While cash is king, stress-free is god.
I hate checks! They are annoying and drive me mad. If I were king of this world, money transfers would ONLY occur through direct deposits, automatic drafts, transfers, or honestly my preference would be my credit card. Using a credit card is the absolute best way because everything comes in one bill.
American Express is awesome in the fact that each authorized user has their own account number. This way you know who spends what. I love it because our business has its own card, so at tax time I look at everything that was spent under that number.
The only bill I am willing to self-pay is the credit card. Everything should be automatic, preferably on a credit card otherwise bank draft.
Why I Choose to Collect Rent Through Direct Deposit
Like I said before, I hate checks. Dealing with checks increases the ability for them to get forgotten by the sender, lost in the mail by the USPS, or forgotten to be cashed. In my opinion, they are as out-dated as records were for us 20-somethings and CDs are for the newest generations.
Therefore, when I first got started, I decided that I was not going to do checks. It was one thing for the security deposit or if something went wrong, but that was not going to be status quo. I didn’t want to deal with them getting lost, forgotten, bounced, etc.
From the very beginning everything has been direct deposit. On receipt of the lease I provide a routing number and account number. I provide tenants with the warning that they need to set it up 4-5 days early as it can take a few days to process. So far so good! It has been easy, amazing, and stress free. It is to the point that I am starting to require it for the security deposit too!
While I am sure there will be negatives at some point, and don’t worry I will most definitely write about it, at this point, direct deposit is my number one way to do it.
PS- If your tenants bank won’t direct deposit into your account. Check out Cozy. For no cost to you the landlord, cozy will act as the go between.9