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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Collecting rent through Pay Pal?
I wanted to set up some sort of electronic payment with my new tenant since we are in different states instead of using mail.
Has anyone done this through paypal or another method?
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Posted 8/12/10 2:07 PM  |
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Prudential Douglas Elliman Real Estate
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Collecting rent through Pay Pal?
Don't use Paypal. Too many ways to get scammed. Plus you have to pay a 2.9% fee.
Just have them do a recurring wire transfer through their bank. The wires will cost them money, but maybe if you want to be nice you can subtract the rent by the wire fee they would pay.
Or open up a bank account with the same bank that the tenant has. Then do inter-bank transfers between account numbers.
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| Posted 8/12/10 2:16 PM |
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LuvHelloKitty
LIF Infant
Member since 1/10 112 total posts
Name:
Liz
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Re: Collecting rent through Pay Pal?
I set up a Business Checking Account through my bank (Citibank) and was able to collect rent electronically from my tenants.
All they needed was the account number. They fill out a deposit slip at the Teller Window with my account number, deposit their rental payment by check, and I get an Email Notification of the transaction so I confirm Rent was paid.
Its a lot better than PayPal which charges a fee and a few other services I've seen advertised over at LPA (Landlord Protection Agency).
My tenants love it because they just need to walk into ANY Citibank branch to pay the rent, and not have to deal with stamps or envelopes.
There are no fees other thana 20 cents "per transaction" and "per check" fee. Overall its working out well. I def recommend opening a separate bank account and just telling your tenants the numbers so they can do the same.
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| Posted 8/12/10 3:22 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Collecting rent through Pay Pal?
Citibank is not that prevelant in AZ..that's where the property is.
How much are wire transfers?
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| Posted 8/12/10 3:33 PM |
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LuvHelloKitty
LIF Infant
Member since 1/10 112 total posts
Name:
Liz
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Re: Collecting rent through Pay Pal?
yeah unfortunately I get KILLED with wire transfer fees (Citibank charges $20 a pop for them) so I don't bother with that option. I told my tenants to write a check from THEIR own personal account and then deposit it into my business account. This way I avoid the wire transfer fees.
The inter-bank transfer would work well if my tenants had Citibank but they don't. They use Bank of America and in order for me to open a business account with BoA, I'd have to get a TIN or have a crazy high minimum balance in the account at all times. I didn't want to deal with that so I told my tenants that Wire Transfers were not possible.
I wish electronic rent payments were easier to set up!! My last tenants paid me by regular mail, and while they were punctual with payments, I was sweating each month waiting by our mailbox for those checks. Now I just wait for an email...So less stressful!!
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| Posted 8/12/10 5:25 PM |
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Re: Collecting rent through Pay Pal?
Use ING Banking. You can send money to any checking account number without any fees.
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| Posted 8/12/10 7:27 PM |
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NoStressMom
My Heart and Soul
Member since 5/05 11122 total posts
Name:
D
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Re: Collecting rent through Pay Pal?
we have it direct deposit into our account
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| Posted 8/13/10 8:50 AM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Collecting rent through Pay Pal?
Posted by LuvHelloKitty
I set up a Business Checking Account through my bank (Citibank) and was able to collect rent electronically from my tenants.
All they needed was the account number. They fill out a deposit slip at the Teller Window with my account number, deposit their rental payment by check, and I get an Email Notification of the transaction so I confirm Rent was paid.
Its a lot better than PayPal which charges a fee and a few other services I've seen advertised over at LPA (Landlord Protection Agency).
My tenants love it because they just need to walk into ANY Citibank branch to pay the rent, and not have to deal with stamps or envelopes.
There are no fees other thana 20 cents "per transaction" and "per check" fee. Overall its working out well. I def recommend opening a separate bank account and just telling your tenants the numbers so they can do the same.
This is how my SIL pays her rent. I am pretty sure B of A has branches in AZ and NY or try Wachovia
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| Posted 8/13/10 9:16 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Collecting rent through Pay Pal?
Posted by DRMom
Posted by LuvHelloKitty
I set up a Business Checking Account through my bank (Citibank) and was able to collect rent electronically from my tenants.
All they needed was the account number. They fill out a deposit slip at the Teller Window with my account number, deposit their rental payment by check, and I get an Email Notification of the transaction so I confirm Rent was paid.
Its a lot better than PayPal which charges a fee and a few other services I've seen advertised over at LPA (Landlord Protection Agency).
My tenants love it because they just need to walk into ANY Citibank branch to pay the rent, and not have to deal with stamps or envelopes.
There are no fees other thana 20 cents "per transaction" and "per check" fee. Overall its working out well. I def recommend opening a separate bank account and just telling your tenants the numbers so they can do the same.
This is how my SIL pays her rent. I am pretty sure B of A has branches in AZ and NY or try Wachovia
I was thinking about this last night. She has BOA and my dad already has an account. I can just have her deposit it there and my dad could transfer. It's a bit convoluted but I could talk to him about it.
It would get me paid quickly, it would be available immediately and easier than all of the other options. I could just ask my dad to add me to the account or open another with both and link it since I would want to avoid fees.
Anyone know the minimums for opening a BoA account?
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| Posted 8/13/10 9:57 AM |
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LuvHelloKitty
LIF Infant
Member since 1/10 112 total posts
Name:
Liz
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Re: Collecting rent through Pay Pal?
When I was looking to open a business checking account, I went to Bank of America and they advised me the minimum bakance required to open was $ 5,000. There is also monthly fees of $8.95 unless you qualify for inclusion in some type of fee waiver category.
I don't like the idea of keeping a min balance in the account so I didn't go w/ BoA.
http://www.bankofamerica.com/deposits/checksave/index.cfm?template=check_sbbundle
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| Posted 8/13/10 10:34 AM |
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