Originally Posted by bizlady
I overlooked the obvious! Had thought about giving them deposit slips, but never thought about the check getting mailed straight to the bank rather than to us. Using FBO is also a good idea. Perfect solutions- thanks folks!
As Ed points out, you have a couple other choices that can make this even
easier for your payer. Our credit union puts a deposit hold on paper checks over a certain amount, but they happily (and immediately) credit electronic deposits. Depending on the mail and your bank, an electronic funds transfer (EFT) might be less hassle.
With your bank account number and your bank's routing transit number (RTN), your payer can have their bank automatically and electronically transfer the money to your account on the monthly due date. They only have to set it up once and then they just have to make sure that their account has sufficient funds at the due date to support the transfer. This is how we make our mortgage payment from my checking account to the mortgage bank.
Our tenants pay us via an automatic monthly electronic funds transfer which they set up through Online Banking | Online Resources
. ORCC first mailed us a paper check with instructions on how to set up the EFT (again we gave them our account number and our credit union's RTN) and now the rent shows up in my checking account on the 1st of the month. I don't know if they pay ORCC for the privilege or if it's a "free" benefit of their brokerage account.
So our tenant's rent payment is automatically deposited in my checking account on the first of the month. On the fifth of the month, our home mortgage payment is sucked out of my checking account and sent to our mortgage bank. On the 10th, our rental's mortgage payment is sucked out of my checking account by our credit union. As long as the tenant's EFT doesn't "bounce", I can just sit there and watch the money fly around without doing a thing...