What is the best way to Collect Rent

Question

HI,

What is the best and safe way to collect rent? I know some House Owner would not prefer personal check or would not provide their house address to Tenant to mail check.

Kyle J. · Answer

I allow my tenants to:

- Mail payment to my PO Box

- Deposit money directly into my account at the bank

- Pay online via Zelle

- Set up automatic payments via Cozy

There are pros and cons to each of them, but they all work (and are all free).  My least favorite options is to have them mail payment to my PO Box, because it requires me to go get it and sometimes also drive to the bank to deposit it (if it's a money order since you can't use mobile deposit with those).  Fortunately, all of my current tenants have gotten away from mailing their payment and choose to use one of the other three options.

Kimberly Yang · Answer

What makes me wonder is the fact, that you do not want to provide your address. But in the lease, you must provide the address of the owner anyway. In the paperwork for the Courthouse as well, how do you get around that.

The paperwork of our court even has:"The address where the tenant can pay rent."

Connie Chan · Answer

Tellusapp.com is the one I use. Main reason is the flexibility it offers me and my tenants. The tenant is able to switch from ACH bank transfer to credit card if they're having a hard time making rent that month, and then back. The ACH transfers are all free and the landlord is able to enforce late fees. I often end up waiving my late fees (my tenants are usually on time), and the platform lets me waive it which is also something I like. Like other users have stated, there are lots of options out there. For me I wanted something free, mobile, automatic that would give me notifications if a tenant paid or not and that's what led me to Tellus. I have heard good things about the other landlord specific options, too. The key is to choose something that's specifically made for rentals. Much higher chance those platforms have considered legal protections for you and ways to make sure your tenants don't avoid paying rent!

Kimberly Yang · Answer

No, we do not file any leases with the court, I may have been unclear in my post (English is not my first language, sorry), but in case of an eviction, the address of the owner must be given as well as in the lease itself, the address of the owner must be provided to the tenant.

Even if I use a Post Box, they can simply look it up from the tax appraiser´s website anyway. It is posted only for everyone to see. In my case it is obvious anyway since I live in the same community as all of my rentals and I am a member of the Board of the HOA anyway.

But it has always bugged me, because all the books on land lording give the same piece of advice: Never tell them your address.

Marc Winter · Answer

@Kimberly Yang, here in PA, owner's address can certainly be a PO Box or UPS address.  We don't ever file leases with any court here, but it has been quite a while since I was involved in rentals in your area, so that might have become practice there.

@Akshar Deri -- If the you are looking for the 'best and safest' way to receive rent, I'd offer tenants several options on paying in the lease; on-line (about 70% of our tenants pay on line--research and select the service that works best for your situation), direct deposit, ie eft, paypal, credit card, or tenants can go to your bank and deposit--just provide them proper info.

DO NOT provide a tenant YOUR PERSONAL RESIDENCE ADDRESS.  In the real world we all must live in, it just is not a "best and safest" policy for a tenant to know where you reside.

Again, PO Box or UPS 'suite' address works fine, and although it might take a few minutes to drive there to pick up the rent, it provides a certain amount of safety and privacy, which to me, is well worth the effort.

Best of luck

Ray Harrell · Answer

Not all of us have tenants with bank accounts and phone apps. Some of them can't even afford to pay extra to get a money order. There are cases where you have to go pick up rent and times when it will be cash. In those cases, the best way to collect rent is quickly, firmly, and with a Glock.

Thomas S. · Answer

It depends entirely on the landlord. What should never be done is for landlord to go to the tenant to pick up rent. Many landlords have excuses for doing this but it is extremely poor training to have tenants expect their landlord to be at their beck and call.

It makes it very easy for tenants to avoid paying on time without incurring late fees since it falls on the responsibility of the landlord to collect the rent as opposed to the tenant having to pay the rent on time.

Matt K. · Answer

I use zelle PayPal and acoh. Zelle the best because it's in app for most major banks and it's nearly instantaneous.

Deren Huang · Answer

I also would suggest an online payment, I like using Cozy also, very easy to set up, but it does take a bit of time to transfer.

What is the best way to Collect Rent

Most Popular Reply