Dealing with renters who only pay Cash?

[Julie Fullmer]

Oh the school of hard knocks....

We have handled being landlords all wrong but now are trying to educate ourselves. How do we go about teaching our renters to be good renters when we started out wrong?  For one we didn't have a 'no cash' policy in our lease. (actually it just never dawned on us that there might be people who didn't use normal banking protocols.) I was excited to hear Brandon mention the cash paying thing he uses. (I forgot the name of it) but it isn't available in NM. They are not really good about being punctual but do pay the late fees. The biggest issue is trying to streamline things so my MIL who is acting as agent for us doesn't have to deal with trying to meet up with them to get the rent etc.  The lease doesn't renew until Oct. We will be visiting in a few weeks so we can set up some new protocols just not sure how to approach this?

[John Underwood]

I like cash. I use a smaller bank that still accepts cash deposits into someone else's account. I give the tenant my account number (it is in lease) and they are responsible for depositing the rent directly into my account. No middleman skimming a fee for taking a payment. Tenant gets a receipt for his cash deposit. I can go online to my bank and see who has paid the rent.

Just remember that every time you write a check to someone you are giving them your account number. They can't do anything with just an account number.

I do not chase anyone for rent. They deposit in my account or I file an eviction. They get trained or they get gone.