offer to stop by and help them set it up as well for direct transfers.  My tenants use Zillow which is free if they use their account and routing number and they have an autopay offer.  In a few minutes you may be able to set it up for them and payments will keep coming to you until you turn them off.  

    2Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    We supply deposit slips to a bank that has a lot of branches in our area. The tenants make deposits directly into our rental account. They don't have to have an account at that bank.

    2Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    I would ask the tenant what she prefers....

    0Reply
  • Blaine Alger
    OP
    Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    6y

    @Bjorn Ahlblad

    I guess it doesn’t matter at the end of the day.

    Rent man is gonna get his money one way or the other, haha.

    1Reply
  • Blaine Alger
    OP
    Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    6y

    @Luke Marsh

    Thank you for the suggestion Luke. I have not looked into any simpler management software and I guess I should have a little more faith in the tenant haha.

    0Reply
  • Blaine Alger
    OP
    Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    6y

    @Kaelyn Motzel

    Thanks for the input.

    I have not heard of that before and will take a look!

    0Reply
  • Blaine Alger
    OP
    Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    6y

    @Theresa Harris

    I really like the check idea, especially if you are dealing with an older tenant. Old people love checks, they would be all over that!

    I will check it out, thank you for your .02!

    0Reply
  • Blaine Alger
    OP
    Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    6y

    @Drew Sygit

    Great story Drew!

    Goes to show that everyone is capable of adapting and figuring out new procedures, even if it takes a little bit of encouragement.

    And anything is better than going door-to-door, picking up cash. That would be a mess and so inefficient.

    0Reply
  • Blaine Alger
    OP
    Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    6y

    @Adam Martin

    This is something that I have seen mentioned several times. I guess I should give the old lady more credit and she might be more tech savvy than I think she is. She probably know more about technology than me.

    I will give the Zillow autopay option a look, it sounds like it could be a promising solution.

    Thank you!

    0Reply
  • Chris Phillips
    Rental Property Investor · Kansas City, MO · Member since 2019 · 14 posts · 11 votes
    6y

    @Blaine Alger we had an account at a local bank (small town). We got it set up with the bank that our tenants would come and actually deposit rent directly into our checking account. The bank would give them a deposit receipt (without our account number or anything) just saying that they deposited the amount into our account. Worked pretty well. Better than cash

    1Reply
  • Jeff Filali
    Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    Bank draft 

    0Reply
  • Luke Saglimbeni
    Rental Property Investor · East Longmeadow, MA · Member since 2019 · 154 posts · 64 votes
    6y

    @Blaine Alger

    Mail check or auto payment like they do for some bills. Help her set it up

    0Reply
  • Sandy Sawyer
    Realtor · Houston, TX · Member since 2017 · 177 posts · 68 votes
    6y

    I have a 72-year-old tenant that set up automatic monthly payments through her Bank of America account. Between me and her son, we helped her go online and set it up and I receive a monthly check in the mail from her bank and there's no fee for her.

    0Reply
  • Kyle Webster
    Rental Property Investor · NJ · Member since 2018 · 10 posts · 5 votes
    6y

    Post Office certified money order - I have plenty of elderly tenants in a similar situation who pay via money order. 

    On a related note, most people have smart-phones have you explored - Zelle, Venmo or CashApp?

    0Reply
  • Blaine Alger
    OP
    Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    6y

    @Kyle Webster

    The post office money order seems like a great option for an elderly tenant. I'll look in to it.

    I have not explored any of the mobile app option. They could be a solution but i'm just making the assumption that they will not have access, so the mobile app payment is off the table.

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    @Blaine Alger maybe ask the tenant? There are lots of ways to pay rent but i would caution against helping her set up automatic payments. Might be looked at askance by elder advocates. 

    1Reply
  • Christopher B.
    Investor · Southeast, MI · Member since 2016 · 425 posts · 184 votes
    6y

    We try to keeping our payments down to just a few options, not having some Tenants using Zelle, some this, or some that. We utilize QuickBooks Online for accounting, so it accepts automatic ACH or e-check the tenants can submit payment for each month. Both show up in QuickBooks Online tied to the Tenant, for record keeping. We also accepts checks, and thats it, but none of the tenants send checks. All, both younger and older, use one of the two options above.

    If you have property management software, it might offer the same options.

    0Reply
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