Using Cozy for ACH transfers. Automating rent payments

[Nick Bleser]

I'm thinking about using Cozy for ACH bank transfers. I'm hesitant because there is a 5 day processing period. For those that use Cozy do you get a notification that the transfer is in process? If someone initiates payment on the 1st of the month it's possible the rent won't be received until after the 5th(which is the end of our grace period).

Any thoughts on Cozy or other means of automatic rent payments are appreciated.

Thanks in advance!

[Jake DeBoer]

If payment is sent/initiated by due date I consider that on time. This is the same as when I used to collect checks, if I received check by due date it was considered on time even if it took me a few days to deposit. It's up to the tenant to ensure they have sufficient funds, if a Cozy payment fails or a check bounces I then charge the tenant a fee (assuming this causes it to be late).

If you're really concerned you can take what @Jonathan Cope does one step further and require payments on, say, the 25th in your lease. That would require no explanation to tenant about processing times as that's just when it's due.