Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 542 votes
Good morning Fellow Landlords,
It's the last Friday of the month so I (or my property managers) will be placing Self Addressed Stamped Envelopes under the doors of our rental units.
You've got to take into consideration that sometimes our Busy Tenants may forget the day of the month, our addresses or stamps.
I'll do anything I can, do to help them!
Even a reminder call on the First of the month, when rent is due. (mainly because it again reminds them and I may receive it on the fifth when it is technically late in Massachusetts).
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
Originally posted by Suzie B.:
Most of ours mail their rent checks. A couple of them know where we live and let us know when they will drop their checks by.
...
I don't like the idea of them dropping their payment off at our bank. I don't want them to have our account information ...
@Suzie B. - that info is already available to them on the endorsement you did on the reverse side of their cancelled check.
SFR Investor · Southfield, MI · Member since 2012 · 70 posts · 19 votes
13y
I like that idea.
I happen to live in the same neighborhood as my rentals so I allow them to drop it in my mailbox and text me afterwards. Some of the tenants text me and arrange for me to pick it up on my way home.
Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes
13y
@Mike Hurney, I give them duplicates of how to pay rent when they sign a lease.
I have all my tenants set up for online pay. They pay me utilizing their Banks bill pay option or transfer option. The first month is usually complicated for them but this allows for my time to be used more efficiently and for them to not have to run to the bank to get cash out.
I have 4 properties paying this way and it has been great.. well after the initial payment due to confusion but since then has been great.
Chattanooga, TN · Member since 2010 · 319 posts · 100 votes
13y
Aaron Yates I actually have a lot of tenants who don't have bank accounts. What would you do then? I know that that is crazy given it is the year 2013.
Mike Hurney Great tip! I wish I could get everyone online!
Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 542 votes
13y
Jimmy Moncrief Unfortunately I've got different arrangements for several Tenants. One I have to see at 4:00PM sharp every Friday. ( I have the Bank on Speedial to confirm the Bank hasn't made an error with the Tenants check;-)
Pain in the Butt but it's complicated and worth it.
Investor · buffalo, NY · Member since 2008 · 354 posts · 23 votes
13y
I think it depends on your clientele because a lot of tenants might not be able to pay online or via an account because they don't have a bank account. Ideally the self addressed letter and stamp is ideal. May cost you a bit but not too much. Plus tax write off :)
Real Estate Investor · Fort Wayne, IN · Member since 2013 · 168 posts · 78 votes
13y
I have a business account set up with Wells Fargo....because they are all over here and I have my tenants deposit there rent there. That way I don't have to coordinate anything. I do have to be careful to keep everyone's rent a different amount though.
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
13y
Originally posted by Mike Hurney:
How do you help your Tenants?
I allow them to get the rent in by the 5th of the month with no late fee. On July 5th, I had one rent payment by 9 pm. I checked at 11 pm and all the other payments were there!
Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes
13y
Jimmy Moncrief, before I went to this process, one tenant did like Elizabeth S. mentioned and deposited directly to my account. Another paid with paypal for one month.
The reason I chose the route of bank transfer is because I travel for work alot and I manage my own properties. So instead of struggling to pick up rent or allowing them to be late because I'm out of town, I switched to the bank method.
But I will accomodate as needed. I like having money just appear in my bank account... its awesome... ha ha ha
Greentown, IN · Member since 2012 · 140 posts · 18 votes
13y
Most of ours mail their rent checks. A couple of them know where we live and let us know when they will drop their checks by.
I have considered doing some kind of online payment, but haven't decided yet. Would be nice to have it automatically go through our software when it is collected.
I don't like the idea of them dropping their payment off at our bank. I don't want them to have our account information, or have the ability to do a partial payment without my ok. I also think it would be difficult to track if you had too many rentals that were close in amounts.
Los Angeles, CA · Member since 2013 · 555 posts · 261 votes
13y
I text message 2 days before rent is due and make them go to the bank to deposit money. That way they can never give me a BS excuse like "I mailed it already".
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
13y
Originally posted by Elizabeth S.:
I have a business account set up with Wells Fargo....because they are all over here and I have my tenants deposit there rent there. That way I don't have to coordinate anything. I do have to be careful to keep everyone's rent a different amount though.
I too, have many tenants depositing their rents into my account. Ive overcome the issue of not knowing who's is who's by having them either write their name or address on the signature line of the deposit ticket. I can then pull up images of the deposit slips online when for tenants that have the same rental amounts.
Forney, TX · Member since 2013 · 119 posts · 101 votes
13y
All of our rentals are in close proximity to one another so I went and opened an account with a credit union close by. I set up the account so that when a tenant goes to pay rent for the month they deposit into account named Shannon Slade. The Teller asks who from they either respond with the address or tenants name.
On the fifth I check my accounts online website to find who has paid and who's late.
The tenant doesn't have my account number. The credit union allows them to just give my name and they take the deposit and then give them a receipt for payment. All party's are happy with the current system. Especially me! I use to go by there multiple times to collect rent and from all tenants. The only con now is I must make time to go and check up on the property to make sure no code violations (grass being mowed, no vehicles parked in grass, fence not falling down, etc).
Real Estate Investor · Garland, TX · Member since 2013 · 46 posts · 7 votes
13y
We give them 12 deposit slips (plus a few extra) for our deposit only bank account. All of the deposit slips have the name of the street written on them (by me). They take their money up to the bank and deposit it directly into our account.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
Originally posted by Suzie B.:
Most of ours mail their rent checks. A couple of them know where we live and let us know when they will drop their checks by.
...
I don't like the idea of them dropping their payment off at our bank. I don't want them to have our account information ...
@Suzie B. - that info is already available to them on the endorsement you did on the reverse side of their cancelled check.
Rental Property Investor · Clearwater, FL · Member since 2013 · 124 posts · 55 votes
13y
we also went with a "deposit card" approach, and everyone seems to like it. similar to a debit card, but they cannot take money out of our (business) account or see the balance. each tenant has their own card, and can go to any branch of our bank to use the ATM. of course, the atm will accept cash or checks, and they can used the counter, too, if they prefer. we can see the deposit online, and they get a paper receipt.
I don't remind them. I'm not their babysitter. The only reminder is if I have fine them a late fee or evict. It's their job to remember to pay rent-- just like it's my job to remember to pay the mortgage. :)
They can pay by mailing it to me or handing it to me. Either way, it's their job to have it here in time. If they ask, I set up online payments for them that are automatic.
I've never had a landlord remind me about rent every month. I've never paid a landlord late, either. I think I would be irritated if a landlord called ahead every month reminding me of rent. I would also be irritated if I had to go deposit somewhere. I always mailed my rent checks a week or more early if I didn't go drop it off.
I suppose if I had sketchy tenants I might allow bank deposits or cash in person.... who knows.
All of my credit cards, phone carriers, utilities, etc etc babysit me every month.
Rent is no different.
None of my utility companies, phone carriers, etc. remind me.
Not until they cut off service and give me late fees anyway. ;)
I expect tenants to remember on their own. If they don't, late fees. That's what happens with my mortgage, too. And my utilities, credit cards, and so on.
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
13y
Originally posted by Cathy Svercl:
we also went with a "deposit card" approach, and everyone seems to like it. similar to a debit card, but they cannot take money out of our (business) account or see the balance.
Cathy,
It took me a year to convince my bank (one of the "Big 5" here in Canada) to do this very thing. They resisted each step of the way and charge us for each "deposit card". Fast forward a year and I see {actually heard via word of mouth} they are offering this as a service to landlords {at least at the local branches}.
Does your bank {sur}charge you to provide this service?
Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
13y
I use www.erentpayment.com for most of my tenants' rent payments. Two of my tenants pay directly by depositing the rent into my business account at a local bank. Only 2 of my tenants have the same amount of rent, but that's why only one of them pays at the bank. I only offer new tenants that option if there is no other rent payment the same as theirs.
I've never taken a check from a tenant nor would I ever pick up the rent in person. As others have said, it's their responsibility to remember to pay the rent on time, as I/we all pay our bills on time without reminders. If they do not, they'll be paying a late fee on the 4th of the month, and $5 a day added to that. When a new tenant moves in, I go over the lease and payment procedures with them and emphasize that my husband and I have to pay the mortgage every month with that rent, plus the maintenance fees, taxes, repairs, and insurance.
As long as it's discussed and enforced, the tenants understand their obligation to pay the rent on time and in full. We've made it as easy as possible with online payments or the ability to stop at the local bank.
Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 542 votes
13y
Yiv L.
"Mike Hurney, if you have to drop off the stamped envelop at the door every month, why not knock at their door and collect the rent instead?"
Thanks Yiv, because it's an early reminder on the last Friday of the month.
Suzie B.
"A couple of them know where we live and let us know when they will drop their checks by."
Thanks Susie, All Tenants know where they're Landlords live once they turn 10 years old and have internet access.
BUT
I've had Tenants leave cash;-( which i discouraged. My car and truck were locked so she placed it under the windshield wiper. I only noticed it when I drove out from my driveway, in the rain, and put the wipers on... Only to see wet $20's flying;-)
Jon K.
"I've never had a landlord remind me about rent every month. I've never paid a landlord late, either. I think I would be irritated if a landlord called ahead every month reminding me of rent. I would also be irritated if I had to go deposit somewhere. I always mailed my rent checks a week or more early if I didn't go drop it off."
Thank you Mr. Perfect, I knew I'd meet you some day!
Mike Franco
"All of my credit cards, phone carriers, utilities, etc etc babysit me every month. Rent is no different."
Congrads Mike, you got my point!
Greentown, IN · Member since 2012 · 140 posts · 18 votes
13y
Wow... luckily our tenants haven't left money in a windshield wiper. Typically ours will call on their way over to the house. If we aren't there, but are going to be there soon, we tell them a safe place to put it.
We don't typically remind tenants about their rent check. I know what day my mortgages are due, yes I have a payment book for them, but I have to remember... same should work for them. No one used to remind me when I was a renter.
If we do find we have someone who tends to not pay in a timely manner, I can generate an automatic email every month to those tenants as a reminder.