QUOTE (llee @ Aug 14 2009, 10:24 AM) Hi,
Is anyone experienced in setting up a debit account for monthly money collection, if the other party has given me a void cheque?
How much does it cost?
Thanks.
We set up "automatic withdrawals" with all our renters. Most banks have their own forms, but we used it to create our own with our logo, etc and TD Canada Trust accepts that. They call the tenant to confirm that they are in agreement, then set up. Works great
Is anyone experienced in setting up a debit account for monthly money collection, if the other party has given me a void cheque?
How much does it cost?
Thanks.
We set up "automatic withdrawals" with all our renters. Most banks have their own forms, but we used it to create our own with our logo, etc and TD Canada Trust accepts that. They call the tenant to confirm that they are in agreement, then set up. Works great
QUOTE (Cargren @ Aug 14 2009, 12:36 PM) We set up "automatic withdrawals" with all our renters. Most banks have their own forms, but we used it to create our own with our logo, etc and TD Canada Trust accepts that. They call the tenant to confirm that they are in agreement, then set up. Works great
"Automatic withdrawals" - does the payor have to be the same bank as I do?
I don`t see it anywhere on TD webpage. How much is the set-up fee and how much does it cost?
"Automatic withdrawals" - does the payor have to be the same bank as I do?
I don`t see it anywhere on TD webpage. How much is the set-up fee and how much does it cost?
i explored that option with TD (pre authorized debit)... pretty costly if you don`t have a lot of renters willing to do it... you can check with the branch...
About the a credit card payment solution method, you set up your self with an IVR solution (lower cost).. i.e you will be set up with a merchant account and you process any credit card transactions over the phone, transactions get approved and the $ gets processed and settled into your bank account within 3 days... you can email me at [email protected] and i`ll put you in touch with our merchant solution department contact...
I do work for that company which is co-owed by Royal bank and bank of Montreal... we do offer point of sale and payment solutions for all Canadian merchants... 45% market dominance in Canada... www.moneris.ca
Cheers,
Eddy
About the a credit card payment solution method, you set up your self with an IVR solution (lower cost).. i.e you will be set up with a merchant account and you process any credit card transactions over the phone, transactions get approved and the $ gets processed and settled into your bank account within 3 days... you can email me at [email protected] and i`ll put you in touch with our merchant solution department contact...
I do work for that company which is co-owed by Royal bank and bank of Montreal... we do offer point of sale and payment solutions for all Canadian merchants... 45% market dominance in Canada... www.moneris.ca
Cheers,
Eddy
Hi, Correct me if I`m wrong but isn`t simply depositing cheques from tenants (without any automatic withdrawals), about the same amount of work whether you have 3 tenants or 30 tenants - one short visit to the bank on the first of each month? In other words, isn`t automatic withdrawals set up really a non-significant improvement in terms of efficiency managing our business? Thanks.
QUOTE (investmart @ Aug 15 2009, 09:02 PM) Hi, Correct me if I`m wrong but isn`t simply depositing cheques from tenants (without any automatic withdrawals), about the same amount of work whether you have 3 tenants or 30 tenants - one short visit to the bank on the first of each month? In other words, isn`t automatic withdrawals set up really a non-significant improvement in terms of efficiency managing our business? Thanks.
Absolutely right, but remember that you have to arrange to get those cheques in the first place, and then another set when those run out. That adds time and effort to the job. We run our business this way (post-dated cheques), largely because it gives us a reason to go visit with our tenants and to see the condition of the property in a natural way.
Absolutely right, but remember that you have to arrange to get those cheques in the first place, and then another set when those run out. That adds time and effort to the job. We run our business this way (post-dated cheques), largely because it gives us a reason to go visit with our tenants and to see the condition of the property in a natural way.
QUOTE (GarthChapman @ Aug 15 2009, 09:58 PM) Absolutely right, but remember that you have to arrange to get those cheques in the first place, and then another set when those run out. That adds time and effort to the job. We run our business this way (post-dated cheques), largely because it gives us a reason to go visit with our tenants and to see the condition of the property in a natural way.
good point Garth and also good idea to use the opportunity to inspect the unit. with the automatic withdrawal system you also have to arrange that... whenever a new tenant moves-in. so if on average your tenant stays for 2 yrs, collecting cheques requires only one additional visit every 2 yrs.
(assuming you get 12 post dated cheques each time)
good point Garth and also good idea to use the opportunity to inspect the unit. with the automatic withdrawal system you also have to arrange that... whenever a new tenant moves-in. so if on average your tenant stays for 2 yrs, collecting cheques requires only one additional visit every 2 yrs.
(assuming you get 12 post dated cheques each time)
I love Pre-Authorized Payments.
And, NO, it is not the same amount of work as using cheques. With PAP, you preload all of your payments into the system once. From that point on, you click SEND each month, and the system takes care of the rest. You wait two to three days to get an NSF report before reconciling your statements.
Your bank will make withdrawals from other banks. You need the Tenants to sign a PAP form, regardless of which bank they use.
As for cost... I have found the larger charter banks to be very expensive, so use a credit union for my PAPs, at about 1/3 to 1/2 the cost. Unofrtunately, my own CU does not allow PAPs for individuals, so I use another one, and have them transfer that money into my prime CU accounts. Awkward, yes, but it works.
And, NO, it is not the same amount of work as using cheques. With PAP, you preload all of your payments into the system once. From that point on, you click SEND each month, and the system takes care of the rest. You wait two to three days to get an NSF report before reconciling your statements.
Your bank will make withdrawals from other banks. You need the Tenants to sign a PAP form, regardless of which bank they use.
As for cost... I have found the larger charter banks to be very expensive, so use a credit union for my PAPs, at about 1/3 to 1/2 the cost. Unofrtunately, my own CU does not allow PAPs for individuals, so I use another one, and have them transfer that money into my prime CU accounts. Awkward, yes, but it works.
Is it very complicated to change the deposit amounts for example when you do annual rent increases? Are you required to get some type of approval or confirmation from tenants or there banks to make changes?
How do you collect late fees etc? Would that require the same effort as if a regularly deposited rent check bounced?
Also in regards to those seeing post dated checks as a reason to visit a unit I am assuming that you are seeing this as an addition reason to visit not simply the only time you visit a unit during a one year period.
Personally my tenants mail me there post dated checks for the year in December and I find one trip to the bank each month the simplest method as I usually combine it with other banking business anyway.
I like the hands on approach as opposed to electronic systems. I`m old school I guess but do not feel, if properly organised, it requires any more time or effort.
How do you collect late fees etc? Would that require the same effort as if a regularly deposited rent check bounced?
Also in regards to those seeing post dated checks as a reason to visit a unit I am assuming that you are seeing this as an addition reason to visit not simply the only time you visit a unit during a one year period.
Personally my tenants mail me there post dated checks for the year in December and I find one trip to the bank each month the simplest method as I usually combine it with other banking business anyway.
I like the hands on approach as opposed to electronic systems. I`m old school I guess but do not feel, if properly organised, it requires any more time or effort.
I have been using Interact money transfers (emails) for collect rent from my tenants. At the end of the month, the tenants send me an email payment and I deposit into my cheque account. No waiting to clear cheques.
http://www.interac.ca/consumers/productsan...ices_ol_emt.php
http://www.interac.ca/consumers/productsan...ices_ol_emt.php
My experience has been that changing the amount of the monthly payment is not cumbersome at all. Once someone signs a PAP agreement, it is the payee who controls how much is withdrawn, not the payor. The agreement does not get shown to the bank. At least that was my experience three years ago with RBC.
Changing PAPs at the CU I use is more challenging, in that they set up and change the PAP. You need some form of authorization for increases, whether it is Strata minutes or rent increase notice, or a revised PAP form.
The only reason creditors ask you to submit a voided cheque is to ensure the Payee gets all the banking data, transit #, etc, correct. Most people, including me, would look at you with a blank stare if you asked them for their transit number.
Once set up PAPs are a breeze to use.
Changing PAPs at the CU I use is more challenging, in that they set up and change the PAP. You need some form of authorization for increases, whether it is Strata minutes or rent increase notice, or a revised PAP form.
The only reason creditors ask you to submit a voided cheque is to ensure the Payee gets all the banking data, transit #, etc, correct. Most people, including me, would look at you with a blank stare if you asked them for their transit number.
Once set up PAPs are a breeze to use.