Landlord-initiated ACH; erentpayment.com?

7 Replies

Hello,  I"m a new landlord--though I have been a business owner (and employer) for many years, so I "get" a lot of things that you all deal with as landlords.    And I really appreciate this site!!  

Does anyone have landlord-initiated ACH?  I was thinking of offering a "discount" if the tenant chooses to pay this way, and set up the ACH to happen every month on the 1st. Anyone doing this??   If so, what is the service or platform that you use? 

I'm getting ready to get my first property out in the market.  Yesterday I set up with erentpayment.com because I really liked that they offered this option, BUT....then I saw all the issues that clients of erentpayment are going through!  

I like Cozy, but it doesn't seem like this option is available.  (I'm also thinking of just not going through one of these sites, and going it on my own--giving my bank account out---it makes me feel weird, but I've talked to several landlords who operate this way with no issues.)

Thank you in advance!!!!

I require tenants to set up payment options. This prevents any accusations of me stealing money from a tenant or messing up their payment schedule.

You could give your tenants a deposit slip and they can set up direct deposit or deposit the payment manually at your bank.  

I had tenants sign a credit authorization form, sent an invoice each month and used my Square account which direct deposited into my account within 24 hrs

If you give the tenant your bank routing number and account number then they can sent up autopay thru their bank and have it sent to your bank. 

I use erent... and didn't have any issues in Oct but didn't use them in Nov to give them time to get everything fixed.  I will go back to them but I have 1 rental.  My renter loved the credit score building feature of erent. 

I basically give the tenant a few options on how to pay rent and let them figure out what works for them.    Let them set it up as its their responsibility to pay you.  No different than a utility bill. 

I use erentpayment.  I had a rent payment and a security deposit caught in their mess.  Fortunately my client was able to reverse it.  I've had three other clients pay rent since the debacle with erentpayment and those were processed by erentpayment correctly.  I'm still waiting on the last one as it was submitted on the evening of the 2nd.  It does take awhile for those to clear.  I had my newest tenant use zelle.com and that was deposited the same day into my account with no fees.

Originally posted by @Jennifer A. :

I use erentpayment.  I had a rent payment and a security deposit caught in their mess.  Fortunately my client was able to reverse it.  I've had three other clients pay rent since the debacle with erentpayment and those were processed by erentpayment correctly.  I'm still waiting on the last one as it was submitted on the evening of the 2nd.  It does take awhile for those to clear.  I had my newest tenant use zelle.com and that was deposited the same day into my account with no fees.

 Good to hear that payments where processed!

@Angela McCall I also use erentpayment and am aware of the entire erentpayment issue from early October. They are the only company I am aware of that meets our needs of having one account that can handle multiple LLC checking accounts, ability to auto add late fees, allow you to block payment if you are evicting, allow for every other week rental payments, and many other features.

I cannot say that I can recommend them because although the October situation was not caused by their action but by a situation with their payment processor, and they have switched from using ACH payment processors to a direct bank relationship, their communication about the problem was *horrible*, there are still many landlords trying to get their rent money, and the process to do so is time consuming and requires the tenant to file a form with their bank.  

In our area it can take several months to get an eviction, and getting a payment from a tenant will cause the whole entire process to need to be started all over again. You can't stop a  payment if you have given a tenant your bank info, or use a process that doesn't allow you to block a tenant payment, unless you close the account. May not be an issue for a landlord with one rental, but is when you have more than several rentals.

This is great information.  Thank you all for the education.  Enjoy your weekend!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here