My understanding is that banks prefer to do drafts for businesses. While you can do a EFT they will charge more than it is worth. I have an account set up with a bank that has numerous branches. Keep your amount for each property unique so you can tell with audio response who put what in on what day. Have hefty late fees and train them not to be late. Jeff Taylor describes how he will call the persons boss and say it’s an emergency that the tenant call you. Shame them into paying on time. It’s all part of the training.
Posted by TBowen(OK) on November 24, 1998 at 12:56:58:
Has any ever talked to the bank about making a EFT for rent payments?? This would seem like a very good way for us to get our rent on time and would make good payment records for out tenants. Nov more excuses that the “check is in the mail”
Posted by Mr Donald on November 25, 1998 at 24:11:36:
I prefer a draft written on the tenant’s bank account and deposited for rent when due. It gives me the flexibility to deal with NSF checks, and the late fees charged to the tenant.
Try VersaCheck or any of the standard check writing programs that allow you to print drafts on your PC printer.
I would recommend ACH (ACH is a sub-group of EFT - kind of like a next day or future day wire transfer, but cheaper). This is the Automated Clearing House which is the same software that is used for pension distributions, social security direct deposits and payroll direct deposits. It works in reverse as well by directly debited your borrower’s or tenant’s checking or savings account and crediting your account. We offer this service to our self-directed IRA clients who wish their loan payments to be collected from the borrower’s account automatically (the borrower of course must agree). Speak to your local bank representative about it (you might have to ask more than once, branch personnel don’t always know about ACH, so try their cash management representative) or call me at 800-669-0250 and I’d be happy to talk about how we do it to help you get started in the right direction.