Auto rent payment?

Question

I only hav two rentals now. One tenant has  been sending me the rent checks to my mail box on time via his bank's auto payment (the bank will issues a check monthly). I would like the check deposit to my account directly rather me going to the ATM to deposit the check every month. My bank told me that my tenant could do auto pay by mailing the check to the branch I went, payable to me with my account number. The check tenant issued has left the their bank account, but not deposited to mine. Have you tried this method to collect your rent? Some people on the forum here mentioned: their tenants do direct deposit, how do you do that? Is there any other way I can automate the process. Now I am trying to rent the 2nd house out, there will be a new check each month to deposit.  Advise on how to do auto rent payment please!!!!

Rob Gillespie · Answer

Ling, 
I have a guy with a service that pulls it out of the tenants checking account and wires it to yours. If you are interested, let me know. :mrgreen:

They will even pay your mortgage and taxes. You get what is left!

Greg Ford · Answer

I have one property that the tenant and I share the same bank.   In that regard, he was able to go to the bank (couldn't do it online >$1000) and have them setup an automatic transfer to my account on the 1st every month.   The branch can get over the $1000 limit that is in place for online transfers.

I tried to figure out how to do this with a routing number and account number (like an ACH deposit), but everywhere I talked to wanted fees to do this.

Curious if anyone else has this setup and if so how they did it?

Ling S. · Answer

Hi Jim,
Thanks for your reply! How do your tenants deposit the money to this 2nd account? Do you physically go to the teller with your name and account number?

Jim S · Answer

I set up a second account at my bank which is only for tenants to make deposits. I then use online banking to transfer the $$ to my main account. I always felt better having the two accounts segregated.