A little back story- It has come to my attention that my renter, who is on SSI/disability, goes through a silly/expensive process to pay her rent and other bills. Her monthly payment comes to her via a debit card. She goes to an ATM and pulls cash. Due to the amount, she has to do this in two separate transactions, each of which costs a fee. Then she has to get money orders which also cost a fee so she can mail the check. I figure she pays somewhere between 5 and 10% of her total bills just in fees to pay her bills.
I would like to setup electronic bill pay. This will allow her to pay her rent without fees and assure I collect rent on time without delay, but am unsure of the process. Can anyone walk me through what that takes?
@Ryan Tuleja her bank should be able to allow her to set up recurring payments. Basically, the bank automatically cuts you a check at a and mails it to you on a specific day of the month. The only gotcha is there is usually a 5 day wait for mail time, so you may have to adjust the date you reckon a payment late to account for this is if, for example, your tenant gets paid on the first and the check wont reach you until the 5th.
Is that helpful, or did I miss something?
I've seen more and more people use Venmo, a phone app. You can also access it on your computer. It is a relatively quick transfer money directly over to you. It's free to use as well.
@Ryan Tuleja there are tons of online products that do this. Here is what I have found to be easiest (all of my tenants use Cozy now):
* Automatic ACH transfer. This would be set up from her bank to deposit into your account. Usually free
* Automatic check writing. The bank sends a check to you. Some banks do it, some banks charge for it
* Online product. I use cozy.co. This allows you to set up an account and tie your bank to it. Your tenant sets up an account and ties their bank to it. They can then pay their payment manually, or set it up automatically
If she has a debit card, then she can pay you directly with square cash. I've found people prefer this over setting up another online account. It's free, instant, and very user friendly.