Collecting Rents Automatically
I have read in the Mr. Landlord kit and other places about setting up tenants to automatically pay their rent out of their checking account every month with an auto-debit. Is anyone doing this? What is the program called? I called one bank and it costs $40 / month to setup ACH OneNet to do that. Otherwise I have to have my tenants use the same Bank that I use. Since I only have one property I don't want to pay $40 per month as it would seriously cut my profits. Does anyone know of a cheaper solution? Also, this property is in a small town where most people don't seem to have credit cards...
With ClearNow, rents are automatically withdrawn from your tenants' bank
accounts and directly deposited into your property's bank account. It helps to:
- Eliminate the headaches of collecting rent.
- Eliminate time spent depositing checks.
- Receive timely payments.
- Provide tenants with an ultra-convenient payment method.
They are having a special right now, where the first 2 months are FREE!
http://www.ClearNow.com/public/enrollmentCN1035.pdf
I know of a company called ClearNow that charges $14.95/per month for the 1st tenant and $1.80 for each subsequent tenant. I haven't used them yet, but will probably do so in the near future. See their site for further info. Happy Landlording!
Beazer4
I use Clear Now..... Cheap and easy, PROVIDED your tenants want to go that route.
Check out www.paymentservicenetwork.com. They've got some features that I really liked and it's priced well.
I have 6 tenants who pay automatically through www.paypal.com. It works great and I don't have any problems.
I have seen several theard on this and agree that Paypal could be a good option. you can set up auto payments, and you can either leave the money there in their Money market account, or transfer it to your regular bank. They also provide regular ATM/Visa check cards to access your funds.
I use "Clearnow" as much as possible, HOWEVER, 90% of my tenants are not interested in direct deduction.
Do you offer them a discount to do a direct deduction? Also, my tenants don't have a land line or Internet access. Can they use paypal w/o the Internet?
PayPal is an online service. I would not discount for using direct collecting froms of payment as most charge a fee.
Quote:
On 2004-09-14 00:00, bbriscoe wrote:
Do you offer them a discount to do a direct deduction? Also, my tenants don't have a land line or Internet access. Can they use paypal w/o the Internet?
[addsig]
I use www.Vancoservies.com. They are great. Cheap (less than $1.00) per month and I have not had any problems yet. No, I do not work for them, though have looked all over for a company to do my ach, and they are the most affordable.
I looked up www.vancoservices.com and couldn't find the web page. Are you sure that is spelled right?
I have a system of free checking accounts. One for each property. I give each tenant deposit slip for their account only. They are required to take the money to the bank and deposit the rent themselves. I transfer the money out of the account using the internet the day the rent is due. I find it to be a quick, hassle free rent collection system that costs me nothing.
NOTE: These accounts are totally separate from my account.
[addsig]
How do you track who has paid and who hasn't with the checking account?
Quote:
On 2004-09-15 19:38, sterveen2002 wrote:
How do you track who has paid and who hasn't with the checking account?
I log into the checking acount online on the day after it is due. If they have paid, there will be money in the account. I transfer the money into my personal account and leave the tenant account empty.
[addsig]
Check out http://www.buildium.com/rentaledition/home.html - The transaction charge is only $1 and in addition to getting the electronic payments you have the ability to track payments outstanding, issue late fee penalties, and let your tenants submit issues online instead of calling you.
SavvyYoungster,
You have a separate checking account for each tenant or each property? I put every property into a separate entity and my bank thinks I am crazy.
I couldn't imagine walking in there and ask them to set up 8 accounts for me or such.
I must be missing something. Please share.
THANKS