Converting tenants to ACH payment

Have recently sent out letter to tenants announcing that future rent payments will be made via ACH through our local bank. The predicted backlash has begun. “It’s not legal”, “I don’t trust banks”, etc. Your suggestions are appreciated. Thanks

My tenant base has several folks like that. For whatever reason, they are ‘unbanked’. I started at requiring money orders for now (no more cash!) and intend to gradually move to ACH.

I have had payment made by debit card be withdrawn two days later. Fun! Tenant says ‘I have a receipt!’


Change always results in some degree of push back regardless of issue. The resistance is about change not about what the particular change is. If you are determined to go forward you must insist on compliance. Compromise may be a option as Wanderer suggests but 9 times in 10 giving options only complicates your life.
For myself in regards to business decisions I never try to please everyone, that is impossible. Tenants generally come around to your thinking when given no other options.

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I have a small park that was totally collected by the former owner. They now either take it by the bank, pay with cash app or mail it to me. So change can be done. Are you wanting ACH to have (at least in theory) all of your deposits in by a certain date? Or is this more about getting away from cash payments. Maybe you offer them another electronic means like the cash app (there are others) or if you have a local bank have them deposit the funds there.

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Hi. More tenants will convert if you give them more options. If you get more tenants paying through automated processes, it really starts saving you time by automatically sending reminders and receipts, recording payments, adding late fees, etc. offers tenants the ability to pay with their bank (ACH), credit/debit card, and with cash at any MoneyGram location. MoneyGram is located at Walmart and thousands of other locations. If a tenant doesn’t want to give out their bank account (or doesn’t have one), having them pay with cash at MoneyGram makes it really easy. Accepting money orders can be really painful…if they get lost, it often takes over a month to get the money back.

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Yes we are required in our state to give them options on paying rent.
We let them do ACH or for the nay sayers let them deposit directly into our bank account. It shows up immediately and the deposit slip is their receipt.

Hope this helps!


Thank you for the helpful replies. Down to just 3-4 “absolutely will nots”. At some point, will give them the deposit slip option. Overall, not as difficult as we expected. Having done this and a couple of years ago, putting in individual water meters, (billing them for water) we’re getting our 72 unit park up to date. Next project will be to switch our fairly new water meters over to electronically read meters, once the price goes down! Welcome suggestions. Thanks. Jim

Yes. Depending on your property some tenants simply are unable to qualify for bank accounts. Think about the last time you opened a bank account and the hoops you had to jump through!

Thanks for mentioning this service, Kris, which sounds like a great solution for both the tenants and for Richink!