Can Direct Deposit Of Rent Checks Be Set Up?
I have in-town properties being managed by a mgmt company and it's working out great. But I've now got a rural property that I'm going to be managing myself. In order to try to prevent late and partial payments and the problems that go with that, is it possible to get a tenant set up with a direct deposit (or automatic payment, or whatever it would be called) of their monthly rent to my bank account? Has anyone done this, or have another strategy they'd like to share? Thanks!
If you have a business checking account, you might be able to automatically withdrawl from his account each month. Another idea is to give him a deposit slip and have him go to an ATM machine or the branch of your bank.
Hey,
ACH is a great idea to get rents from tenants, but good luck getting them to agree to it. There is a small setup fee, so doing this for one tenant is not very cost effective.
Giving tenants information on your bank account (deposit slip) is a VERY bad idea. It does not take much skill to use that information to get money OUT of your account. There are several other problems with this idea:
one, you do not know WHICH tenant has paid (as you have only one, it is not an issue, but imagine ten). If you get a deposit for $750...who paid it?
two, you can not tell about partial payments. I
three, it does NOT stop late payments.
The easiest and best answer it to give the tenant 12 stamped envelopes and they mail you the rent check.
I have my tenenats deposit the rent directly into my Bank of America account.
Noone can withdraw money from my account without my I.D. so i dont worry about that happening.
I do have to charge different rents to each tenant to be able to know who paid though.
There's a ACH based account that's available on line,that has that application. It can be set-up to "load"
to your acct. on a scheduled www.basis.The
initial use was 4 college kids, for funds on a regular basis. I'm not looking to sell this service. So not sure how to get the info. to you?Or if it "legal"to do so on the site?
mark
US BANK CAN SET UP ALL YOUR ACH NEEDS FOR RENTERS. ASK FOR THEIR TREASURY MANAGEMENT PRODUCT CALLED "BIZ E." THEY HAVE BEEN EXCELLENT ABOUT GETTING ALL OF MY RENTERS PAID ON TIME.
US BANK CAN SET UP ALL YOUR ACH NEEDS FOR RENTERS. ASK FOR THEIR TREASURY MANAGEMENT PRODUCT CALLED "BIZ E." THEY HAVE BEEN EXCELLENT ABOUT GETTING ALL OF MY RENTERS PAID ON TIME.