Where Should I Have My Tenant Send The Rent Checks?

Question

I'm in the process of purchasing my first rental property and trying to get all my ducks in a row. As of right now I have't settled on a property management company and not sure how long it will take to settle on one. But I might have to  collect a couple rent checks in the interim. I was wondering if most landlords use there home address to receive checks or do you use PO Box or some other method?

Mike Nelson · Answer

I use a site called ClearNow it allows the tenants to pay with their bank account and you can have it direct deposited in your account.

Anthony Murphy · Answer

I have my tenants mail their rent to my PO box.  I have all of my mail go there as well.  Everything I own has my PO box as my mailing address as well.  I have had some unhappy tenants in the past, I don't want to give them my address.  If they want it they can get it, but not without some digging.

Tony

Tim Czarkowski · Answer

I used to have them mail them or drop them off at my house but as I have expanded we now use a PO Box at the local UPS store. They will actually allow the tenant to come in and drop off their rent. I pick them up some times from the lower income rentals because several of them like to pay in cash. I think I'm going to start forcing them to also mail a certified check or money order. I never had a problem with unexpected visits when they were mailing or dropping to my home.

However the main reason I have switched to a PO Box and put my properties into an LLC with the PO Box as the address was because of a property I was flipping. I had a previous owner who I had to evict who then trashed the property and then attacked me the next day while I was on the phone with my insurance company. The attack happened while the police were inside the condo writing their report! After that I was worried for a while the guy may show up at my house. I didn't even need to go to the eviction but it was my first time, so I wanted the experience. I'll probably let my contractor handle it from now on. lol That way not only will they not have my address but they won't know who I am.

Joshua Dorkin · Answer

Do you want your tenants to know your home address?  If so, use your home address.  If not, I recommend using an alternative method for collecting rent.

Direct deposit or online rent payment tools are definitely good choices.  Arranging to pick up a certified check or money order is another alternative.

Regardless of what you do, remember that there are a lot of crazy people out there. Be sure to be safe as you run your rental business.

We've got many outstanding articles that I think you'll find very helpful on the topic of getting started as a landlord on our BiggerPockets Blog.  I highly recommend you search through it and the forums for feedback to help you get up and running.

Rob K. · Answer

I make sure that all of my property tax records have my PO Box on them. Several cities that I deal with say in bold letters "NO POST OFFICE BOXES" for addresses. I still put down my PO box and they have never said anything.

There are a lot of crazies out there and if you're evicting someone, you don't know how desperate they could become. I don't want anyone knowing where I live. I have kids at home.

Also, with a post office box, it makes it virtually impossible for a disgruntled tenant to sue you.

I would say it's definitely worth the $60 per year. I have some tenants deposit into my bank account as well, but in my state you're required to give an address to tenants and it must be on the lease.

Also, you probably live in a nicer home than what you're renting. As soon as a tenant sees where you live compared to where they live, they might cop an attitude.

Jason Kosowan · Answer

I usually do either electronic direct deposit or, for less tech-saavy renters, I sometimes give them a book of deposit slips to use.  It seems to work well - nobody has had trouble with it so far.

But, one thing I would recommend is to open a separate bank account for your rental.  Also get some cheques for that account and pay all your rental expenses from that.

I think it's a bit more secure and you can look up online all of your rental expenses and income in one place come tax time.

Chuck C. · Answer

I use the direct deposit method as well.  However, anyone can look up your property tax records and find your mailing address which could be your home address or whatever you use.  I have two SF rentals properties and another one under contract to purchase.  With those three, I still wouldn't consider using a property mgmt. company.  Not that it's wrong but there are only three checks to collect and the economies of scale are not to the point to where I think I would be better off utilizing someone else.  It's really not that time consuming.....just one more reason I got into this.  I would suggest learning the ropes on your first one, save yourself 10% or whatever the going rate is and just see how easy this can be.

Zachary Dosch · Answer

I personally pick up the rent checks for the SFH. Gives me an opportunity to glance in the house to make sure everything is under control.

David Niles · Answer

I second that and all landlords I know also do.

Kyle J. · Answer

I only give out my PO Box and I have all rent payments mailed there.

Where Should I Have My Tenant Send The Rent Checks?

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