Best way to collect rent


#1

What’s the best way to collect rent for a small park of about 30 pads? I don’t want to pick up checks and deposit them to the bank. Rent manger seems cost prohibitive.


#2

Train them to deposit the rent at a bank closest to the park. Easy to do. I don’t even let my managers touch the rent. Or you train them to mail you the rent check or money order.


#3

When you have, as an example, 50 different tenants each paying $285 per month. How do you tell which tenant’s deposit is which?
Thank you


#4

I collect post dated checks for the year. It is however a bit of a nuisance if some only supply a portion of the year. This will have you chasing them for more checks when the time comes.
What you need to do is decide how you want to do it and include it in your lease. This will force all tenants to pay in the same way. What you do not want is to agree to allow tenants multiple options for paying. Force them to get on board to simplify your business.
Some will make excuses as to why they can not or do not wish to pay a certain way but making it a condition of tenancy forces them onboard. Those that do not have bank accounts will need to pay with a money order. Make the solution their problem not yours. You can not cater to individual tenant issues.


#5

What I’m asking is if they deposit into my bank account, how do you tell who’s who if they all pay the same amount?
Thanks


#6

I have heard people say they make the lot rent x.52 so the .52 in change means that is lot 52?? OR have them use deposit slips you give them with their lot number on it… Not sure if either method works. I just decided Rent Manager with PayLease and CashPay options made my life much easier and was worth the investment, especially if you plan to own multiple parks which I hopefully will soon.


#7

@DAM_MHP , as per your post:

  • “What’s the best way to collect rent for a small park of about 30 pads?”

We mail Monthly Bills to our 2 Mobile Home Parks.

We then have the Tenants mail the Payments (Checks / Money Orders / Bill Pays) to a PO Box. We pick up the Payments and then deposit them at the Bank.

However, you stated:

  • “I don’t want to pick up checks and deposit them to the bank.”

That is understandable.

As previously stated you can have the Tenants deposit their Payments at your Bank and have them put their Lot # in the cents portion of their Payments (ie…Lot #2 = $xxx.02).

Previously, we had one Tenant who deposited their Payments at our Bank. It was nice.

However, the Bank changed their Rules concerning Cash Payments being deposited into “other” people’s Bank Accounts.

Find out what works best for you and your Tenants.

Once you determine your “Best Collection Strategy” it is just a matter of training the Tenants and following your Rules.

Make sure that you also identify:

  • Date = For Payment
  • Date = For Late Fees - (# Of Late Fees & Late Fee Amounts & Late Fee Dates)
  • Date = Eviction Process Begins

We wish you the very best!


#8

Thank you! That sounds like a great way to do it.


#9

Check out https://cozy.co/
It’s free for everyone if they have a bank account. Or a small fee if they want to use a credit card.


#10

Thanks @bhennen123! I have heard of a service called Zelle, which is supposed to be backed by banks. I feel safer when the banks are directly connected, but not all banks use the service. I think at least one person in the transaction needs to have a bank listed in Zelle. I have received money through it once from a person in Florida, but my bank was not listed, but there’s was.

It’s always good to find easier ways to do the menial things in life.


#11

I just have them make the deposit at my bank. I have them add the appropriate # of pennies so that I can identity who is paying. Lot one would pay $300.01. Lot 30 would pay $300.30…


#12

BTW: I do not work for Zelle or anything. I just used it once so far.


#13

Thank you Holly, this sounds like the best way to me.
Len


#14

We ordered deposit slips online from Walmart which cost a few hundred dollars, but it worked very well. Each pad had the tenants address so when We pulled up online banking We could see each deposit with the tenants address.


#15

Here’s a method I saw someone else on this forum do, add a small number of cents to the rent due that corresponds to the space number. IE space 1 would be $285.01 and space 14 would be $285.14. This works decently until you get over 99 units in the same park.

Now the question of whether the tenants would be bothered to actually deposit that change is a different story. I’ve seen some people also request/put on the deposit slip the space number (works if you have check images from the bank) but sometimes you have a teller who uses the bank slip and doesn’t realize to put the space number on the slip.

I should also add, ensure this is a business account vs personal account as several banks as mentioned above have changed their rules on cash acceptance for not authorized persons on the account. Business accounts do not usually have this specific restriction yet.


#16

Hi @Kristin.

I am going to test this method of rent collection with my new park Im acquiring within a couple weeks here.

My question is this: At which point if you do not see the rent in your mail do you send a late fee notice? Sometimes mail takes a few days. Do you make calls or just do everything via mail? Are your late notices via certified mail?

As always appreciate your input on here.

Charlie


#17

@Charlie.Ansa , as per your post:

  • “I am going to test this method of rent collection with my new park…”
  • “At which point if you do not see the rent in your mail do you send a late fee notice?”
  • “Do you make calls or just do everything via mail?”
  • “Are your late notices via certified mail?”

Charlie, first of all Congratulations on your new park you are acquiring! How exciting!

Please note that I am not an Attorney and the Eviction Laws differ per state.

We are in South Carolina.

Our “Customer Payment Responsibilities” are:

  • Due: 1st Or Before
  • Late Fees - #1*: 2nd - 5th
  • Late Fees - #2*: 6th And After
  • Eviction Process*: Starts On The 6th

*Late Fees & Eviction Process is based on the Envelope Postmark Date.

All Payments should be mailed at:

  • United States Post Office

IF Tenant is mailing their Payment on the 1st or After, Tenant must go inside USPS and have Employee Hand-Stamp Postmark Date.

The Payment Envelope must be Postmarked the 5th or Earlier to avoid the Eviction Process.

On the 5th those with NO Payment received are texted to give them a head’s up (as a Courtesy). Most have already mailed Payment (just not arrived). For those who have not mailed Payment this is just a “Friendly Reminder”.

For our area the Turn-around time is 2 Days for mail to reach our PO Box.

Thus, the PO Box is checked on the 7th. IF NO Payment by the 7th, the Eviction Process starts.

Our Leases are:

  • Month-To-Month Leases

Our Leases (& Monthly Bills - as a Courtesy Reminder) contain the statement:

  • “IF YOU DO NOT PAY YOUR RENT ON TIME. THIS IS YOUR NOTICE. IF YOU DO NOT PAY YOUR RENT WITHIN FIVE DAYS OF THE DUE DATE, THE LANDLORD CAN START TO HAVE YOU EVICTED. YOU WILL GET NO OTHER NOTICE AS LONG AS YOU LIVE IN THIS RENTAL UNIT.”

Thus, on the 7th we go to the Magistrate and file Eviction Papers.

As per your questions:

  • “At which point if you do not see the rent in your mail do you send a late fee notice?”
    On the 5th (as a Courtesy Reminder) will text Tenant that Payment has not been received
  • “Do you make calls or just do everything via mail?”
    No calls - Text on the 5th
  • “Are your late notices via certified mail?”
    No Late Notices Mailed - Not Required By Mail IF Statement (Provision) is in Month-To-Month Lease
    Statement (Provision) in Month-To-Month Lease is Tenant’s Notification
    As per South Carolina Code of Laws:
    “If the rental agreement contains the provision set forth in this subsection, the landlord is not required to furnish any separate or additional written notice to the tenant in order to commence eviction proceedings for nonpayment of rent even after the original term of the rental agreement has expired.”

We wish you the very best!

As per South Carolina Code of Laws:
https://www.scstatehouse.gov/code/t27c040.php

South Carolina Code of Laws
Unannotated

Title 27 - Property and Conveyances

CHAPTER 40

Residential Landlord and Tenant Act

ARTICLE 1

General Provisions and Definitions

SECTION 27-40-710. Noncompliance with rental agreement; failure to pay rent; removal of evicted tenant’s personal property.

(B) If rent is unpaid when due and the tenant fails to pay rent within five days from the date due or the tenant is in violation of Section 27-40-540, the landlord may terminate the rental agreement provided the landlord has given the tenant written notice of nonpayment and his intention to terminate the rental agreement if the rent is not paid within that period. The landlord’s obligation to provide notice under this section is satisfied for any lease term after the landlord has given one such notice to the tenant or if the notice is contained in conspicuous language in a written rental agreement. The written notice requirement upon the landlord under this subsection shall be considered to have been complied with if the rental agreement contains the following or a substantially equivalent provision:

"IF YOU DO NOT PAY YOUR RENT ON TIME

This is your notice. If you do not pay your rent within five days of the due date, the landlord can start to have you evicted. You will get no other notice as long as you live in this rental unit."

The presence of this provision in the rental agreement fully satisfies the “written notice” requirement under this subsection and applies to a month-to-month tenancy following the specified lease term in the original rental agreement. If the rental agreement contains the provision set forth in this subsection, the landlord is not required to furnish any separate or additional written notice to the tenant in order to commence eviction proceedings for nonpayment of rent even after the original term of the rental agreement has expired.


#18

@Kristin thank you for that very well thought out response. At my first we have the manager collect and deposit (checks or money orders only of course). But as I look to expand I want a uniformed method of collecting rent and I think mail might be the best solution. The less I have the on site manager do, the better in my opinion.


#19

We have just purchased our first 23 unit park. I don’t think asking the tenants to deposit their check into my bank is reasonable. Mostly because our park’s location isn’t convenient to a branch of our bank. But it also seems a little too much of an ask to me (but really awesome if you can get it done). My plan is to provide our tenants with a folder that includes a copy of their rental agreement, other pertinent information to our park and 12 self addressed envelopes to our PO Box. The tenants have to supply the stamp and send the rent on its way.


#20

Hi, I’m with Schedule My Rent. A tenant can pay with their bank account or with cash at any MoneyGram location. MoneyGram is in Walmart and thousands of other locations. The money is automatically transferred to your bank account and you have a dashboard to easily see who has paid and who hasn’t paid. www.schedulemyrent.com