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  • best way to collect rent

    We bought a rental property that we (finally) have a tenant for. What are the best pays to collect rent? I was going to have the tenant zelle to the account which I manage the property from. I've read about other options like apartments.com. Any other thoughts?

  • #2
    1- Keep the money in separate account using Zelle, Venmo, check etc whatever works for you and tenant is OK.
    2- Read the state laws about security deposit etc. You may need to keep the security deposit in an interest yielding escrow account etc.

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    • #3
      My son’s most recent apartment landlord only would accept payment by check in the mail, I would recommend any other option.

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      • #4
        If you are going into the landlord business, it is a good idea to automate the processes and make them as professional as possible without driving costs up. Along those lines there are several good (some free) rent payments services that might appeal to technologically savvy tenants and that are easy to use. I know people that use apartments.com and also Cozy. Both fine. Many other options.
        5 Best Online Rent Payment Services for 2021 (fitsmallbusiness.com)

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        • #5
          I wouldn't download a new financial app just to pay rent, especially one that I've never heard of (zelle). My tenant texts me the rent using Interac but that was my tenant's choice, I had actually requested cheques since apparently I am a dinosaur...

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          • #6
            Originally posted by Shant View Post
            I wouldn't download a new financial app just to pay rent, especially one that I've never heard of (zelle). My tenant texts me the rent using Interac but that was my tenant's choice, I had actually requested cheques since apparently I am a dinosaur...
            This is fair. I actually do checks paid by mail, but I have long term tenants that literally precede the modern app based payment systems. They have no interest in learning a new system and wouldn't trust one. However, among family and friends starting out as landlords, all I know are using online systems. The good systems make the collection process quite simple.

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            • #7
              zelle goes straight to your bank account, many banks support it (chase, capital one, first republic all do). No need to download any app for it. Confirm w persons name and phone number.

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              • #8
                I pay my Landlord via Zelle (I requested we use PayPal or Zelle - Venmo just didn't feel right). We did a trial $5 transfer to confirm account numbers and it has all been automatic since then - we are both very happy with the arrangement.

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                • #9
                  I would have two Italian guys named Knuckles and Tommy Two Fists go collect it at the beginning of every month.

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                  • #10
                    Originally posted by CordMcNally View Post
                    I would have two Italian guys named Knuckles and Tommy Two Fists go collect it at the beginning of every month.
                    I was gonna say shotgun but your answer is better...

                    My spouses aunt carries a handgun for such. No thanks..

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                    • #11
                      We use zelle for some of our properties and it works fine. We have a separate bank account only for rental properties.

                      However, for higher rent properties, they have to make 2 sequential payments as the zelle daily limit of $5000 is too low. Nevertheless, they prefer this to sending a check.

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                      • #12
                        My leases required automatic payments be set up. Never had a late payment in the 8 years I was a landlord.

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                        • #13
                          Originally posted by DocNextDoor View Post
                          My son’s most recent apartment landlord only would accept payment by check in the mail, I would recommend any other option.
                          I had a landlord that collected $3k by check and $800 cash, every month. He drove 4 hours (round trip) to pick it up himself so he could "look at the property" (never came inside). He also asked my wife to bring him the security deposit (2 mo rent) + last month's rent = $11,400 in cash before we moved in. Hard nope on that one.

                          This is also the landlord who nickle and dimed me after 2 years when I patched some holes left by shelves and used the paint they left behind to paint them, complaining it didn't look professional.

                          I lived in that house for 2 years and hated it. But my commute was good?

                          F that noise. This landlord is 100% the reason I wanted to own my own home.

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                          • #14
                            Dinosaur here. I still get checks in the mail which can be a bit of a pain but overall works fine. I suppose if one of my tenants wants to change to an electronic payment it might be a better option. I'm hoping to wrap things up with my rental side gig in the next few years.

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                            • #15
                              Originally posted by StateOfMyHead View Post
                              Dinosaur here. I still get checks in the mail which can be a bit of a pain but overall works fine. I suppose if one of my tenants wants to change to an electronic payment it might be a better option. I'm hoping to wrap things up with my rental side gig in the next few years.
                              Same here -- good old cashier's check. One of these days will do zelle if they ask. They haven't

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