Tenant depositing rent into landlord`s bank account - common practice or risky business?

[Nir]

Hi All,

One of the tenants in the property is not willing to provide post dated cheques but is willing to deposit the rent monthly into the landlord`s bank account.

Is it OK to provide the tenant with the business account number or is it not recommended for safety reasons?

I prefer not to open another account just for rent deposits unless you strongly recommend I do. The reason is it is more simple logistically to have just one account for everything.

Have you done the same with any of your tenants or have you opened another account just for rent deposits - not mixing your business account with tenants` deposits, for safety reasons(?)

Again, I`m tempted to have just one business account for everything and do not really see it as a significant safety concern unless any of you tells me otherwise(?)

THANKS!
Neil

ps. there is just one tenant suggesting this option at the moment (so I`m not releasing the info to many tenants). Also, whenever you pay using a cheque, you provide your account information too as it is mentioned on the cheque. that`s why I am assuming it is supposed to be safe to provide a bank account number.

 

[valerie]

I`ve heard of landlords giving their tenant a bank card to the account with access to DEPOSITS ONLY.

 

[Thomas Beyer]

many options:

cash (not preferred), debit machine, credit card, EFT / automatic debit from tenants account (VERY much preferred), bank card with right to deposit only, post-dated cheques, money orders

Why not give the tennat the follwoing option: pay by cheque or money order and pay $800 .. or allow us to pull money from your account (fill in this EFT form here that any bank will give you) and pay only $775 (or $800 with a $25 rebate).

Many tenants will opt for this EFT (electronic fund transfer) option !

 

[JeffSmith]

QUOTE (thomasbeyer2000 @ Feb 26 2008, 11:24 PM) many options:

cash (not preferred), debit machine, credit card, EFT / automatic debit from tenants account (VERY much preferred), bank card with right to deposit only, post-dated cheques, money orders

Why not give the tennat the follwoing option: pay by cheque or money order and pay $800 .. or allow us to pull money from your account (fill in this EFT form here that any bank will give you) and pay only $775 (or $800 with a $25 rebate).

Many tenants will opt for this EFT (electronic fund transfer) option !

Hi Thomas,

What would be the advantage of a rebate? Income reporting, I am guesing.

Jeff

 

[albainstar]

are there docs somewhere on this site for the transfer to be set up, that the bank will accept?