How to accept rental payments?

General Landlording & Rental Properties
5yFollow

How to accept rental payments?

Gary Nicholson
Investor · Los Angeles, CA · Member since 2016 · 28 posts · 4 votes

As a new out of state investor, I’m wondering how best to a accept payments if the tenants want to pay with personal check. Should I just open a bank account at a national big bank so they could deposit it at said bank in their state? Mailing checks seems slow and I wonder if they will get to me on time here in California. I will of course offer them the ability to pay online via Cozy or Zelle, Venmo, bank Bill pay, etc. thanks!

0Reply
39 views

Most Popular Reply

Whitney HuttenPro Member
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
5y

@Gary Nicholson For the units I self-manage, I have TenantCloud set up. I can market the units, build leases, store docs, complete accounting work. The tenant can submit maintenance tickets, see the status, and pay rent there.  I've used Cozy before as well.  Things work pretty seamlessly :)

Podcast Guest on Show How to Build Generational Wealth Without Losing it Along the Way
2Reply
See this reply in the discussion

13 Replies

Jump to latestLatest
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    Use smaller community banks. They have less issues with a tenant that needs to deposit cash in your account. Then link the bank to your bank so you can transfer money.

    1Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    5y

    Definitely open up a bank account that they can make a direct deposit into, either by dropping the check off at the bank or transferring money from their bank to yours. Do not accept checks in the mail. I use a fairly good-sized bank but it's regional (Southeast). I don't think it would be an issue to use a national bank, but with most banks you can transfer money without too much trouble. Worst case scenario is you write yourself a check from the other bank once a month/quarter/year. I've done it that way too. 

    Podcast Guest on Show #243
    Skyline Properties
    View Page
    0Reply
  • Marc Winter
    Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 3k+ votes
    5y

    If I were in your situation, I'd do either auto withdrawal from their account or online payment.  I would NOT give them your bank account to make a deposit for the following:

    If you end up having to evict for non-payment, if they deposit $50 into your account, when you get to court they will tell the judge you accepted a partial payment and you'll have to start the process over again.

    1Reply
  • Mary Smith
    Rental Property Investor · Member since 2021 · 385 posts · 197 votes
    5y

    @Gary Nicholson I would recommend looking for a good property management software based on your requirements and have your tenants set up to Auto-pay or allow them to make their payments online. 

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    5y

    Recommend you charge a fee for them to pay via check. Make the fee high enough to discourage them from doing so or to cover your time & resources to verify it clears, etc.

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    0Reply
  • Whitney HuttenPro Member
    Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Gary Nicholson For the units I self-manage, I have TenantCloud set up. I can market the units, build leases, store docs, complete accounting work. The tenant can submit maintenance tickets, see the status, and pay rent there.  I've used Cozy before as well.  Things work pretty seamlessly :)

    Podcast Guest on Show How to Build Generational Wealth Without Losing it Along the Way
    2Reply
  • Kyle Varga
    Investor · UT · Member since 2020 · 26 posts · 22 votes
    5y

    @Gary Nicholson, I make all my tenants pay through my property management software ACH transfers are free. I do require first month's rent and deposit to be wire transfer, or cashier's check if I'm local.

    0Reply
  • Gary Nicholson
    OP
    Investor · Los Angeles, CA · Member since 2016 · 28 posts · 4 votes
    5y

    @Whitney Hutten thanks!

    0Reply
  • Gary Nicholson
    OP
    Investor · Los Angeles, CA · Member since 2016 · 28 posts · 4 votes
    5y

    @Kyle Varga thanks!

    1Reply
  • Gary Nicholson
    OP
    Investor · Los Angeles, CA · Member since 2016 · 28 posts · 4 votes
    5y

    @Drew Sygit thanks!

    0Reply
  • Gary Nicholson
    OP
    Investor · Los Angeles, CA · Member since 2016 · 28 posts · 4 votes
    5y

    @Mary Smith thanks!!

    1Reply
  • Gary Nicholson
    OP
    Investor · Los Angeles, CA · Member since 2016 · 28 posts · 4 votes
    5y

    @Marc Winter thanks!

    0Reply
  • Gary Nicholson
    OP
    Investor · Los Angeles, CA · Member since 2016 · 28 posts · 4 votes
    5y

    @John Underwood thank you!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free