topic Re: Collecting payments on rental property in Personal Finance

Collecting payments on rental property

Anonymous — Tue, 05 Mar 2019 00:07:53 GMT

Not sure if this is the right place or not.

But I was wondering how other people collected rent from tenants? Currrently I just accept a check and deposit it. But have recently been thinking of taking an extended vacation, as well as actually moving abroad for a couple years. Which would mean no access to mail or those funds while away.

Is there a way to electronically accept rent without hiring a property management service, or giving tenants access to your bank account for deposits? Pay Pal and the like charges fees. While I've heard of this Zelle, I'm not sure if it's appropriate for this type of transaction.

Re: Collecting payments on rental property

wasCB14 — Tue, 05 Mar 2019 01:04:34 GMT

Paper checks. Anything else would be too complicated for the old guard.

Re: Collecting payments on rental property

tcbofade — Tue, 05 Mar 2019 01:26:29 GMT

Depends on the quality of your tenants...

Some time ago, I lived in a rental home owned by a man who owned several of the surrounding houses...generally, we each wrote checks and put them in a bucket in one particular garage... landlord would stop by and collect them as warranted.

When he was out of commission for awhile, I collected those checks and made the deposit for him.

Got one you can trust?

Re: Collecting payments on rental property

Soelden — Tue, 05 Mar 2019 03:30:18 GMT

I use quickbooks. Automatically sends them an invoice every month and they pay through that protal. They can log in through most major banks and pay online. Tracks and stores everything, sends receipts, etc. Its affordable and I would think at least something similar would be necessary for people who have multiple properties.

Re: Collecting payments on rental property

Revelate — Tue, 05 Mar 2019 03:58:54 GMT

If you're going out of the country for several years aren't you either selling the joint or hiring a property management company anyway?

It won't be as if you're in a place to do much of anything if you're that far away.

Re: Collecting payments on rental property

800FICOGoal — Tue, 05 Mar 2019 04:44:10 GMT

@Anonymous wrote:
...But have recently been thinking of taking an extended vacation, as well as actually moving abroad for a couple years. Which would mean no access to mail or those funds while away.

@Revelate wrote:
If you're going out of the country for several years aren't you either selling the joint or hiring a property management company anyway?

It won't be as if you're in a place to do much of anything if you're that far away.

As I will be in a similiar situation soon, I would like to know how the OP would handle that situation as well.

Re: Collecting payments on rental property

Anonymous — Tue, 05 Mar 2019 04:46:43 GMT

Yeah, if you are going out of the country, collecting rent is the least of your concerns. You need a property manager period. Whether it is a professional service or friend you trust does not matter. The point is you need one.

Re: Collecting payments on rental property

wasCB14 — Tue, 05 Mar 2019 05:01:12 GMT

I'd add that most of our properties are local and vacations are uncommon enough as to not overlap.

Some basic property management can be done long-distance...if you have very good business relationships with a skilled plumber, electrician, etc.

Re: Collecting payments on rental property

JTC-137 — Tue, 05 Mar 2019 05:13:49 GMT

OP we use Zelle to pay our rent. We don’t have access to the recipient’s bank info; all they need is your email or phone number that you link to Zelle. Deposits are sent, accepted, and credited within minutes.

Re: Collecting payments on rental property

Anonymous — Tue, 05 Mar 2019 18:50:55 GMT

It wouldn't be permanent move, just a chance to explore a region without having to fly all the way back home in between.

I've owned this house for several years, as it was my first home purchase. Due to my work I move around a lot, so I rent out my house to offset costs and to keep it from sitting empty and deteriorating. I don't own several rental units, so i didn't feel a management service was needed.

My Sister still lives next door to the property, so she could handle day to day tenant issues that could arise. But as for accepting the actual Rent, I prefer not to put us in a situation for potential fallout. I've seen Money ruin relationships far to often. And she isn't the most responsible with finances.

To date I haven't ever had any major issues with anyone, other than an appliance repair/replacement. Granted, I've not been that far away before so I would lilely have some learning curves. Though I do know the local plumbers etc. so a simple phone call could handle utility type issues with a CC.

My main concern was how to collect the rent so that I could pay the mortge payment on the house, without having to pay out of pocket or racking up fees.

Thanks JTC-137, Zelle sounds like the best option. At least for a test run.

Re: Collecting payments on rental property

Anonymous — Wed, 06 Mar 2019 20:46:09 GMT

Why exactly do people think giving someone their bank account number is risky? Do these people realize... it was not THAT long ago that you wrote a check for EVERY thing you bought?

Your routing and account numbers are clearly printed at the bottom of every check.

That being said, it's less convenient for your Tennant to drop off at the bank. You could have them give the check to your sister next door. Or you could use one of the electronic p2p payment systems. Zelle, venmo, cash app, Facebook, PayPal (friends and family is free)... These methods save you, them AND your sister from driving to the bank to make the deposit... They're also free, except PayPal if the person doesn't choose friends and family. I try to avoid that one for that reason.

Not because the alternative is unsafe... Because it's inconvenient.

Re: Collecting payments on rental property

DaveInAZ — Wed, 06 Mar 2019 22:20:36 GMT

I rented out homes twice while living out of the area. In 1999 my employer transferred me to Las Vegas so I rented out my condo in Honolulu. But Hawaii has a state law that if you don't reside in Hawaii you must have a Hawaii based property manager, so that's what I did.

In Vegas I bought a house in 1999. The next year the house next door went into foreclosure and I got a great deal buying it, and moved into it and rented out the first. Living next door is a great way to be a landlord, I told prospective renters that not only will I be your landlord but I'll also be your next door neighbor. About half walked away at that, but I got a great family who rented the place. In 2003-2004 I got a gig working on a hotel project in Morocco. I forget what I did exactly 15 years ago, but I'm pretty sure I just gave them deposit slips to my bank account, and I could see from online banking when they paid the rent.

But this day and age Zelle, People Pay, or PayPal Friends & Family is probably the way to go.

Re: Collecting payments on rental property

Anonymous — Thu, 07 Mar 2019 02:14:24 GMT

In many states to collect rents you have to be a real estate firm. Firms have many options collect only, collect and minor repair w/o calling owner so forth. DW firm does management for short term projects where owner has just bought rental unit until they get a full time co. Every town has several real estate firms that manage residential properties for a small fee. Typically you agreement calls for them to make minor repair upto $xx with out calling you and over that amount requires your approval. The rental co can remmit your money to you monthly, quarterly or when ever you specify. At one time DW and I owned over 50 units personally and collected rents for a reit that owned over 1,000 units. It was not fun.

Re: Collecting payments on rental property

OmarR — Sun, 10 Mar 2019 22:58:55 GMT

@Anonymous wrote:
Why exactly do people think giving someone their bank account number is risky? Do these people realize... it was not THAT long ago that you wrote a check for EVERY thing you bought?

Your routing and account numbers are clearly printed at the bottom of every check.

That was the past. Welcome to the present!!

Granted, I have paper checks for a "play" checking account. I think I have written ONE check in the last decade. But as for people that write checks from an account that has all their money in it? No thank you. Not only that, but a check has no guarantee for availability of funds. Not sure how any of the other methods (Zelle, etc) handle that, but it's got to be better than a paper check.

On a semi-related note, for those of you making payments or (a) one-time negotiated payment to a collections agency, NEVER, NEVER, NEVER send them a personal check. They will use all the info on the check to drain the full, unnegotiated amount. I have several friends in the collections world and they do this all the time.