Best Way to Collect Rent Electronically?

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VictorStarr
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Location: California

Re: Best Way to Collect Rent Electronically?

Post by VictorStarr »

You can ask them to deposit checks by mail. Tenants either send checks or use BillPay.

For example, if you have an account with Fidelity, your tenants would write a check to Fidelity and write your account number in the memo field.
You can either use a single account for all payments or an account for a tenant.
You have to disclose full account number to tenants (they expose their accounts when they send check to you).

Details for Fidelity: https://www.fidelity.com/cash-managemen ... ck-by-mail
BogleFan510
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Re: Best Way to Collect Rent Electronically?

Post by BogleFan510 »

Silly Wabbit wrote: Sun Dec 27, 2020 12:09 am
BogleFan510 wrote: Sun Dec 27, 2020 12:02 am
pasadena wrote: Sat Dec 26, 2020 11:45 pm
Morgan22 wrote: Sat Dec 26, 2020 10:41 pm I pay my Landlord via Zelle every month. He's very happy that I suggested it. The money hits his account immediately. Within a minute of me sending the payment he always lets me know he received it.
Same for me. He told me that since he discovered the service, after I suggested it, he's proposing it to all of his tenants. I also like that it's a service proposed by my bank.

As a tenant, a landlord requiring physical checks (or money orders!) would be a deal breaker for me.
Zelle is what we switched to when the US mail took 45 then 50 days to deliver checks 60 miles during election month 'enhancements'. Must be because I live in a blue area. Did not need to give tenant my bank acct number for us to link via phone numbers. OP mentioned a huge eviction concern so he must be renting to lower income, which research shows tend to be bankless more often than phoneless. Accepting mobile payments lowers costs for tenants = good will.

Really the objection to using a secure phone to transact is very odd to me, but enough trolling. Let the OP simmer and complain that no perfect thing exists exactly as he wants it. I used to participate in the payment industry at a level where the big payment brands called on me to present their innovations, and also sat on industry event panels to discuss mobile payments. Payments on phones are among the most secure against fraud possible and much more likely to be identity authentic.
I don't think the OP is bothered with whether the senders use a phone or not, but whether they have to use a phone to look at payments received, reports, etc.
Zelle emails me a receipt. They also show up on my bank statements. Really only needed to use the phone once to set it up.
av111
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Re: Best Way to Collect Rent Electronically?

Post by av111 »

OP

Zelle works for me but may not work for you if your rents are over 2000. How big are your rents?

If you are tenants are not comfortable with tech, have checks mailed to a mailbox.
AV111
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AerialWombat
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Re: Best Way to Collect Rent Electronically?

Post by AerialWombat »

.....
Last edited by AerialWombat on Fri Apr 02, 2021 1:00 am, edited 1 time in total.
For entertainment purposes only.
ellsbebc
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Re: Best Way to Collect Rent Electronically?

Post by ellsbebc »

joer1212 wrote: Sat Dec 26, 2020 11:03 pm
Bobby206 wrote: Sat Dec 26, 2020 10:54 pm One tenant pays by Facebook. It's funny as he says he can't use PayPal but he can use Facebook for free. It comes through Facebook and goes to my Paypal account without any fees. I have another tenant that pays by Zelle. Another mails a check. It's all good.
I'm curious; what do professional property managers use to collect rent from tenants? I doubt they go knocking on doors asking for it.
Many of the large multifamily owners/managers use Yardi, RealPage, or MRI. That is mainly because those companies offer a “suite” of services (residential management, accounting, vendor management, procurement, etc.) and not simply an online portal for residents to submit payment.

I don’t know what smaller landlords use to support e-payment but I would speculate many of them use the free options many other members previously mentioned. You are most likely at a crossroad of use these already identified free options that might require mobile app or pay for a service to meet your desires.

Below is an option I found with a quick search, which also reports positive rental payment history to the bureaus to build the tenant’s credit score. Don’t know the admin/software cost to the landlord for the online payment portal service.

https://www.renttrack.com/collect-rent-online/
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joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

BogleFan510 wrote: Sun Dec 27, 2020 12:02 am Payments on phones are among the most secure against fraud possible and much more likely to be identity authentic.
I'm not questioning the security of phones, I just don't want to constantly do business on one. A phone is awkward and uncomfortable compared to a desktop with a large screen and proper keyboard. Plus, there's always a chance that I may lose it. It's just much better on a desktop.
Last edited by joer1212 on Sun Dec 27, 2020 1:50 am, edited 1 time in total.
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joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

ellsbebc wrote: Sun Dec 27, 2020 1:26 am
joer1212 wrote: Sat Dec 26, 2020 11:03 pm
Bobby206 wrote: Sat Dec 26, 2020 10:54 pm One tenant pays by Facebook. It's funny as he says he can't use PayPal but he can use Facebook for free. It comes through Facebook and goes to my Paypal account without any fees. I have another tenant that pays by Zelle. Another mails a check. It's all good.
I'm curious; what do professional property managers use to collect rent from tenants? I doubt they go knocking on doors asking for it.
Many of the large multifamily owners/managers use Yardi, RealPage, or MRI. That is mainly because those companies offer a “suite” of services (residential management, accounting, vendor management, procurement, etc.) and not simply an online portal for residents to submit payment.

I don’t know what smaller landlords use to support e-payment but I would speculate many of them use the free options many other members previously mentioned. You are most likely at a crossroad of use these already identified free options that might require mobile app or pay for a service to meet your desires.

Below is an option I found with a quick search, which also reports positive rental payment history to the bureaus to build the tenant’s credit score. Don’t know the admin/software cost to the landlord for the online payment portal service.

https://www.renttrack.com/collect-rent-online/
Thanks for the info and link.
After much thought and consideration, I decided to go with Zelle. It's apparently the lesser of all evils, especially since it's integrated with my bank's online account.
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joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

AerialWombat wrote: Sun Dec 27, 2020 1:04 am
I concur. I was agreeing with you.

Smartphones are the opium of the masses. Desktop computers are still the tool of choice for creating wealth.
Sorry about that. I neglected to remove your quote from the others.
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joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

av111 wrote: Sun Dec 27, 2020 12:21 am OP
Zelle works for me but may not work for you if your rents are over 2000. How big are your rents?
My highest rent so far is over $900, but my new rental units will go for $1200.
Also, everyone pays on the first of each month. Keeps thing simple and streamlined. Would that be an issue for Zelle?
BogleFan510
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Re: Best Way to Collect Rent Electronically?

Post by BogleFan510 »

joer1212 wrote: Sun Dec 27, 2020 1:54 am
av111 wrote: Sun Dec 27, 2020 12:21 am OP
Zelle works for me but may not work for you if your rents are over 2000. How big are your rents?
My highest rent so far is over $900, but my new rental units will go for $1200.
Also, everyone pays on the first of each month. Keeps thing simple and streamlined. Would that be an issue for Zelle?
Im collecting 2400 a month for a tenant, with no issues. Tenant has BofA acct, so free to them.
pasadena
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Re: Best Way to Collect Rent Electronically?

Post by pasadena »

BogleFan510 wrote: Sun Dec 27, 2020 1:58 am
joer1212 wrote: Sun Dec 27, 2020 1:54 am
av111 wrote: Sun Dec 27, 2020 12:21 am OP
Zelle works for me but may not work for you if your rents are over 2000. How big are your rents?
My highest rent so far is over $900, but my new rental units will go for $1200.
Also, everyone pays on the first of each month. Keeps thing simple and streamlined. Would that be an issue for Zelle?
Im collecting 2400 a month for a tenant, with no issues. Tenant has BofA acct, so free to them.
The daily and monthly limits to *send* money via Zelle are set by the bank. They have a list on their website. Ally has a $5,000 per day limit. Others are lower.

From what they say on their site, there is no limit on funds *received*
baliktad
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Re: Best Way to Collect Rent Electronically?

Post by baliktad »

joer1212 wrote: Sat Dec 26, 2020 9:19 pm Do these have low limits on how much they can transfer at once?
I'm soon going to have 10 tenants all paying on the first of the month. I can't afford bottlenecks.

Also, can I stop payment from a tenant with these services, should I need to evict him? I've read that some of these services don't allow you to do that.

There are laws that allow tenants to prolong the eviction process as long as they make a deposit of as little as $1 into a landlord's account. It counts as a 'good faith' attempt to pay rent. I want to avoid this by blocking a tenant from depositing partial payments during an eviction. If it weren't for this, I would have simply instructed my tenants to deposit their rent directly into my bank account, either in person, or through their 'bill pay' option in their online bank accounts. The purpose of a 'middle man', like these rent collection services, is to create a barrier between your tenant and your bank account.
Our self-managed HOA uses Buildium to collect monthly HOA dues, a recurring task not unlike collecting rent. Buildium is really a complete property management accounting solution that also facilitates online payments via check/ACH and credit/debit cards. They're really geared towards small & medium-size independent property management firms, but your role as a small-time landlord will likely find value in a large portion of their offering.

Buildium does charge a monthly platform fee (minimum $50/mo.), and there are payment fees on top of that ($1 per ACH or 3% for credit/debit, you decide who will pay the fees). But I think they do meet your highly specific requirements:
  • No (realistic) limits on payment amounts. The default limit is something like $10K per payment and $300K per month, which can be raised on request if your needs are greater. They are very familiar with rent collection norms, unlike other "friends & family"-type payment services like Zelle, Venmo, and Cashapp which are really designed for splitting bar tabs and occasionally paying babysitters.
  • Fast transfers. They offer 1-business day transfers by default, or same-day transfers with a slightly increased fee. Reports can show you which tenants have scheduled payments for the future (one-off and recurring) as well as what payments have been initiated and are still in progress, so you have always visibility into who has paid even before the money is in your account.
  • Total separation between your tenant's accounts and your landlord account. Money moves to Buildium's payment processor first and then you receive one daily deposit from the processor with all of that day's funds aggregated (online reporting still shows you the breakdown of whose payments are included). Tenants will see the name of your company on their bank or credit card statement, but never have any access to any of your account numbers or institutions. Even better, if you change your account number or move to a different bank, tenants aren't affected and won't even know anything changed.
  • Blocking partial payments. You own the payment experience, so if you want to require that tenants make payment of the entire amount due or not at all, you just flip a switch. The tenant payment interface will enforce your preference on all future payments.
  • Blocking all payments. If you need to prevent a tenant from making a payment at all, you can block their access to the payment portal entirely. You can do this on a per-tenant basis at will.
There's a bunch more functionality included in the Buildium platform for that monthly fee: automated late fees, email reminders, full G/L accounting, rental unit advertising, online applications for prospective tenants, electronic leases, document storage, maintenance requests & tracking, vendor management, bill pay, online 1099 prep, and more. Our HOA uses it as a complete property management solution; we're not strictly a "landlord" but our needs are very similar and we've been very pleased with the online capabilities.
denovo
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Re: Best Way to Collect Rent Electronically?

Post by denovo »

joer1212 wrote: Sun Dec 27, 2020 1:54 am
av111 wrote: Sun Dec 27, 2020 12:21 am OP
Zelle works for me but may not work for you if your rents are over 2000. How big are your rents?
My highest rent so far is over $900, but my new rental units will go for $1200.
Also, everyone pays on the first of each month. Keeps thing simple and streamlined. Would that be an issue for Zelle?
There should be no issue with Zelle then
"Don't trust everything you read on the Internet"- Abraham Lincoln
musicmom
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Re: Best Way to Collect Rent Electronically?

Post by musicmom »

Ive used Zelle to remotely pay our disabled daughters rent each month from her online Chase checking account.
Easy set up and landlord receives money instantaneously.
Has worked perfectly for 3+ years.
njinvestor2019
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Re: Best Way to Collect Rent Electronically?

Post by njinvestor2019 »

joer1212 wrote: Sat Dec 26, 2020 5:15 pm - Cozy is no longer accepting landlord accounts.

- AppFolio charges a whopping $250/month for their property management software.

- Zelle, Paypal, Venmo, etc. have low limits on how much you can transfer at a time (plus other bad features). Since I currently have 10 rental units in 4 properties (7 of which are rented and pay the first of each month), these are useless to me.

- Tellus seems to be designed for mobile devices, and I don't do official business on anything but my desktop computer.

These properties are out of state (about 3 hrs away).

I'll elaborate as the questions and comments come in.

Thanks
You can use apartments.com to accept online payments.The payments are no cost to you and there seems to be no limits. The tenant will only be charged if they wish to pay using a credit card.
Dave1mo1
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Re: Best Way to Collect Rent Electronically?

Post by Dave1mo1 »

joer1212 wrote: Sat Dec 26, 2020 11:03 pm
Bobby206 wrote: Sat Dec 26, 2020 10:54 pm One tenant pays by Facebook. It's funny as he says he can't use PayPal but he can use Facebook for free. It comes through Facebook and goes to my Paypal account without any fees. I have another tenant that pays by Zelle. Another mails a check. It's all good.
I'm curious; what do professional property managers use to collect rent from tenants? I doubt they go knocking on doors asking for it.
Not a professional, but I own and manage 20 properties and use Buildium. It has a tenant website and payment function that you can customize if desired, solid reports, and a myriad other functions that I don't necessarily use. I can also have people apply on my site electronically and run the background and credit checks from there.

You can also turn off payment options whenever you'd like.

It's something like $500-$550 a year for me, so it's not cheap. It's also nowhere near Appfolio in price.
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joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

pasadena wrote: Sun Dec 27, 2020 2:11 am
BogleFan510 wrote: Sun Dec 27, 2020 1:58 am
joer1212 wrote: Sun Dec 27, 2020 1:54 am
av111 wrote: Sun Dec 27, 2020 12:21 am OP
Zelle works for me but may not work for you if your rents are over 2000. How big are your rents?
My highest rent so far is over $900, but my new rental units will go for $1200.
Also, everyone pays on the first of each month. Keeps thing simple and streamlined. Would that be an issue for Zelle?
Im collecting 2400 a month for a tenant, with no issues. Tenant has BofA acct, so free to them.
The daily and monthly limits to *send* money via Zelle are set by the bank. They have a list on their website. Ally has a $5,000 per day limit. Others are lower.

From what they say on their site, there is no limit on funds *received*
Yes, I was happy when I finally discovered this. I had been under the impression that Zelle set strict limits. I also mistakenly thought that Zelle was a separate website, app, or program that I had to log into. It turns out that it is seamlessly integrated with my online bank account. Can't get any better than that. The only issue is that I can't block partial payments with Zelle in the event of an eviction, potentially causing delays in the process. We'll see how it goes.
Last edited by joer1212 on Sun Dec 27, 2020 11:36 am, edited 2 times in total.
Topic Author
joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

.....
Last edited by joer1212 on Sun Dec 27, 2020 11:39 am, edited 1 time in total.
av111
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Re: Best Way to Collect Rent Electronically?

Post by av111 »

joer1212 wrote: Sun Dec 27, 2020 1:54 am
av111 wrote: Sun Dec 27, 2020 12:21 am OP
Zelle works for me but may not work for you if your rents are over 2000. How big are your rents?
My highest rent so far is over $900, but my new rental units will go for $1200.
Also, everyone pays on the first of each month. Keeps thing simple and streamlined. Would that be an issue for Zelle?
OP
Receiving 900 to 1200 is unlikely to be a problem for zelle. In my experience 1500 is the lowest daily transfer limit. BTW that's a 33% jump in rent. Wow

Zelle does not work for a few people. Some credit unions do not offer zelle so one of my tenants goes to the bank to deposit the rent. Another doesn't like to transfer so they go to the bank and deposit
AV111
Bobby206
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Re: Best Way to Collect Rent Electronically?

Post by Bobby206 »

joer1212 wrote: Sat Dec 26, 2020 11:03 pm
Bobby206 wrote: Sat Dec 26, 2020 10:54 pm One tenant pays by Facebook. It's funny as he says he can't use PayPal but he can use Facebook for free. It comes through Facebook and goes to my Paypal account without any fees. I have another tenant that pays by Zelle. Another mails a check. It's all good.
I'm curious; what do professional property managers use to collect rent from tenants? I doubt they go knocking on doors asking for it.
Depends. I know in Memphis, where I own properties, the PM gets mostly cash and money orders paid IN PERSON at their office. Very old fashioned there.

I believe, however, that most of the online PM software packages include a payment widget that tenants can use.
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joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

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Last edited by joer1212 on Sun Dec 27, 2020 11:21 am, edited 1 time in total.
Topic Author
joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

pasadena wrote: Sun Dec 27, 2020 2:11 am The daily and monthly limits to *send* money via Zelle are set by the bank. They have a list on their website. Ally has a $5,000 per day limit. Others are lower.
From what they say on their site, there is no limit on funds *received*
Yes, I was happy when I finally found this out. I had been under the impression that Zelle set strict limits. I also mistakenly thought that Zelle was a separate website, app, or program that I had to log into. It turns out that it is seamlessly integrated with my online bank account. Can't get any better than that. The only issue is that I can't block partial payments in the event of an eviction. We'll see how it goes.
Topic Author
joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

av111 wrote: Sun Dec 27, 2020 11:16 am
joer1212 wrote: Sun Dec 27, 2020 1:54 am
av111 wrote: Sun Dec 27, 2020 12:21 am OP
Zelle works for me but may not work for you if your rents are over 2000. How big are your rents?
My highest rent so far is over $900, but my new rental units will go for $1200.
Also, everyone pays on the first of each month. Keeps thing simple and streamlined. Would that be an issue for Zelle?
OP
Receiving 900 to 1200 is unlikely to be a problem for zelle. In my experience 1500 is the lowest daily transfer limit. BTW that's a 33% jump in rent. Wow

Zelle does not work for a few people. Some credit unions do not offer zelle so one of my tenants goes to the bank to deposit the rent. Another doesn't like to transfer so they go to the bank and deposit
I gave my tenants a second option to pay rent by physically going to my bank (not far away) and depositing into my account. They have my name and last four digits of my bank account.
ajjulee
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Re: Best Way to Collect Rent Electronically?

Post by ajjulee »

niceguy7376 wrote: Sat Dec 26, 2020 10:46 pm I dont think there is any method where you can limit what is sent to you OP. You mention that you dont want to receive anything less than the full rent. I do not remember any method (including checks) where you can make a decision to accept the payment or not.
I know of one such application but the OP doesn't like to use it. Tellus lets landlords disallow partial rent payments. As of now, Tellus is smartphone only App and free to use. Rent payment goes to Tellus and then is transferred to landlord's bank account (usually takes about three or four days). Tenants won't have access to landlords bank account information.
Last edited by ajjulee on Sun Dec 27, 2020 11:47 am, edited 1 time in total.
What I write on this forum is sometimes the truth, maybe the whole truth, and not always nothing but the truth, for the purposes of online anonymity.
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joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

baliktad wrote: Sun Dec 27, 2020 2:54 am
joer1212 wrote: Sat Dec 26, 2020 9:19 pm Do these have low limits on how much they can transfer at once?
I'm soon going to have 10 tenants all paying on the first of the month. I can't afford bottlenecks.

Also, can I stop payment from a tenant with these services, should I need to evict him? I've read that some of these services don't allow you to do that.

There are laws that allow tenants to prolong the eviction process as long as they make a deposit of as little as $1 into a landlord's account. It counts as a 'good faith' attempt to pay rent. I want to avoid this by blocking a tenant from depositing partial payments during an eviction. If it weren't for this, I would have simply instructed my tenants to deposit their rent directly into my bank account, either in person, or through their 'bill pay' option in their online bank accounts. The purpose of a 'middle man', like these rent collection services, is to create a barrier between your tenant and your bank account.
Our self-managed HOA uses Buildium to collect monthly HOA dues, a recurring task not unlike collecting rent. Buildium is really a complete property management accounting solution that also facilitates online payments via check/ACH and credit/debit cards. They're really geared towards small & medium-size independent property management firms, but your role as a small-time landlord will likely find value in a large portion of their offering.

Buildium does charge a monthly platform fee (minimum $50/mo.), and there are payment fees on top of that ($1 per ACH or 3% for credit/debit, you decide who will pay the fees). But I think they do meet your highly specific requirements:
  • No (realistic) limits on payment amounts. The default limit is something like $10K per payment and $300K per month, which can be raised on request if your needs are greater. They are very familiar with rent collection norms, unlike other "friends & family"-type payment services like Zelle, Venmo, and Cashapp which are really designed for splitting bar tabs and occasionally paying babysitters.
  • Fast transfers. They offer 1-business day transfers by default, or same-day transfers with a slightly increased fee. Reports can show you which tenants have scheduled payments for the future (one-off and recurring) as well as what payments have been initiated and are still in progress, so you have always visibility into who has paid even before the money is in your account.
  • Total separation between your tenant's accounts and your landlord account. Money moves to Buildium's payment processor first and then you receive one daily deposit from the processor with all of that day's funds aggregated (online reporting still shows you the breakdown of whose payments are included). Tenants will see the name of your company on their bank or credit card statement, but never have any access to any of your account numbers or institutions. Even better, if you change your account number or move to a different bank, tenants aren't affected and won't even know anything changed.
  • Blocking partial payments. You own the payment experience, so if you want to require that tenants make payment of the entire amount due or not at all, you just flip a switch. The tenant payment interface will enforce your preference on all future payments.
  • Blocking all payments. If you need to prevent a tenant from making a payment at all, you can block their access to the payment portal entirely. You can do this on a per-tenant basis at will.
There's a bunch more functionality included in the Buildium platform for that monthly fee: automated late fees, email reminders, full G/L accounting, rental unit advertising, online applications for prospective tenants, electronic leases, document storage, maintenance requests & tracking, vendor management, bill pay, online 1099 prep, and more. Our HOA uses it as a complete property management solution; we're not strictly a "landlord" but our needs are very similar and we've been very pleased with the online capabilities.
This sounds good, albeit a little pricey. I may consider it if and when I acquire more properties. Thanks for the exhaustive info.
Luke Duke
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Re: Best Way to Collect Rent Electronically?

Post by Luke Duke »

manatee2005 wrote: Sat Dec 26, 2020 10:09 pm People in this thread are trying to help you and you are refusing.
This. I'm not sure why people continue to offer suggestions.
stan1
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Re: Best Way to Collect Rent Electronically?

Post by stan1 »

Luke Duke wrote: Sun Dec 27, 2020 12:00 pm
manatee2005 wrote: Sat Dec 26, 2020 10:09 pm People in this thread are trying to help you and you are refusing.
This. I'm not sure why people continue to offer suggestions.
He said he would use Zelle, progress was made.
pasadena
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Re: Best Way to Collect Rent Electronically?

Post by pasadena »

joer1212 wrote: Sun Dec 27, 2020 11:23 am I gave my tenants a second option to pay rent by physically going to my bank (not far away) and depositing into my account. They have my name and last four digits of my bank account.
You realize that every time you *write* a check, your full account number and routing number are written on it? It's not something secret or dangerous. You could also open a specific account for rent payments and give them that, then do an automatic transfer to your actual checking account.
Fclevz
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Re: Best Way to Collect Rent Electronically?

Post by Fclevz »

joer1212 wrote: Sat Dec 26, 2020 5:15 pm - Cozy is no longer accepting landlord accounts.
They still are accepting landlord accounts, but they're just part of Apartments.com now. Check out their Collect Rent Online page.
LeftCoast
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Re: Best Way to Collect Rent Electronically?

Post by LeftCoast »

About one-third of my tenants pay with Zelle. It has worked flawlessly. Tenants used to mail their checks, but they are worried about having their checks lost, stolen or delayed in the mail. Zelle is free to them and free to me. There is an excellent paper trail. My tenants make payments to the building's email address; they don't know my bank account number.

My tenants have accounts at different banks (Chase, BofA, Wells Fargo, etc.) and each bank has implemented Zelle differently. Tenants may have different daily limits, depending upon their credit history. Tenants need to make sure that their rent payment won't exceed their daily limit.

One bank had implemented an anti-fraud measure that limited a sender's first three transfers to a new recipient to $500 per day. TThis meant that it took the tenant three days and three transfers to send a security deposit of $1,500. After that, they had no problem sending their monthly rent in one transfer.

I have not had to deal with shutting down partial payments in the event of an eviction. Heck, around here, there have been no evictions for about nine months, and evictions will probably be banned well into next year.
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Nickel & Dime
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Re: Best Way to Collect Rent Electronically?

Post by Nickel & Dime »

I am a renter, and they have these options:

1. Credit card with a 3% fee :shock:. Yep, that’s what my landlord said... maybe she was wrong???

2. Debit card with a $3.95 fee

3. E check linked to a bank account and a $.99 fee

4. Good old fashioned check put into the apartment drop box= free

These fees seem like a “convenience” charge, but being the frugal fellow that I am, I write the check.

In this day and age, why the charge on the credit card?
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joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

Thanks for all your generous feedback, guys. Took all your suggestions into account. In the end, I decided to go with Zelle on the preponderance of the advice here, and also on the advice of my realtor, who also assists me in managing my properties. It's not a perfect solution, but I guess it'll do, for now. Let's see what happens.
niceguy7376
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Re: Best Way to Collect Rent Electronically?

Post by niceguy7376 »

Nickel & Dime wrote: Sun Dec 27, 2020 3:24 pm I am a renter, and they have these options:

1. Credit card with a 3% fee :shock:. Yep, that’s what my landlord said... maybe she was wrong???
In this day and age, why the charge on the credit card?
Because credit card transactions do incur costs by the middle companies. So someone needs to pay those charges.

For most businesses, they factor that into the cost of business. For a small landlord, they are letting you decide if you want to pay by CC.

My County charges a fee to pay property tax online by CC but free if i use my bank account.
manatee2005
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Re: Best Way to Collect Rent Electronically?

Post by manatee2005 »

stan1 wrote: Sun Dec 27, 2020 12:13 pm
Luke Duke wrote: Sun Dec 27, 2020 12:00 pm
manatee2005 wrote: Sat Dec 26, 2020 10:09 pm People in this thread are trying to help you and you are refusing.
This. I'm not sure why people continue to offer suggestions.
He said he would use Zelle, progress was made.
Cheers!
WS1
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Re: Best Way to Collect Rent Electronically?

Post by WS1 »

If OP is using separate bank accounts for each property, one major zelle roadblock is that you can only link an email address/phone number to 1 account.
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joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

WS1 wrote: Sun Dec 27, 2020 6:23 pm If OP is using separate bank accounts for each property, one major zelle roadblock is that you can only link an email address/phone number to 1 account.
No. I'm just using one bank account (TD).
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Kenkat
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Re: Best Way to Collect Rent Electronically?

Post by Kenkat »

stan1 wrote: Sun Dec 27, 2020 12:13 pm
Luke Duke wrote: Sun Dec 27, 2020 12:00 pm
manatee2005 wrote: Sat Dec 26, 2020 10:09 pm People in this thread are trying to help you and you are refusing.
This. I'm not sure why people continue to offer suggestions.
He said he would use Zelle, progress was made.
Now begins a series of posts from people who haven’t read any of the replies. :wink:
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Abe
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Re: Best Way to Collect Rent Electronically?

Post by Abe »

pasadena wrote: Sat Dec 26, 2020 8:43 pm
Abe wrote: Sat Dec 26, 2020 5:56 pm The tenants just deposit their rent in my account at this branch.
How do they deposit the money? Do they have to go in person to the bank every month?
Sorry for the delay getting back to you. I suppose they could make the deposit electronically, but they don't seem to mind making their deposit in person at my bank. All my rentals that I collect this way are close to the bank, so all they have to do is drop it off at the drive thru window. The advantages to me: I don't have to worry about the check in the mail. I can look at my bank account online to see if payment has been made. I don't have to chase tenants down. It's convenient for my tenants. They get a deposit slip for their receipt showing they deposited the money in my account. This has worked out well for me and my tenants.
Slow and steady wins the race.
Topic Author
joer1212
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Re: Best Way to Collect Rent Electronically?

Post by joer1212 »

Kenkat wrote: Sun Dec 27, 2020 8:21 pm
stan1 wrote: Sun Dec 27, 2020 12:13 pm
Luke Duke wrote: Sun Dec 27, 2020 12:00 pm
manatee2005 wrote: Sat Dec 26, 2020 10:09 pm People in this thread are trying to help you and you are refusing.
This. I'm not sure why people continue to offer suggestions.
He said he would use Zelle, progress was made.
Now begins a series of posts from people who haven’t read any of the replies. :wink:
LOLZ
togb
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Re: Best Way to Collect Rent Electronically?

Post by togb »

I have my rental set up on eRent. The tenants pay through the website, and can use it to build their credit history. I get a notification when the rent has been submitted, and a few days later the money appears in the account I specified.

You can set up late notices (or not), partial payments (or not), etc. There's a fee per payment-- the tenant pays it.
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