How do you collect rent in a sustainable way when a tenant...

Question

How do you collect rent in a sustainable way when a tenant lives right next door to you? I have a tenant that is renting the other half of a duplex that I'm "house hacking" in that wants to start giving me a cashiers check for the rent instead of going through "ERentPayment".

For the first few months of her being at the property she's been on ERentPayment and it's worked out fine.....until today when i got a notice from them that says her payment to them was returned due to insufficient funds. I texted her this and she immediately texted back saying she would get this handled today.......and that she would like to start giving me cashiers checks from now on instead of going through ERentPayment.

Last year when I bought the duplex, I made it clear to all prospective tenants that the way i collect rent is through "ERentPayment" because I am not a landlord that chases down tenants to collect cash, or checks or cashiers checks, etc. This is also in the lease agreement that I have all my tenants sign at the properties that I have. She signed that lease last year where it states this.

Obviously it's "convenient" for the tenant to know she can simply drop the check or money order over to me because I essentially live next door.....but what she doesn't know (because it's none of her business) is that later this year I will be buying a fourplex with an owner occupied FHA Loan and therefore will be moving away from her so obviously she won't be able to just drop the check over to me at that point.

I have another property with tenants in it and they are on "ERentPayment" and it's working out really well.

Any advice from the BP forum will be appreciated.

Lois Ginter · Answer

I live at my properties, and I allow them to pay in any method except personal check.  They are my customer, so I work with them.  I actually like to engage them so they feel comfortable about letting me know about any issues.

Mike Cumbie · Answer

@Brian Garlington

"Hi Mary",

Insert pleasantries and happy happy go lucky things

Insert random thoughts about the weather and how crazy it is that there is a new Costco going in on Main street.

"I'm sorry I have to have you go through (insert name of online place you use)".

"All of my properties go through there and at the end of the year everything comes up in one form for tax purposes". "I am able to keep everything organized and in one place, If I start taking one off checks it will complicate the work across the board". "Thank you so much for your understanding"

MIchael Rickerd · Answer

I wouldn't demand the single payment system from my tenants. I personally don't like online system after online system having my account/credit/debit card info. Perhaps your tenant feels the same.

I would much rather have a tenant pay me with cash/cashiers check and go home content that they paid rent on time, rather than demand that they pay me via a certain medium and they go home (to my house by the way) upset, complaining that the landlord is mean and pushy over something that may appear to the tenant as very simple. This could create animosity towards me, resulting in negative repercussions to my property. Not worth it to me.

Jeff Sprunger · Answer

they live right next door, take the checks.  use your online system for other properties.

Rick S. · Answer

Hi John,

Private domains are very common for businesses to avoid identify theft attempts through the WHOIS database and to avoid spam email as we don't use the private domain to hide our physical address.  We don't list our physical address on our main site as we had too many tenants try to send us paper checks, which we don't handle.

Where did you find the information on Mississippi, and when, as we didn't find any instant search limits for the state of Mississippi?  There are certain states that don't allow instant criminal online searches, however according to our research Mississippi is not one of them.

Brian Garlington · Answer

@Mike Cumbie

@Jeff Sprunger

Thanks fella's............much appreciated.

Rob Orazi · Answer

I agree with @Lois Ginter. that tenants are your clients. You should make it very easy for them to give you their money. As your number of units grow you may find folks that aren't computer savvy or have an aversion to allowing a 3rd party access to their account. I realize that this possibly puts more administrative burden on you but if you have a tenant that pays on time, work with their preference. You don't have to chase them just make it easy for them.

Thomas S. · Answer

It is your choice to set your payment requirements, regardless of your choice it is always the tenants responsibility to insure they have delivered the payment to you by the due date. Method of delivery is irrelevant as long as you receive it by midnight on the day it is due. Landlords do not "chase" tenants for payment except in the case of tenants avoiding paying. You are not ever required to pick up a tenants rent payment.

Rick S. · Answer

Hi @Brian Garlington if you need any assistance from us send me a message or contact us as we can discuss some options for the tenant to see how we can make our system work.  Not sure if the return was due to her pay schedule or something along those lines.  Thanks.

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