Tenant wants to pay electronically. Some advice please - Posted by Mike

Posted by PBoone on December 09, 1999 at 12:27:59:

Each bank has similar yet different guidelines to do electronic tranactions. Contact your bank to see which method and set is best for your specific needs.
I can tell you electronic payment has worked well for us

Tenant wants to pay electronically. Some advice please - Posted by Mike

Posted by Mike on December 09, 1999 at 12:17:07:

I am going to do a lease option with a tenant/buyer that wants to pay me via electronic withdrawl. She gets a government check every month that will be electronically deposited into her bank account. My question is, can I instruct my bank to withdraw the funds each month? What do I need to do in order to get her bank to allow the withdrawl?

Thanks for the advice.

Auto Debit! - Posted by Scott (AK)

Posted by Scott (AK) on December 10, 1999 at 13:18:54:

Contact your bank like was suggested below, tell them you would like for them to auto debit another persons account for their rent payment each month. They will give you a paper to have the tenant fill out with information about the account, the routing number, and other vital info. Have the Tenant sign it and take it back to your bank to set it up.

I use this on almost every deal I have done. It’s extremely simple and the form for the T/B to authorize it has become a standard form in the stack of papers of how we do business.

If you do a lot of deals you might want to consider it. I love just simply logging on my computer and looking at the deposits each month.

Good luck

Scott (AK)

What we had to do. - Posted by John J.

Posted by John J. on December 10, 1999 at 24:15:14:

I have the exact same situation (IRS employee, lease-option). She set it up with her bank, but payments were missed for several reasons. So when my bank opened up a branch in her town she established an account with them and had her paycheck deposited into it. Now this bank transfers the funds from her to my account like clockwork. My bank also has free dial-in capability, so I can check (and manage) my account on-line.

Is it by allotment? - Posted by Emmett-NC

Posted by Emmett-NC on December 09, 1999 at 19:16:45:

I am in the Army, and in order to do something like that we fill out an allotment form. In the form we put the routing number and the account number for the allotment. That amount of money is then deposited to that account via direct deposit. See what kind of form your T/B is using.

Re: Tenant wants to pay electronically. Some advice please - Posted by Bud Branstetter

Posted by Bud Branstetter on December 09, 1999 at 16:09:53:

I have a government employee that has the half the amount of the mortgage payment electronically deposited to my collection account every two weeks. It is good to establish consistantcy of the payment. I also have one that has it electronically transferred from their account. I got a surprise one month when after I checked it over the phone that the transfer was reversed. I didn’t catch it until the next statement. They are the ones that have to instruct the bank. You just give them The ABA and account number. I also would want the tenant to have some history with you and I would sweep the account so there was not a lot of accumulated cash.

Re: Tenant wants to pay electronically. Some advice please - Posted by Glenn

Posted by Glenn on December 09, 1999 at 14:36:20:

Is tenant using a bill payment service? If so, you can get regular check from them, so tenant intiates payment and controls timing. If you e-debit account, you could get into fights about overdrafts, etc. If you have online banking (you should if it is free), you can check your balance online to see when tenant’s payment has hit. In this case, you can have the tenant’s bill pay servicer e-transfer to your account directly (faster), and be assured that you can find if tenant has payed on time.