Automated Electronic Rent Payments (apt complex, tenant, rental property, deposit)

[WSPHXPELON]

Hi all I'm currently in the process of purchasing my first rental property and am researching the best ways to fully automate rent payments so my tenants can pay via ACH Transfer.

Do you do this with your tenants, and if so what have you found is the best way to do this?

I am currently looking at Cozy.co as they have a fully electronic Landlord/Tenant interface. Does anyone here have any experience with Cozy, or if not any other way you have found effective for receiving electronic rent payments?

[MrRational]

Originally Posted by WSPHXPELON

purchasing my first rental property and am researching the best ways to fully automate rent payments

A completely wrong approach... especially for a one and only.
If/when you get to the point you have a lot of payments to keep track of... maybe.

Paper check, envelope and stamp work fine.
Dropping by to collect is even better.
That's right... better.

Then you don't need to create a reason to drop by and check on things.

[Lovehound]

I've never found any usable system in three years of searching. Furthermore tenants may not want that. It's not unusual that on occasion some of my tenants do not have the money on time. An ACH transfer is going to fail if they do not have sufficient funds.

Also what MrRational says: not worth the trouble unless you have more than one unit.

My own method is that I supply tenants with deposit slips showing my account and total as their full rent payment (PDF). My bank has 3-4 branches within only a couple miles of each of my rental properties. So far none of my tenants has had any problem with this other than my bank will not accept such payments from third parties if they are in cash.

I suspect some of my tenants may have worked out ACH from their end depending on features their bank offers customers. I never asked.

All I care is that the money gets there, and gets there on time, and stays there.

[unihills]

Venmo seems a simple solution, been using it for about 1/2 a year. Free and easy. Check it out.

[generalswife]

I have a 3rd party payment system and I pay $10 per month to use it; the tenants pay $1 per transaction. However, half of my tenants prefer to pay by cash. I will discontinue the convenience in a few months, because as Mr R said, picking up rent gives me the opportunity to check on the property and I get some tenant gossip at the same time.

[Katie1]

My apt complex want Only Checks or Money Orders.... they wont even except Cash or Credit Cards.

[Lovehound]

It's not good to deal in cash, too much chance of misappropriation particularly if the payer does not get a valid receipt from an authorized payee.

When a merchant or other business accepts payment via credit card their credit card processing service charges them about 3 percent of the payment. That is why many utilities refuse to accept credit cards unless they charge a credit card fee.

[tommy64]

Have the tenants MAIL a check or money order to your P.O. BOX. I'd advise against giving them your residence address for a "stop by your hose with the rent". Propriety must be maintained.

And always verify the correct amount before deposit so you don't take any partial payments.

[ptt]

I accept online payment only. Have been using rentpayment.com since 2010.

[credit6]

Originally Posted by ptt

I accept online payment only. Have been using rentpayment.com since 2010.

I prefer online payments and so glad I no longer have to write out checks anymore. The money just comes right out of my checking account when I make online payments.