Author Topic: Collecting Rent  (Read 1528 times)

ahawkchick

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Collecting Rent
« on: October 05, 2020, 01:34:55 PM »
Hi Mustachians,
We're small time landlords who manage our own properties.  We have two rental houses currently rented and have just signed the lease agreement for our third.  Thus far we have just collected payments via bank transfers as our tenants have happened to use the same bank, so it was easy.  However, with our new tenants they use a different bank.  I was just doing some online research and it seems like it's not a good strategy to simply give them our account number.  I do want to set up an online payment option rather then dealing with checks though.  What service would you all recommend?  I appreciate any input!  Thanks!

YttriumNitrate

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Re: Collecting Rent
« Reply #1 on: October 05, 2020, 01:56:36 PM »
I use Cozy.co. It's free so long as you don't mind waiting a week or so for the money to be deposited. We have it set up so the money automatically gets pulled on a specific date, so all the tenants need to do is make sure there's enough money in their bank account.

Lucky Recardito

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Re: Collecting Rent
« Reply #2 on: October 05, 2020, 02:52:25 PM »
We have 1 rental unit, and our tenant pays via the Cash app (Square). It was what the previous building owners were using, and when we bought the building the tenant asked if he could keep using it, so we agreed without researching other options. I don't remember the set-up process (we've owned the building for 4 years, with the same great tenant we inherited upon purchase, so haven't had to make any changes), but I get a text when the tenant pays and it's in my bank account the next day. Easy-peasey.

Archipelago

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Re: Collecting Rent
« Reply #3 on: October 05, 2020, 08:54:55 PM »
Tenants can pay however they wish, I can work with any method. For most of them it's either Venmo or check.

SndcxxJ

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Re: Collecting Rent
« Reply #4 on: October 06, 2020, 07:15:36 AM »
I collect rent by cash, check, money order, cashier's check, zelle or PayPal.
Almost everyone who uses a major bank, and some credit unions, go with zelle. It's free for them and me, transfers happen within a business day and it's managed through their banks website so it feels safe.  My only issue with zelle is that there is a $2k limit which, in my market, is too low to pay most rents so people have to pay $2k on the 1st and the balance on the 2nd.

hoodedfalcon

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Re: Collecting Rent
« Reply #5 on: October 06, 2020, 07:22:05 AM »
I use Cozy.co. It's free so long as you don't mind waiting a week or so for the money to be deposited. We have it set up so the money automatically gets pulled on a specific date, so all the tenants need to do is make sure there's enough money in their bank account.

I also use Cozy. I have a property in another state so this is the most convenient - and I made it a part of the lease. You can also electronically communicate with tenants via Cozy, store copies of the lease, etc. It does take a week to deposit, but that is no big deal.

uniwelder

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Re: Collecting Rent
« Reply #6 on: October 06, 2020, 07:36:01 AM »
I'm wondering what's wrong with tenants having your back account number?  My tenants do a bank to bank transfers for their payments.  I provide them the bank routing # and account #, which I write on a piece or paper or dictate over the phone.  Unless you suspect they're criminals, I'm not sure what the risk is.  Genuine question here.

tthree

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Re: Collecting Rent
« Reply #7 on: October 06, 2020, 09:26:46 AM »
Is e-transfer not a thing easily accessed in the States?  Honest question.

SndcxxJ

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Re: Collecting Rent
« Reply #8 on: October 06, 2020, 07:18:07 PM »
I'm wondering what's wrong with tenants having your back account number?  My tenants do a bank to bank transfers for their payments.  I provide them the bank routing # and account #, which I write on a piece or paper or dictate over the phone.  Unless you suspect they're criminals, I'm not sure what the risk is.  Genuine question here.

I actually keep an empty account for this exact purpose.  It is the account I use for apps and any ACH transfers where my account number is needed.  I can then empty any money deposited into that account into my main account through the bank's website/app.  I don't think it is that risky to give out your account number, but it feels safer giving out an account number that has no money attached.

Paul der Krake

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Re: Collecting Rent
« Reply #9 on: October 06, 2020, 07:41:41 PM »
That same account number is being divulged to everyone you've ever written a check to... including bill pay. But you don't trust the people you have a contractual obligation with, along with all their personal information?

MsPeacock

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Re: Collecting Rent
« Reply #10 on: October 13, 2020, 10:11:24 AM »
Currently use Venmo. Have used cozy.co in the past. I'd take any form - check, Zelle, paypal, venmo, etc.


PhishFire

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Re: Collecting Rent
« Reply #12 on: November 19, 2020, 05:55:14 PM »
https://www.hemlane.com

Is what I use and really like it. It's a great free management software with rent collection options a 2.50 per transaction.

Malcat

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Re: Collecting Rent
« Reply #13 on: November 20, 2020, 08:37:56 AM »
Is e-transfer not a thing easily accessed in the States?  Honest question.

I was just wondering the exact same thing.

uniwelder

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Re: Collecting Rent
« Reply #14 on: November 20, 2020, 09:35:04 AM »
Is e-transfer not a thing easily accessed in the States?  Honest question.

I was just wondering the exact same thing.

I try to get my tenants to do e-transfers, and the ones currently renting do, but some people get really weirded out with bank account numbers.

v8rx7guy

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Re: Collecting Rent
« Reply #15 on: November 20, 2020, 09:40:57 AM »
Is e-transfer not a thing easily accessed in the States?  Honest question.

I was just wondering the exact same thing.

I try to get my tenants to do e-transfers, and the ones currently renting do, but some people get really weirded out with bank account numbers.

I often find this funny.  If you wrote a check instead... guess what's at the bottom?

Jon Bon

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Re: Collecting Rent
« Reply #16 on: November 20, 2020, 10:23:48 AM »
Venmo and PayPal are not great ways to collect rent.

https://www.renthelper.us/resources/should-you-use-paypal-or-venmo-to-collect-rent/
https://www.rentbumper.com/best-way-collect-rent-zelle-venmo/
https://resources.hemlane.com/venmo-paypal-direct-deposit-rent/

I read one of these and disagree.

I collect rent via zelle/venmo all the time. There are no fees and my tenants all already have the platform. So it makes it MUCH easier for one person to get transferred $400 per person adn then send me the $1600 rent payment all in one day.

Sure you MIGHT run into an issue where they are underpaying you rent, however I think the convince and ease use more then makes up for it.

Malcat

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Re: Collecting Rent
« Reply #17 on: November 20, 2020, 11:09:49 AM »
Is e-transfer not a thing easily accessed in the States?  Honest question.

I was just wondering the exact same thing.

I try to get my tenants to do e-transfers, and the ones currently renting do, but some people get really weirded out with bank account numbers.

In Canada e-transfers are done with email addresses. No bank info needed.

Valley of Plenty

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Re: Collecting Rent
« Reply #18 on: November 21, 2020, 10:45:38 PM »
I use Cozy.co. It's free so long as you don't mind waiting a week or so for the money to be deposited. We have it set up so the money automatically gets pulled on a specific date, so all the tenants need to do is make sure there's enough money in their bank account.

Of all the rent collection methods I've heard of, this seems like the best one. I would imagine that having the rent set to pull automatically from the tenant's bank account would greatly reduce the likelihood of late payments/non-payment. Have those who use Cozy found this to be the case? Have you run into any tenants or applicants that refuse to use it? If an applicant refused to use Cozy, would you consider that a red flag?