I send rent invoices each month with a self addressed envelope. I estimate it costs about $70.00 per month in hard costs to send these out. So almost $850 per year. That doesn't include my time.

Just my opinion. But to me that seems a total waste of time and money.

People are used to paying rent or mortgage on the first. Should not have to be reminded.

We offer a couple options. They can setup direct deposit from their own bank.

Or I give them a couple years supply of custom large deposit slips from my banks account. And a list of all the local bank branches in the area.

They can just use the deposit slip which pays the rent at the bank.

They can even use the after hours night drop.

I go online and can see a pic/image of the deposit slip. Which has a line or place on it that the tenant has written in the property address.

So far has been working great and is sort of just like giving the tenant a coupon payment book.

So we did exactly what you are doing for many years. Yes, you receive rents, but when you don't the excuses abound--

1) put it in the wrong box( Dropbox payment)

2) forgot the stamp

3) mail got lost (or not really)

4) payment says one date, received it late

Take those excuses out of the equation for your sake.

I don't know about your tenants, but ours rarely used the envelopes anyway.

We switched to direct deposit only. The invoices only go out when they are late AND the bank is the third party that tells us when rent was received- not a money order or check dated 5 days ago but received yesterday.

If you feel bad about it, ask your tenants to switch to emailed invoices AND offer a $5 onetime credit for anyone who does. No invoice needed? $10.

One time $5 credit for anyone who signs the form to switch to direct deposit too. Many, many tenants prefer doing this over mailing the payment. I offered nothing to my tenants AND THEY SWITCHED ANYWAY!!

I sent a letter just saying we are changing the way we receive payments. We put on the letter the bank addresses within five miles of them. We send them twelve prefilled forms with the bank account number written in and the address so we can recognize who paid. We enticed them with a location that is closer to their home (than the Dropbox)AND noted they save money because they do not have to buy a money order, a stamp, etc. One stop shop. I am not sure in your state, but you

could also mention that their use of this method notes that they have agreed that this is an acceptable way to pay their rent.

My life is SO much easier and we save money, time and worry.

Eventually get to the point where it's automatic and set up in the lease that way.

Good luck!! :)

don,

Why?

40 years and over 30,000 rent checks here. Never sent invoices. No need.

We TAKE the money out of their account with autodraft.

If there is a problem such as insufficient funds in their account we send a 3 day text and usually have our money in 24-48 hours.

We also do not accept payment by mail. Too slow, too many hiccups and delays. For the few who must pay by money order (agencies, cannot get a checking account due to bad history...) we have box at The UPS Store and a Deposit Only account at the bank with 5 branches around town.

Back in the day invoices and envelopes were the thing. No longer necessary.

I send invoices monthly via email using Quickbooks invoice system. It's automatic. I set up a new tenant, and then Quickbooks emails the invoice for me monthly. I'm requiring new tenants to pay through Quickbooks by clicking on the invoice. The payment goes through ACH and is deposited in my checking account typically 2 business days later, sometimes 3.

Really this takes no time on my part at all. It's all done by Quickbooks after the tenant is set up. Quickbooks charges me 50 cents per transaction.

BTW, the invoices are emailed on the 27th of the month. I'd say a large percentage of my tenants have paid prior to the 1st. Invoicing has been away to keep the rent payment in front of the tenant.

No you don't have to do it. But my rent collections have never been better. If they have not paid by the 1st, I invoice them again.