Best way to collect rents with no bank account

[Pete Harper]

Ok, I have a dilemma. How is the best way to collect rents if the majority of your tenants don’t have bank accounts. I know it is hard to believe in this day and age but there are a significant number of people who do not have a bank account. They are used to doing everything in cash. Most don’t have smartphones or other gadgets. All the latest Gee-wiz technology is foreign to them.

I’ve finally convinced everyone that I don’t take cash. Their solution is to buy a money order at the corner store. I tried getting them to mail in payments but it takes over a week to travel the two miles from the apartments to my PO Box. I know we’ve all heard the check is in the mail but in this case it is true. All local mail is sent 70 miles North to Dallas where it is processed and sent back to the same post office where it was sent. Finally a postmaster places the envelop in my PO Box. With the time lag we are well into the month before I can be sure rent was payed.

My current solution is to stop by and pick up rent in person. This works for four units but Isn’t going to scale to the 12 units I close on at the end of the month. What are my options? I don’t want people coming to my house, I don’t have an office. What are your thoughts on a lock-box on site? Any other suggestions?