Can rent be paid from a payroll "draw" or garnish

Question

I'm asking this question from a current rent (lease) situation. Example : A tenant just doesn't manage their monies well. So can I set up with an employer to pay the rent direct from their wages weekly?

Linda Weygant · Answer

One issue here is that for a direct deposit, the name of the employee has to be on the bank account to which the deposits are made, so I'm not sure this will work for you.

It sounds like your tenant would do fine with a weekly rent payment though.  So if they've got direct deposits on Fridays from their employer, you can work with cozy.co and do an ACH withdrawal on the same day and it sounds like it will work out pretty well.

Sandy Glover · Answer

Mark,

Great question. You should contact your attorney as laws governing collecting rent and garnishing wages vary from state to state.

Have a great day,

Sandy

Mark Bradford · Answer

I spoke with my accountant yesterday and he said the same thing as Hugh Ayles. This came from a possible tenant  that has had a recent eviction. They were renting a high rent home and got over their heads and want to go to a lower rent home.  They said they would let me pull the rent from his check weekly to guarantee the rent payment.   I'm debating if this is a safe way fill my unit with might be a good tenants that just wants to make a life change for a better financial decisions

Kevin Harrison · Answer

This is an interesting topic. I'm going to have to follow this thread.

Hugh Ayles · Answer

If the employer does direct deposit, the employer can have part of a pay check go to a seperate account at the direction of an employee.

As for garnishing, you would have to check with local authorities.

Nate Burnett · Answer

@Mark Bradford, as someone just starting off, have you looked at cozy.co? Free to landlords and the tenant can setup an ACH draw, you can have it pull direct from their account to yours. It may be less of a legal hassle than going through an employer draw.

Can rent be paid from a payroll "draw" or garnish

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