As a Realtor who handles dozens of rental transactions, the number one question I get from new as well as experienced landlords has to do with collecting the rent. Most are happy to have the tenant mail a check while others provide a supply of deposit tickets to their tenants, enabling them to deposit funds directly into the 
landlord's bank account. Some tenants have even elected to pay the rent using online banking or a wire transfer. Landlords are understandably excited when a tenant pays electronically, as they get paid on time and have immediate use of the funds.
Recently I was asked to draw up a lease where the landlord required the tenant to pay electronically. I submitted the request to our lease attorney who provided the following reason why we should not have such a clause in the lease:
"In the event of an eviction if the tenant has access to owners or property managers bank account and the tenant deposits money after the eviction has been filed it would stop the eviction and cost the owner or property manager more money. Also, that bank account would become part of the exhibits during an eviction action."
A real estate attorney can explain all the ramifications of accepting direct deposits into your account but the "long and short" of it is that if the tenant deposits money into your account after you initiate an eviction, it can cause you to have to start the process all over or worse.
Under the best of circumstances being a landlord (especially an accidental or out of town landlord) can be a challenge. Working with a qualified rental agent will help you minimize the pitfalls of being a landlord and procure the best tenant, in the shortest possible time and with the least amount of stress.
Comments (2)Subscribe to CommentsComment