Alternate rent collection methods

[Jeff K.]

I have a long-term tenant, an elderly lady, whose grandson that had been living with her moved out recently. He had been dropping off the rent for her monthly. Consequently, it is now difficult for her to get her rent to us on time. She does not have a credit card or checking account (its a C- neighborhood) and does nothing online. I offered pre- stamped envelopes but she is nervous to send by mail because she pays by money order.

I thought of giving her a deposit slip, to make the deposit monthly, as there are bank branches closer to her than our PO box. But, I don't want her to have access to the account.

Short of me picking it up every month, does anyone have any ideas of how to make it easier on us and her to get the money to us?? Anyone have any similar experiences?

[Steve Rozenberg]

It is an interesting problem, we used to have that issue when we owned properties in those types of areas. We used to try and come up with every clever idea and they always had a reason to fall short and not make it happen which only frustrated us even more.

A very experienced owner finally I guess had enough watching me fail that this and explained it to me very simply. "You have been a landlord for a fraction of a time, they have been tenants their whole lives. Who do you think knows the rules better? Either they are teaching you or you are teaching them and from the looks of it they are teaching you how they are going to operate."

So going off of that mindset we gave the tenants options of paying online (yes even low income tenants will do it), or Taking it into the bank themselves. If they mailed it or dropped it off at our office there was a $15.00 admin fee. Believe it or not they all amazingly figured out how to pay online or take it into the bank.

You just have to make it their problem and then you will see things happen.

Just my experience of how we fixed the same problem you are having.