Setting up automatic billpay for tenant?

[M Ness]

Does anyone have their tenants paying rent with automatic billpay every month?

I've just closed on my first property and will hopefully be renting it out very soon. I'd prefer not to have to rely on the tenant remembering to get the check in the mail on time every month. Automatic billpay right into my checking account would be much more convenient for both of us!

How do I go about setting this up?

[Bob Mastroianni]

When I bought my first multi-family, the tenants that I acquired were used to a system when the landlord would visit them on the 1st of every month (or whenever he could make it) and pick up the rent from them. Some paid by cash and some paid by check. I followed along with the same process for a short amount of time & realized that this put all of the responsibility on me. I had to make sure I went there to pick the rents up. And, after collecting the checks/cash, I had the responsibility to go make the deposits & wait for the checks to clear. This process was costing me time & money (I had to drive to the location & pay a toll to get there).

After about a year, I decided to look for a good option that would help to streamline this process. I started using www.erentpayment.com and I am really happy with it. I have been using it for about 5 years. My tenants adjusted to it well. They can set up Auto-Pay if they choose to. I have the system send them a reminder on the 28th of every month about their upcoming rent payment. It automatically adds in any late fees, if necessary & I get an email as soon as my tenants make their payment.

There is a $3 fee for each transaction that you can either pay, have the tenant pay or split between the landlord and tenant. I chose to pay it, which makes the tenants feel like they're getting a benefit from using. I can also run reports that show all of my transactions, which is great at tax time.

I hope this helps.