I am curious about the direct deposit system I have seen on the internet. Does anyone have any experience using these services? The main idea is that the tenants monthly rent is automatically deducted electronically and placed into your bank account. They seem like a good idea, any pros/cons or recommendations of services to use? Appreciate it
I have used direct deposit for rent monies for four years and have minimzed rent collection headaches substantially. It is set up via the private client group at my bank.
At the beginning of the lease, tenants are provided with a contact at the bank. It is specified in the lease that rent must be paid this way and that funds must be deposited prior to the first business day of a month.
This works well when travelling and has increased the qualtiy of my life.
Lord have mercy, HOW do you get your tenants to do that? I am impressed. Some of my tenants get paid bi-monthly so I get paid the first pay period of the month which can be as late as the 15. It don’t really bug me until they have that ‘mergengy’ that delays payment longer.
I ask them why they can’t pay me with the 2nd pay period from the prior month!!! I guess life don’t work that way for some. If I remember my younger days, it didn’t work that way for me either.
The direct deposit idea sounds good however, listening to one of the free audio books (telephone conversation) posted ont his site I heard some interesting points made.
You should always have a plan for your property and one of the points should be to increase profitability. One of the items that does this is collecting late fees. If the rent is pay automatically via direct deposit it makes it hard to get late fees???
What about damages that are owed?..I collect those with the monthly rent check when necessary.
When the tenant has the ability to direct deposit you dont have an option to not accept the rent (important if you are trying to evict). You also dont have an option not accept partial payments???
Just food for thought.