How are u collecting rent?

26 Replies

HI i am a new real-estate investor and have 4 units currently. I have been using zillow to list my properties and manage them. i am just looking to be more efficient with rent collection and help stay more organized. thanks  

@Roy Meyer

Check/Money Order in the mail, Venmo (since there are no fees like CashApp), or tenant can go to my bank and deposit into account directly.

I give my tenants 3 ways to pay:

1. Go to my bank and make direct deposit into my business account.

2. $Cashapp

3. Zelle quickpay

Originally posted by @CJ M. :

@Roy Meyer

Check/Money Order in the mail, Venmo (since there are no fees like CashApp), or tenant can go to my bank and deposit into account directly.

Cashapp has fees?  My tenants have always paid via cashapp and they tell me it's free to use and I certainly don't pay any fee at all.

 

Most direct deposit into our bank account which is our preferred method. Some pay via Venmo by their preference. Our local bank has interactive tellers which are open 13 hours per day seven days a week so it's easy to get there and make the deposit.

@Roy Meyer My tenants either mail me personal checks, provide bank checks, or use Venmo. If someone bounced a personal check I wouldn’t let them use that method again but so far so good.

I’m buying a building now in a town with my personal bank and if those tenants wanted to make direct deposits I’d set that up too.

@Lam N.

It's free for them to use, but charges the landlord a fee. Not sure if it's because I have a business account.

Originally posted by @CJ M. :

@Lam N.

It's free for them to use, but charges the landlord a fee. Not sure if it's because I have a business account.

Oh, I just use my personal account.  My operation is not big enough to be nitpicky about that.

 

Originally posted by @CJ M. :

@Lam N.

Gotcha. Just keep it in mind if you start an LLC

 I do have an llc.  All my properties are owned by the llc.  

Like a lot of small businesses, it doesn't really matter.  Yes, technically I'm suppose to pay a team of accountants millions of dollars to manage my small-*** business, a team of super duper lawyers to watch over my shoulders, and bow down to the almighty IRS and pray to it every morning.  But like I said, smaller operations like mine don't need to be so formal.  I don't need to hire Trump's lawyer and pay him $10K/hour to do an eviction.

Just saying.  When I get bigger, then I'll start worrying about all this stuff.  

@Lam N.

Good lord man, relax I wasn't trying to imply anything. Also, I don't have a Trump sized business either. That said, if you have an LLC, your rents for the properties in the LLC should go directly into your LLC bank account..not your personal account or you could possibly "pierce the corporate veil"...which means if your business gets sued they can come after you personally.

Just trying to help, but obviously I failed at it lol

check or money order. If you are having an issue and need to evict for non payment and the Tennent sends any amount through Venmo, it looks as if you accepted a partial payment and you will have to start the eviction process over again.  

I use Apartments.com to manage all my leases and rent payments. Its easy to manage as you scale, looks more professional than having your tenants pay you through Venmo, Cash App or Zelle and its free. The only down side is that its not instant like the other names. It may take a few business days to process the payments depending on your tenants bank. 

Originally posted by @Sam Albury :

@Eric James This is interesting. How good are their credit scores if they don’t have bank accounts ? Just curious.

 My cutoff credit score is 500 (pretty low). Most tenants are in the 500s, a few above 600. People who rent in my area because there is no way they could purchase a home.

@Eric James

apartments.com, which used to be Cozy.com

Is easy to use easy to manage, and tenants can deposit directly from the bank account to yours with no fees. As stated before there is a couple days lag time but other than that it’s an easy to use pain free program. Best of luck