Rent payments through Zelle in IL?

[Kate K.]

Hi BP Community!

If a Landlord is not considered a business yet (properties are not in LLC), what I was told by our bank is that our tenants cannot set up direct deposit with us. So we were offered Zelle, Venmo or PayPal. But I am not sure about either of those, not necessarily trust them, except maybe Zelle.. Sure, checks are always an option. Has anyone used Zelle? What are pros and cons? I know that Venmo cannot be used for business purposes, only for personal use. So that's out.

And my main question: is it allowed by law in the State of IL to collect rent payments from tenants through Zelle and what is best for direct deposit, if properties are not in LLC yet?

We were trying to set up direct deposit payments with already 2nd renters on our 2nd property, but no luck so far with either 1st ones that moved out or our 2nd ones who are moving in. Our very 1st renters on our 1st property did set it up 3 years ago without any problem through ACH their direct deposit rent payments (it was easy and smooth process and we receive payments without any issues for these 3 years), but on our other property already 2nd renters that are trying to set up direct deposit are having the same issue (and they are banking with the same bank Chase, as our other renters do, who did have luck). Any suggestions are welcome!

Thank you!

[Jared Hottle]

that is confusing the bank would say that. I have properties not in llc and I only do direct deposit with my bank but it is done through apartments.com so maybe thats why the bank is okay with it. I have heard alot of people using zelle or venmo with great success but I am with you I am just not fully trusting of it.