Rent payment options....or not?

[Mike Eisenhut]

I currently own two rental properties and usually collected rent on a contact basis. Each time the tenet would call and say I have the rent when ever you ready to pick it up.

Now, on the Lakewood property this has been no issue. Tenets are usually from a clean background and hold good jobs. Current tenet there is 27 and attorney for a company in Cleveland. The one before her was a executive with PNC bank. At that property rent is usually paid a week before due and in cash (their choice).

The other property is located more towards the inner city and that is another story. We just acquired this property April 2010 and started renting it September 2010. The family that moved in is a interesting situation. The mother is part disabled and has the consumers protection act paying part of her rent ($400). Then there is two female kids of hers living there and one boyfriend. The one sister is paying $100 and the boyfriend is paying $100. Recently they have come of short $100 that was due by the 7th. The boyfriend had quit his job due to hardly making any money and is now low on funds. Actually, he is a really nice guy and the one we usually talk with about any issues or questions (the more mature one to work with). It's really a sad situation with them. The Mom is not all there mentally. The one sister only works at a convenient store for a living. The other one had a child out of wedlock and her and the boyfriend are trying to get their new life started. The mom growing up was from foster home to foster home and abused by different families.

However, this is a business and I want to make sure it is functioning properly. The fact the $100 is late does not bother me. However, it draws a concern for future with them and living there.

I have been thinking about and finally on a system. I opened a new bank account and setup both properties for online payment. It is going to ACH from their checking account when ever they loin and pay. It also will detect late payments and add a $50 fee plus $1 for each day missed on top.

Neither property is on a contract, simply month to month. Am I within my rights as a landlord to notify them I will ONLY be accepting payments by this method? I figured it would be a 2 month in advance notice.

I have the first tenet setup where she is will pay her full rent online. The other family tenets only $200 since $400 is just sent automatically from the moms account.

I don't want to be harsh with any of them. However, if no one has a checking account and can pay online I feel it may not be suitable to rent to them any longer.

Soon I will be on my next property and just want a smooth functioning system.....

Thanks for the input!