Payment Options

[MikeMcC874]

In the building I just bought I have 2 tenants that pay cash. I understand that some of these people do not have bank accounts and cheques cost money etc.

Are there any ways for these folks to pay me via the mail that does not cost them additional money?

Money orders cost I believe.
I don`t want to provide them my account info to have them deposit directly.

Thoughts?


Thanks
Mike

 

[JBagorio]

QUOTE (MikeMcC874 @ Dec 31 2009, 01:16 PM) In the building I just bought I have 2 tenants that pay cash. I understand that some of these people do not have bank accounts and cheques cost money etc.

Are there any ways for these folks to pay me via the mail that does not cost them additional money?

Money orders cost I believe.
I don`t want to provide them my account info to have them deposit directly.

Thoughts?


Thanks
Mike
Hi Mike,

What I have done in the past...I opened a sort of a temporary account (you can do this online if you have access) and gave to my tenants to deposit their rent into. I then transfer the funds manually to the actual account after I have received it.

Just a side note...it really doesn`t cost much to open and maintein a chequing account. In the past years as I have acquired more properties I set as a mandatory item to have post dated cheques for the first of the month. I find it very helpful I don`t have to run around for payments. Some times during my tenant selections I use this as one of the red flag indicators. If the tenants are not able to provide me with the damage deposit along with the first moth rents, and worried about little fees and expenses I begin to worry and wonder if the will be able to afford my place.

 

[invst4profit]

Why is cash an issue for you.
It is your tenants responsibility to insure you have payment in hand by midnight on the first of the month not your responsibility. They must come to you, you do not have to chase them.
Let them burn up money for gas and waste time finding you and then see if they decide to open up a checking account.

 

[Nir]

QUOTE (JNB @ Dec 31 2009, 02:20 PM) I opened .. account .. and gave to my tenants to deposit their rent into. I then transfer the funds manually to the actual account after I have received it.

I did the same. just open an account and give them the information. I consider it very safe! (I know others do not)
Alternatively, you can offer to pay for their new cheques - it does not cost much. the down side - it might give them the wrong impression about your generosity.

I always suggest either 12 post dated cheques or direct deposit and let them choose the method THEY prefer. giving them the option to chose is more important than the method itself. it`s called building relationship with the most important people in your life. (even family will not pay your bills, ha ha but your tenants do.)


The catch/reason you do the above is BOTH methods are actually good. 99.9% of the tenants who will give you hard time collecting rent will do so regardless of the payment method - whether they provided post dated cheques OR deposit directly. In other words, the payment method is never the real issue. it`s more complicated than that and related to the way they were brought up, their environment, their values and unfortunately in some cases it is really their financial situation.

Cheers.