Rent Collection Question

[Chris Gilliam]

Hey All,
So we just bought our 2nd rental property. On my first one i drive by and collect the rent every month. However now that we are adding another one, and soon a 3rd. I don't want to make a habit of this for all my tenants. So, I have several ideas but wanted to see what everyone else does and thoughts.

Option 1: Start a new bank account and give that to the tenants to have the money deposited by the 5th of the month.

Option 2: Have them mail the check to me to be received by the 5th of the month.

What do you all do and what works well?

Thanks,
Chris

[Aaron Mazzrillo]

Each house gets its own bank account. The tenants get 12 deposit slips with their lease package. The have to go inside (no cards) and deposit the rent with the teller. The bank receipt is their rent deposit receipt. I can log in anywhere in the world and check the accounts. Once the rent is in, I clear it up to the general account. The accounts stay $0 balance the rest of the month. If the bank requires a balance, find out what the minimum is and leave that in there.

I've been doing it this way for 10+ years and have never had a problem. I don't have "I mailed it out last week," "it got lost in the mail," or any other BS excuses. I don't have to be home the beginning of every month to collect checks. I don't have to drive to the bank to make deposits. I just look online. Adopt this system and enjoy your freedom. That's what it is all about isn't it?