PayPal for Rent Payments?
My wife and I own properties as we are long term investors. Because of this we are also property managers and have our fair share of landlord headaches.
Recently though, we have had numerous tenants that are not only have an email address, but use the Internet more and more This is where it may be a good idea to start taking rent payments through PayPal.
A good case for this is #1 you can get a scheduled rent payment that is on time, and it also weeds out people who don't have a checking account to begin with.
What are your thoughts?
I managed several properties OBO my company and had lots of control over collection processes for many years. I accepted PayPal, but fees were high. So two things: 1) Rent was $X when paid with cash, paypal, personal check, or mailed P.O. Money Order or bank cashiers check... or 2) the rent was $X MINUS $30 when tenant paid via their bank''s online (automated) payment option (free for tenant) OR via WalMart''s bill pay service (costs $0.88 for tenant.) I had no WalMart paid rents only because the service was new and existing tenants paid via online bank bill-pay services.
Getting stiffed by tenants on their last 2 months of rent : they bought a house.
Anyway I can obtain my Rent before they close on their house
I think they need my rent in order to close
This might not be efficient for others, but I opened a few ''convenient to my properties'' bank accounts and my tenants go straight to the bank (often with cash) and deposit straight in my account. They either text, call, or email and I confirm recpt. by same method. Love it.
I, in turn, pay the specific properties mortgage(s), any bills, out of the bank account that the tenant is paying into. So, come tax time, all/most records are in the same registers.
I have not had a single problem with this and I have been doing it for at least 3 years -- longer if we include the autopay transfers that my military tenants usually ask to set up.
These days, with free bill pay right on your online bank account info, it is 2 minutes to set up a new bill pay online once all funds are cleared. Also, I can tell if the funds are cash or check because the bank will show the cleared balance funds larger before they even post the specific transaction IF it is cash/cleared. So, I always note my register with C or CK to know if I should check back in a few days. Love it!!