What's The Best Way for Tenants to Pay Rent to the Landlord? [
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- Опубліковано 31 сер 2015
- www.biggerpockets.com/askbp098
Accepting rent from tenants would seem to be fairly straightforward, but each method has it's upsides and downsides. In this episode of the #AskBP Podcast, Brandon shares several different methods he has used to accept rent from tenants, as well as some dangers to look out for. - Навчання та стиль
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Dont use Zelle. If youre trying to evict , they can make a partial payment which will tie up your eviction process.
Righteous #AskBP video Brandon! That is one of those seemingly minor questions that has major ramifications. Thanks!!
Money orders, quick and clean.
1 They available at post offices and grocery stores.
2 They are all prepaid,
3. Everyone has a receipt.They drop it off at my bank on the due date.
Don’t screw around;
rent is due on the first. If not paid by the third, 30 day notice goes out and eviction papers are filed.
Bob Is The Builder hey I might be ignorant to the topic of paying rent since I’ve recently graduated high school and I am moving out very very soon ! And I was wondering how could I pay my landlord safe and easy and with proof that I paid ! And I thought of money orders !
But my reason for replying to you is to ask more about it. 1. When purchasing the money order do I get a receipt?
Shop Cyberdolls yes, you get a receipt from the post office or cash checking place as proof that you bought it. Also, your landlord should be sending you a receipt
Brittany R THANKSS
If you get a money order you will get a receipt, but its better and cheaper to get a checking account and just write the landlord a check.
@@bbyrevenge3280 yes you get a receipt with money orders
im loving this video! Never thought of the cons of accepting cash rent. A lot of landlords around my area all collect cash like its no big deal. goes to show you the hobby landlords from the Professional landlords. Thanks for the video :)
It shouldn't be a big deal if you're starting off and have around 2 properties (to which you should still use receipts). Once you have more though you should have a system or be making a system that strays away from going door to door collecting cash.
Thanks Bre and Big pockets
Can you guys do an update to this video on current systems?
I got a letter from someone that was sent like 4 years before I got it. That about destroyed my opinion on the mail system
I accept rent on line, Apple Pay and Zella. I no longer accept checks.
There is no way I'm letting a tenant know where I live. I would think direct deposit would be a good idea.
Now we have cash app and PayPal too 😁
I read Craig Curelop's "House Hacking" bk. Today can the tenants use Cozy for on line payments?
Helpful, thanks
Can you please redo this video. Would love to know what you use now.
Tenants should get an account with a credit Union. They offer free cashier’s checks. The tenant has proof when they paid and landlord gets a good check. When it’s cashed, the tenant knows the landlord got their money. Great system. Protects both parties
How about Zelle, Venmo, PayPal, ChasePay as method of payment?
Dean Valenzuela I know a few that use zelle lots of banks support it and just involves opening a separate account and all goes to it. Easy to track
My new landlord suggested Zelle to me for paying my rent and for the life of me, I could not find anything online saying if this was okay to do or not. So thank you for mentioning it.
God bless anyone up to speed with the 21st century!
What do you do if you rent rooms and you collect rent Weekly?
i still go door to door each month..think of it this way.. they know you are coming and any repairs or concerns they have thats the best time to address those things..people feel good to talk to the actual owner of the property who can get things done and not some secretary in an office. it is also good because you can see the apartment and make sure it is not being wrecked and nothing bad is going on. nothing replaces the owner being on site.
I agree, I can't understand landlords who don't even see drive by their property for months at a time.
Good for 1-2 homes but definitely Not scaleable.
Try collecting 30 rents a month... 50? 100?
I guess it works, but I prefer to not have to be nailed to the schedule of visiting tenants monthly to get my rent...then having to return 3 or 5 days later if they don’t have it. I schedule quarterly visits at all my homes to check smoke detectors, HVAC filters, etc.
I love Zelle, works great for my business!
I take IOU's because they have to sign it and date it, so I have hard evidence they owe me - this does not work if they pull a midnight move and you can not find them.
If they have no checking account, the solution is tell them to get one! How difficult is it to open a checking account? There's something odd about someone who seems incapable of doing that!
There are still people who have a hard time having a bank account, they can't manage their money, and the way our banking system works it preys on them with over draft fees
It's none of your business if they have a checking account, in this day and age there are all sorts of online payment apps and there are plenty of refillable debit cards that some people prefer to use and it doesn't mean they are stupid or don't know how to open a checking account.
More importantly if you limit the ability for your tenants to pay, you are eliminating potential tenants.
I would NEVER rent to someone who doesn't have a checking account.
There are plenty of people who will be denied checking accounts from banks due to a history of overdrafts or bad credit. You'd be surprised just how many people do their banking entirely with the cash checking counter at grocery stores.
never rent to anyone who does not have a bank account of some sort...i can think of 100 reasons why someones credit is bad . divorce..huge medical bills etc.. no reason not to have at least a savings account. bank check or money order is the way to go. ill take the occasional cash payment and give reciept but i prefer the other way.
I have them drop payment into my credit union it’s a third party works great
before pressing the like button i pressed the subscribe button
How Dow collect late fees with these
Why would you NOT get a receipt after paying out all that money in cash???
Can you legally turn away cash? The phrase, "Legal tender for all debts public or private" comes to mind. Who puts $500.00 in their car and loses it for months? I prefer direct deposit, but I'll take $ if needed.
Cause he's lying lol
Management Companies are great!
why does my real estate agent insist on cash, even after requesting him multiple times to accept online payments? and he didn't even introduce us to the actual landlord yet after four to five months. I'm from Pune(city and district), Maharashtra(state), India(country).
what does he say when you asked him to introduce you to owner?
It could be that he is illegally renting the property to you, insisting on cash means no paper trail. It could also just be that the actual owner doesn't live nearby, and that he has had problems with tenants bouncing checks in the past.
Would cash app work ?
I have a different issue I need help with. Im buying a house through the owner. We have a legal contract. I only owe 6 more years on my home. Now he is saying, he wants me to take out a loan on the house and pay him off because he broke and needs the money. Well, I checked into that . I would be paying the bank another 23 years if I took out the loan to pay him off. I told him that I just couldn't do that. Well long story short, he been pretty nasty about it. I sent him a check on Jan 30 for feb payment. Here it is feb 14 and he hasn't cashed it. I hope he isn't trying to say im not making my payments so he can force me into foreclosure. How do I make sure that I have proof that I have sent it and he has gotten payment. I was thinking about a certified letter. any help or advise would be greatly appreciated.
SurfSand&SUN you can get loan for 15 years then pay it off sooner too , I would refinance ASAP and own the house
I agree...you don’t want him to foreclose and then you lose everything
I pay with a cheque or a money order I absolutely refuse to pay in cash ever.
Yes I agree, I would never rent to a landlord who demanded cash, even if he offered a receipt for it.
Jermaine Race why?
funny just moved to chicago and looking for my first apartment
Why not just have renter go to your bank and pay by making deposit at your bank for FREE? (Have them email you the deposit slip as proof of payment)
For the same reason that landlords do not want any extra work collecting rent. Tenants also do not have the time to go to the bank every single month.
What about Paypal?
So a quick question anyone can answer when you get the “Security Deposit” from each tenant do you open a bank account for EVERY tenants security Deposit? Also when your renting out a unit for do you need to open 2 bank account for POSITIVE cashflow and Utilities or just 1 account for both and pull your cashflow out? Someone please answer
Here in Tennessee, we do a single account for all security deposits.
We do SFHs with utilities being paid by tenant directly to the provider.
Here’s a simple and correct way to handle your question. You will open two accounts. The first account will be your General business account where can you receive all monies and pay expenses. You will open a second account and label it Trust Account. The trust account will hold all deposits from all tenants. Your allowed no more than $100 of your personal monie into this account for banking fees. I keep $25 of personal in my trust. I’m a licensed Broker and with all my rentals I contract them to the Housing Authority so I don’t have to chase the money. In addition they pay higher than the median rent. Good luck my friend!
It's illegal to have tenants security deposits mixed up with other money on some certain business account and it's called comingling. You must open separate account and can hold all sec deposits there.
Is PayPal a good option?
+Tommy Le The rule of thumb is to make it as EASY as possible for you tenants to pay you. Direct Deposit, online payments, mail box, bank account number. There are many online payment companies that may be worth exploring. Definitely a good question to ask our community on BiggerPockets.com :)
My CHINESE landlord keep ask me to pay rent in cash , I TELL her money order is like cash , She never sign that money order in front of me even I ask her to do every time.
I believe this landlord want to fraud on tax. I'm Chinese, and my previous landlord is also a Chinese. She ONLY accept cash, even no check or money order, but I hate keeping cash cause I started to use credit card since the college. Later, I got to know that she did this for avoid paying tax. If she accept check or money order, it's track-able by bank any time when audited. With cash, it's very difficult to track, by collecting $1200 rent per month, while they can claim $500 income per month when file tax.
Short and direct answers, definitely not.
Quick answer Brie..... E-TRANFERS.
5 second answer.
My tenants drive over to my bank and make a deposit into my account. No mail!! No cash !! Bank deposit, period.
I like that idea!
Aren’t you then allowing partial payments? Banks don’t require that any specific amount be deposited. Allowing partial payments here in Tennessee is asking for trouble.
How do you know who paid what?
Paypal or cashapp
2018..direct deposit that money right into my account thank you
bishop198666 cash becomes available in how many days
im not sure if that is a statement or question...if your asking how long it takes for that direct deposit to be available for a cash with drawl? the answer is..same day...at least where i live and with my bank
bishop198666 ok same day Thanks bishop Much success Amigo
Until your tenant makes a partial payment and you have no power to evict. Now you can’t charge a late fee and you can’t evict.
Hayden Timm That’s exactly my experience here in Tennessee. I think this varies among states though.
Cash app 🤷🏽♂️
My tenant pays using google pay. So far so good
Thanks for sharing - I just want to pay the rent mr. mailman.
AAAAMMMAAAAZZZIIINNNGGGG!!!!
What kind of person loses 500 dollars of rent
Taking cash is just distributing a trip to the bank from a tenant to me. No. YOU go to the bank. Im not going for you.
Cash payment with receipt is fine. In some states it is illegal to not accept a cash payment. Any landlord afraid to stop by is an absentee landlord. Mailed rent in some states is by post mark. This guy is not a good landlord.
This is way way way toooo complicated.
Rent should be payed in coins from a 12 guage straight into the landlord's corrupt blackened soul