direct deposit rent (by sylvia [IL]) May 14, 2011 1:16 PM|
direct deposit rent (by Elizabeth [MI]) May 14, 2011 1:23 PM
direct deposit rent (by Sylvia [IL]) May 14, 2011 1:28 PM
direct deposit rent (by J [IN]) May 14, 2011 2:11 PM
direct deposit rent (by sylvia [IL]) May 14, 2011 2:20 PM
direct deposit rent (by J [IN]) May 14, 2011 2:24 PM
direct deposit rent (by Erin [FL]) May 14, 2011 2:40 PM
direct deposit rent (by Jeffrey [VA]) May 14, 2011 3:06 PM
direct deposit rent (by Elizabeth [MI]) May 14, 2011 3:58 PM
direct deposit rent (by LL [AZ]) May 14, 2011 5:02 PM
direct deposit rent (by Jenny [MO]) May 15, 2011 5:45 AM
direct deposit rent (by Wendy [NC]) May 15, 2011 7:32 AM
direct deposit rent (by CarolJ [CA]) May 15, 2011 7:49 AM
direct deposit rent (by LLTim [CO]) May 15, 2011 12:46 PM
direct deposit rent (by Wendy [NC]) May 15, 2011 2:00 PM
direct deposit rent (by rebekka [TN]) Mar 4, 2013 2:14 PM
direct deposit rent (by sylvia [IL]) Posted on: May 14, 2011 1:16 PM
One of my tenants wants to do some sort of direct deposit for rent, but my bank told me it is risky to give out my checking account number because people can buy things via phone or internet with just that and the aba #. (I know this is true because I've paid bills that way before.)
So is there a better way to set up direct deposit without having to give out this information? Do any of you do some sort of electronic direct deposit of rent, and if so, how do you do it safely without opening a commercial checking account and having it cost you money? Thanks for any responses.
direct deposit rent (by Elizabeth [MI]) Posted on: May 14, 2011 1:23 PM
I have 29 tenants directly depositing into 3 credit unions (whatever one is in their town). They don't even have to have an account there. They just go in and say "my name is ____, I would like to pay my rent to my landlord (name______).
I tell them to always get a receipt in case of some sort of error, but I've been doing it for 5 years and there has never been one yet. Larger banks often won't do this.
The only disadvantage is that if you have to give tenants eviction paperwork, they can negate it by making a partial payment. I almost never have problems like that...so it hasn't been an issue. (Also most tenants don't know that making a partial payment will make you have to start the process over, so they don't bother...usually if you are to the point of taking legal action..you aren't getting ANYTHING from them.) --99.156.xxx.xxx
direct deposit rent (by Sylvia [IL]) Posted on: May 14, 2011 1:28 PM
Doesn't the tenant have your account number to do that? That's what I've been told is risky. --98.142.xxx.xx
direct deposit rent (by J [IN]) Posted on: May 14, 2011 2:11 PM
Set up a separate account for there deposits then sweep the money out after rent pay day. Do not link it to your main account. Then if they want to do Direct deposit they can do that too. --67.236.xxx.xxx
direct deposit rent (by sylvia [IL]) Posted on: May 14, 2011 2:20 PM
I don't mean to be the devil's advocate, but they still have my account number and can overdraft my account (of course I'm talking worst case scenario - anyone I write a check to could do the same thing). I'm just wondering if there is a safe way to do this. --98.142.xxx.xx
direct deposit rent (by J [IN]) Posted on: May 14, 2011 2:24 PM
They have your account number on all your checks and whoever you give them to. If your that worried about it don't do it!! --67.236.xxx.xxx
direct deposit rent (by Erin [FL]) Posted on: May 14, 2011 2:40 PM
Exactly as J says. Your account number is on every single check you've ever written. Not very hard to get, so not something you should be worried about giving. I doubt the bank really thinks it's that risky, otherwise they wouldn't give you checks with the account number on every one. --72.189.xxx.xx
direct deposit rent (by Jeffrey [VA]) Posted on: May 14, 2011 3:06 PM
sylvia, if you use a third party company like Clearnow (which is one of the sponsors of this site), you do not have to give residents your account numer, and the rent is automatically withdrawn from the resident's account each month. I've been using their direct rent deposit service for years, works well. Click the "Services" link above for more info. --64.12.xxx.xx
direct deposit rent (by Elizabeth [MI]) Posted on: May 14, 2011 3:58 PM
With the credit union, when they get a receipt they don't have the account number on it.....however, it will show the account balance (so to avoid them thinking you are loaded, sweep the balance to another account on a regular basis). They just have to have your name, not your account number. --108.85.xxx.xx
direct deposit rent (by LL [AZ]) Posted on: May 14, 2011 5:02 PM
Yes, as the above. We have a rent account. People pay into it and we transfer the money out into another account online. We never write checks on that account so if there was fraud or if somehow someone did overdraft it, it would not affect anything we do and we would lay it back on the bank.
We provide a deposit slip with each invoice.
Is it perfect? No. Much better is an auto draft system, "if" the tenants have money in the bank, which most of ours don't. That is one reason we don't use it, we would end up with a bunch of headaches and the tenatns would be angry because of overdraft fees, etc.
I think auto draft works great with solvent tenants would have steady jobs. Are there any of those left? If so I will pay a finders fee for them. LOL
direct deposit rent (by Jenny [MO]) Posted on: May 15, 2011 5:45 AM
I started to let tenants deposit rent in our account several month ago. I like it. It save me so much time and gas to pick up rent. no mail problem excuse. I would think it is crime for anyone draw money out of our account and I am not responsible for it. --70.242.xxx.xxx
direct deposit rent (by Wendy [NC]) Posted on: May 15, 2011 7:32 AM
We've used the "Tenant Deposit" method for many years, and no problem. After all, as pointed out above, your bank account number and routing number too are on every check you write. The tenants only have the account number.
All of my tenants have a 'unit number' that they add to their money. $.01, $.07, $.21 so that I know who made the deposit.
I tell them keep receipts. I also tell them it's up to THEM to get it in the bank by closing!
Sometimes tenants forget the account number and I just text it to them. I used to provide little stickers with it on there, sometimes I still do. --173.16.xx.xxx
direct deposit rent (by CarolJ [CA]) Posted on: May 15, 2011 7:49 AM
Jeffrey, can a LL insist that rent has to be paid that way? The way things are in CA I'd be surprised if we could demand that arrangement. Any CA LL have any experience with requiring rent payments made via Clearnow or similar service? --64.34.xxx.xx
direct deposit rent (by LLTim [CO]) Posted on: May 15, 2011 12:46 PM
Wendy NC, there's no extra security when tenants only need to specify an account number for a payment like this - routing numbers are not secrets. Anyone with any account at the same institution or who has seen any check from that institution has it.
I would imagine there are also directories that list those numbers too. I don't think this means there's unreasonable risk, but it sounded like you may think there's some protection that I don't think is there. --71.208.xxx.xx
direct deposit rent (by Wendy [NC]) Posted on: May 15, 2011 2:00 PM
Oh no, I was just pointing out that the account and routing are on every check anyway, so what does it matter if you give someone your account number? They need to know more than that to get money out of it? --173.16.xx.xxx
direct deposit rent (by rebekka [TN]) Posted on: Mar 4, 2013 2:14 PM
I have also been requiring tenants to go to my bank to deposit their rent. It has worked so well! I just wanted to add that I asked the bank not to put my balance on the deposit slips, so the tenants would not know my balance. I tested this a few times by having my mom make deposits, and after a few tries the bank has gotten it right :) --192.183.xxx.xxx