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  • Bev
    replied
    Zelle

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  • White.Beard.Doc
    replied
    Originally posted by The White Coat Investor View Post

    Wow. Pretty high end rental properties. I don't know if I could even rent my fancy-pants house for $5k a month. Maybe par for the course in a HCOLA though.
    It is an alternate universe in this high priced, coastal market. We bought a townhouse a few months ago to renovate (so my spouse could rack up the REPS hours on the reno). We thought it would be a reasonably solid but not so great investment, but it would unlock the bonus depreciation deductions on out of state real estate investments that will shelter all of my medical income (by qualifying my spouse for REPS).

    Purchase price of townhouse: 840k
    Renovation: 140k
    Went to multiple bids on the rental, even before renovation completed: $7000/month
    Got an offer on the townhouse last month, just prior to completion of renovation at 1.35MM

    Oh well, we aren't selling as we already had a one year lease with the new tenant for $84,000, and if you flip houses, the gain on the sale is considered regular fully taxable income. If we rent for a year, then the gains become capital gains, and we can 1031 into another property in a higher yield market with no tax owed, assuming the tax laws don't change.

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  • The White Coat Investor
    replied
    Originally posted by White.Beard.Doc View Post
    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.
    Wow. Pretty high end rental properties. I don't know if I could even rent my fancy-pants house for $5k a month. Maybe par for the course in a HCOLA though.

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  • PhudInvestor
    replied
    Most of my properties I let the Property Management company do it. Isn’t the goal to be a passive investors? My hangar is the only rent I get by Zelle.

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  • Hank
    replied
    Best way to collect rent?
    In full, in cash, and in advance.

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  • StarTrekDoc
    replied
    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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  • StateOfMyHead
    replied
    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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  • danesgod
    replied
    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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  • ENT Doc
    replied
    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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  • White.Beard.Doc
    replied
    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.

    Leave a comment:


  • childay
    replied
    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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  • CordMcNally
    replied
    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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  • MDPhD_wishingitwasanMBA
    replied
    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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  • billy
    replied
    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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  • Larry Ragman
    replied
    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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