Cashing Rent Cheques

[Mecheng]

I have some quick questions about cashing post dates rent cheques.

1. When you deposit on the 1st will you know if the cheque is NSF on the 1st or is there a delay, 2-3 days to process?

2. Also if the 1st falls on the weekend has anyone had issues with the delay for when the money is actually withdrawn from you tenants account? (Money doesn`t transfer from tenants account until 3rd or 4th)

3. Finally is there any way to deposit the cheques ahead of time and have them cashed on the 1st?

My last question is related to March 1st when we will be away on vacation 3 days before and after the 1st.
I did ask the teller at my bank if I could deposit thru ATM a few days ahead and was told no, it will be rejected.
Other than moving away from the post dated cheque option (money transfer, credit cards) how do we get around this issue?

Thanks
Dan

 

[Jessome]

Is it possible to set up direct deposit with tennants through the banks?

 

[billf]

Hi,

I often deposit my cheques the day before the 1st using the bank machine with no problem. As for NSF cheques, I use Scotiabank and the cheques take 10-12 days to come back NSF some times, and never less than a week. If you find out in 2-3 days consider that good service. Email money tranfer or automatic debit, or have a relative deposit for you while your away.

Hope this helps

Bill F

 

[RogerPanchuk]

QUOTE (Jessome @ Feb 28 2009, 09:40 AM) Is it possible to set up direct deposit with tennants through the banks?


We have set up a direct debit system with scotia bank. It`s the only way to go, we take the money from the tenants account and if there is a problem you find out within a day or two and it tells who and why the payment was rejected.

When we used post dated cheque`s it took way longer to find out who the nsf check was from. You would see the nsf on your account but no one could tell you who`s cheque it was until it came in the mail 2 weeks latter

 

[Jessome]

QUOTE (RogerPanchuk @ Feb 28 2009, 07:39 PM) We have set up a direct debit system with scotia bank. It`s the only way to go, we take the money from the tenants account and if there is a problem you find out within a day or two and it tells who and why the payment was rejected.


How do you do this?

 

[Nir]

I think there is a fee to doing what Roger mentioned. Just deposit them on the first of the month and within a week you should know if there is any return. I make sure not to have any 2 tenants pay the same rent amount, even if it is just 2 cents difference! - this way I am avoiding the issue Roger mentioned of not knowing who provided the cheque. just my 2 cents.

 

[jeffjas]

QUOTE (billf @ Feb 28 2009, 08:37 PM) Hi,

I often deposit my cheques the day before the 1st using the bank machine with no problem. As for NSF cheques, I use Scotiabank and the cheques take 10-12 days to come back NSF some times, and never less than a week. If you find out in 2-3 days consider that good service. Email money tranfer or automatic debit, or have a relative deposit for you while your away.

Hope this helps

Bill F

If you have on-line banking you will find out if cheque is NSF in 4 business days max. I consider that a necessity, I wouldn`t wait 10 -12 days for physical cheque to arrive to inform of a bounced cheque. Most banks and credit unions have cheque imaging on-line, so finding out the name should be easy.

 

[billf]

QUOTE (jeffjas @ Feb 28 2009, 10:43 PM) If you have on-line banking you will find out if cheque is NSF in 4 business days max. I consider that a necessity, I wouldn`t wait 10 -12 days for physical cheque to arrive to inform of a bounced cheque. Most banks and credit unions have cheque imaging on-line, so finding out the name should be easy.


Hi,

I have online banking with cheque imaging, I still get the bounced cheques mailed back to me for evidence(just in case). These don`t come back for 15-20 days. I just went over my account and noted that NSF cheques ranged from 6-8 days(including non-business days) to be updated online, and I had two "Funds not Cleared" cheques that took 12 days to be updated. I actually called the bank to complain about this and they claim this is normal business practices (up to six business day to clear) plus a delay in waiting for funds to be "unheld"??? Funds not cleared is where a person has funds but may have a hold on them.

This is why I always insist on certified funds for follow up payments. What may slow down my process is that I always use the ATM and I hardly ever use my own branch. Therefore I think 3-4 days is good service.

Bill F

 

[RogerPanchuk]

QUOTE (Jessome @ Feb 28 2009, 07:52 PM) How do you do this?


Not all banks offer this servce, check with your bank. It is a bit of a hassel to get qualified and set up and yes there is a charge. I don`t remember what the charge is but I feel its good value for us. We run about 40 doors so we for us we spent alot of time chasing down tenants for more checks and not being able to determine quickly whos check came back nsf. If you have a small portfolio it may not make sence. For anyone with a few properties I highly recommend direct debit.

My 2 cents
Roger

 

[Mitch Collins]

Hi All;

Direct debit would be a good alternative. We are currently using RBC, and doing the old cheque deposit system.

What I like about this is that cheques issues from tenants from another RBC branch (or even the same one you deal with) can show up NSF right at the teller.

Also, with cheque imaging, you know within 5 days usually that a cheque bounced, and you can see online the exact cheque that bounced. If banks don`t allow you to do this, consider opening a seperate bank account for each property. This works well for property with up to only 4 suites...because if a cheque bounces, you`re able to find out who did it much sooner than waiting for the cheque image to show up.

I will be looking into the direct withdrawl option - sounds nice.

Hope this helps at all.

 

[mortgageman]

One of my tenants paid her rent by email this month. It was incredibly easy and bang, the money is there right away. Plus instant record keeping done for you. And as far as I can tell there was no fee.
Talk about hassle-free.
You get an email that the money is waiting to be transferred. You go to your online banking, answer the tenant`s security question and decide which account you want to deposit the money to. The only info your client needs to know is your email address.
I may get everyone to do it and eliminate my recipe box of cheques and monthly trip to the bank.

 

[Anonymous]

I bank with BMO and if I`m planning to go away, I simply bring the cheques into the branch and they cash them on the date I request. It works really well.

 

[Mecheng]

Thanks to everyone for your responses, I love this forum.

So options when your away and need to deposit a cheque are:
Get some one to do it for you if you comfortable giving them access to your accounts.
Some banks will allow you to bring cheque in ahead of time and cash for you on date requested.
Anyone that deals with RBC has done the second option?

So It seems it is typical to have to wait 5 to 15 days to find out a payment bounced.
That`s not very good when the clock is ticking on getting your payment.

I know it doesn`t cost anything to receive e-mail money transfers but it does to send one, with RBC.
Still that is a great option if your tenant doesn`t mind the $1.50 (and remember to send one) each month to pay rent.

Does anyone have anymore information on automatic debit or credit card options?
Obviously it will vary from bank to bank but if you could give a quick run down of the process I think that would be very helpful.
How to explain it to our tenants and go about setting it up between our and their banks.

Thanks again
Dan

 

[NorthernAlex]

QUOTE (Mecheng @ Mar 1 2009, 10:53 AM) ....So options when your away and need to deposit a cheque are:Get some one to do it for you if you comfortable giving them access to your accounts.
Some banks will allow you to bring cheque in ahead of time and cash for you on date requested.
Anyone that deals with RBC has done the second option?
.....

I use RBC too and they were cashing in my tenant cheques during my absence. My branch is not charging anything extra for this service.

 

[Dan_Eisenhauer]

When with a previous employer, we used PAP to collect strata fees though RBC. As I recall, and that memory is 2+ years old now, we knew immediately if RBC customers were NSF. It would take 2 - 3 days for non RBC customers. You can check your online report to determine the status of each payment. That is a far faster return than waiting for cheques to clear and be returned to you.

As for which bank... search carefully. The big five`s fees are higher than credit unions. (North Shore Credit Union in North Vancouver has fees that are about 1/2 of RBC`s, as an example.) But, as has been said, not all banks offer this service.

 

[realfortin]

QUOTE (mortgageman @ Mar 1 2009, 01:48 AM) One of my tenants paid her rent by email this month.

I think there is a 500$ limit for email money transfers. How do you deal with that?

 

[NorthernAlex]

BMO is 1,000 CAD: See http://www4.bmo.com/personal/0,2273,35649_36646,00.html

RBC is 1,000 CAD, too: See https://www.rbcroyalbank.com/onlinebanking/...tips/emt.html#6

CIBC doesn`t say it. See http://www.cibc.com/ca/student-life/produc...y-transfer.html

So I think that the limit rose now to 1,000 CAD.

 

[terri]

QUOTE (realfortin @ Mar 1 2009, 12:48 PM) I think there is a 500$ limit for email money transfers. How doo you deal with that?



you can send more than $500 in an email money transfer.

 

[realfortin]

QUOTE (terri @ Mar 1 2009, 08:11 PM) you can send more than $500 in an email money transfer.
That`s great, they increased it. It is definately an option.

 

[NorthernAlex]

Coming back to the topic:

I collected yesterday the first time the rent of my other 4 units in my 5plex. In one unit are two girls living and both of them gave me one half rent cheque. One cheque of the girls was from her mom and signed from mom.

Now my question:
1) Do you accept multiple payments?
2) Do you accept moms/dads cheque?
3) They live there a long time and I think there shouldn`t be a problem, but just curiosity wise: If one cheque would bounce- who would get the N4? Both or just the girl, whose cheque bounced?

There is no written rental agreement with all units. The previous owner didn`t made one.