Could you pay rent via the use of cashier checks and collect it that way from tenants?
Apparently there are fees with cashier checks what are they and how long do they take to clear and to request them from bank etc?
[{"id": "fxnhdkt", "text": "Immediate and I think they clear pretty quickly.\n\nBut in this day and age, ACH transfers are faster via online bill pay.", "replies": [{"id": "fxnhq6q", "text": "Ok thanks and yes I know that too.\n\nI\u2019m wondering if some tenants may prefer cheques then a cashier check may be the way to go. What are the fees for cashier checks. Is it a flat fee and do I walk into a bank then leave with a cashiers check 5 minutes later?\n\nI\u2019m thinking of an online portal such as AppFolio so tenants can pay via a debit/credit card and a checking account. How would I also set up ACH transfers if I choose?", "replies": [{"id": "fxnlmiz", "text": "ACH transfers. The tenants would have to do that.\n\nAnd as far as tenant preferences, have you asked them?", "replies": [{"id": "fxnlqto", "text": "Well I don\u2019t own property yet I plan to in the future I\u2019m just asking questions and building up my knowledge.", "replies": [{"id": "fxnlvnd", "text": "Cashiers checks are usually for purchases. Not for everyday transactions", "replies": [{"id": "fxnm34w", "text": "Is there restrictions on cashier checks. Could you use it whenever you want for whatever you want just to make sure payments go to height.\n\nFor example, let\u2019s say I have an office building and a commercial tenant paying me $20k a month in rent I may want a cashiers check from them to make sure payments go through.", "replies": [{"id": "fxnmeyf", "text": "Don\u2019t make payments to you a pain in the ass. You have to go into a bank. Person to person. Show proof of identity and ownership of the account etc in order to get one.", "replies": [{"id": "fxnmorl", "text": "I\u2019m not trying to I\u2019m just looking at different payment methods and which might be more convenient etc. I\u2019ll rather receive a $20k cashiers check each month for rent than $20k in cash. \n\nFirst of all, if a tenant is paying me that much rent a month in cash it\u2019s dodgy and they could be selling drugs for all I know. \n\nSecond of all, counting the money would be a hassle and it could easily get lost and depositing that much etc would be a hassle and cash is harder for accounting.", "replies": [{"id": "fxnmssz", "text": "Direct debit or ACH transfers Banks have to investigate all these transactions anyway.", "replies": [{"id": "fxnmw81", "text": "I know that\u2019s why I prefer wire transfer and checks or online portals. They have a trace and the tenant is less likely to do things shady maybe. Tons of cash suggest they may be doing something dodgy. I know some tenants may like cash but a commercial tenant paying tens of thousands of dollars a month in rent in cold hard cash must be doing something shady.", "replies": [], "depth": 10}], "depth": 9}, {"id": "fxo8adh", "text": "This makes it sound like you\u2019re the tenant selling drugs and paying cash and looking for a different option", "replies": [{"id": "fxo8qn4", "text": "I\u2019ve noticed on Reddit people like to assume the worst when I ask stuff. I don\u2019t sell drugs, never have and never will and wouldn\u2019t even know how to get a supply or who to work with even if I wanted to. \n\nI only turned 18 in Late May and don\u2019t even have a job yet. \n\nI\u2019m learning real estate as it\u2019s something I want to invest into in the future that\u2019s why I\u2019m asking questions to build up my knowledge.", "replies": [{"id": "fxo9fjh", "text": "Lol it was just a joke man, not assuming anything. But since were here, isn\u2019t in an assumption that because someone pays in cash they are doing something dodgy? Also, who says they don\u2019t sell drugs because they wouldn\u2019t even know how to get a supply?", "replies": [{"id": "fxo9o5r", "text": "I\u2019m not saying that all people that pay in cash are doing something dodgy. My issue that cash makes accounting more difficult and it\u2019s inconvenient while also being the least safe.\n\nWith the drugs supply thing I said that as I don\u2019t deal drugs and never will.", "replies": [], "depth": 12}], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}, {"id": "fxnmyuw", "text": "Also when I do show proof of identity and ownership of account etc how long will it take to receive a cashiers check?", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "fxnw6bq", "text": "stripe", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fxnhg1j", "text": "I'll sometimes want that, cash or money order the first time if tenants are paying me and moving in immediately. Just because I'll lose money if they bounce the first payment.\n\nCashier's checks are as good as cash if they aren't fraudulent.  They've already been deducted from the person's account. But they do cost $10-20.", "replies": [{"id": "fxnhzaf", "text": "Ok so with cashier checks the tenant may pay $10-20 per cashier check regardless of the amount?\n\nI\u2019ve heard that if tenants have cash you could get them to go to a shop and get a money order. How does that work? Do they give cash to the store and the money order deposits that cash into your bank?", "replies": [{"id": "fxns7eb", "text": "This all depends on who is selling the cashiers check or money order.  Also gas station money orders max out at 500 or so I think?  Then you have to get multiple ones.  You also have to fill out a bunch of shit for financial reporting at a certain level.  Ive had a ton of res tenants pay like this.  Commercial tenants are a different ball game, their lawyers will strike this from the lease and accounting people are busy enough without having to have a signer physically go to the bank and have a check cut.  \n\nFor a deposit or first month of rent you may be able to do this.  \n\nJust use ach like everyone else said.  If you anticipate tenants giving you bad checks youd do a lot better to find better tenants than to make them use certified.  At the end of the day its not going to make their rent appear, they have it or not", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fxnucrq", "text": "Cashier check is consider as cash, and it is safer then check because the money is already there, a regular check might bounce", "replies": [{"id": "fxnviyd", "text": "I know with cashier checks the person pays money to the bank then the bank pays their own money to the recipient thus it always go through as the bank can\u2019t bounce. That\u2019s the reason I want to use cashier checks. I also know a regular check may bounce which is why I\u2019m trying to look at alternatives.", "replies": [{"id": "fxnwi28", "text": "What are you working on?  I'm building a servicing solution for lenders; might be some synergy here.  PM me your email.", "replies": [{"id": "fxnxiri", "text": "Done check your PM \ud83d\udc4d", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fxny6j1", "text": "Freebie-Zelle, Paypal, Apple Pay, Google pay. Electronic payments are quicker to clear.  I have not see tenants pay with checks for many years.", "replies": [], "depth": 1}, {"id": "fxobaz5", "text": "If you work in affordable housing, money order and cashier's check are the go to for rent payment. Why? Bc most of the working poor in America are unbanked. From the landlord perspective a money order or a cashier check are simply a guaranteed form of payment since the person has purchased it from say Western Union in cash and western union is guaranteeing the amount.\n\nThat said, some drawbacks include the fact your tenant will need to pay a fee to purchase the money order and they usually cap them at 500 or 1000. Unless you plan to use them for some nefarious reason, money orders are great. Someone already mentioned but I would only accept them for deposits bc they can't be cancelled like a regular check (not as easily at least).", "replies": [{"id": "fxoc0ec", "text": "Isn\u2019t a debit card free to open and apply for? \n\nHow do people get employed without a bank account I thought that was a requirement and I believe businesses are not allowed to pay employees in cash known as \u2018under the table\u2019 I believe.\n\nIf a tenant doesn\u2019t have a bank account wouldn\u2019t they be a risky tenant as it may suggest their income is not legitimate and they are not paying taxes.", "replies": [{"id": "fxodshg", "text": "Good questions. There are many reasons. [Here are a few explanations](https://business.time.com/2012/11/20/why-so-many-americans-dont-have-bank-accounts/) \n\nYou can certainly be paid cash by a company, they will cut you a 1099 and you will file taxes as an independent contractor on the money you earned - or however you set it up. I did that last year.\n\nWith regards to risk I would direct you back again to the link bc not having a bank account does not necessarily suggest a person does not have steady income or not paying taxes. Most of my residents worked multiple jobs just to stay afloat.", "replies": [{"id": "fxopi97", "text": "Ok then why won\u2019t the tenant have a bank account? I believe it\u2019s free to set up. Also carrying so much cash and having no bank to put it in is also risky.\n\nPaying cash to employees would also have complications. Couldn\u2019t shady people use that to cover their tracks etc.", "replies": [{"id": "fxoqb02", "text": "You're gonna have to do your own research on why historically the financial system doesn't serve poor folks and POC. That's the entire article I linked to. As well there are plenty others.\n\nCarrying cash is a risk, but some people do it because they don't trust banks.", "replies": [{"id": "fxorp05", "text": "Yes some people don\u2019t trust banks but they are a necessary evil in the same way the governments are as all governments do some shady bs but they provide facilities in the country etc.\n\nWhether or not people like banks they need to store their money somewhere, how are they going to order goods online I mean sure there are prepaid debit cards but not everywhere might accept them. \n\nWouldn\u2019t taxes be complicated as well. How do you pay taxes with no bank account? It could also affect their income and employability. How many companies would hire someone with no bank account especially big business who use payroll services and automate stuff they\u2019ll probably require you to open one whether you trust banks or not.\n\nMany people hate paying taxes or think they are too high but end up paying them because they have to.", "replies": [{"id": "fxotsea", "text": "I'm not really sure what problem it is you're looking to solve with this thread. Why exactly do you have so much distrust for any other system other than a banking system? Banks aren't a necessary evil. Millions of people don't use them. \n\nYou report taxes separately from a bank account and most tax reporting is voluntary (meaning you could technically not report self made income but the IRS might find out) unless you're audited. Most poor folks also don't owe anything in taxes bc they aren't making enough to where they owe the govt anything come tax season. Usually, they will receive a credit.\n\nAn employer can not do direct deposit and pay with a check. That person can then go cash the check without a bank account. Have you only ever worked in a white collar job? I don't ask to be mean, but idk how you can't conceive of a world in which a person doesn't use a bank.", "replies": [{"id": "fxouko5", "text": "I don\u2019t distrust other systems other than the banking system it\u2019s just that in my opinion cash gets complicated. If I\u2019m receiving lots of rent dollars I don\u2019t want to be flooded with cash I want it safe in the bank.\n\nYes I know banks aren\u2019t a necessary evil it\u2019s a point I was trying to make that even if people don\u2019t trust banks there kinda necessary in life whether it\u2019s borrowing money, purchasing things or saving money.\n\nHow do you cash a check without a bank account I\u2019ve never heard of that. Also I\u2019m 18 and have never had a job I plan to get one in September when I start university maybe that\u2019s why I may be unfamiliar with some of the things that you refer to.", "replies": [{"id": "fxp7zh2", "text": "Got it! I think we were saying the same sorts of things but coming at it from very different perspectives. If you've never had a job, yes those things would not necessarily make sense.\n\nAnd you are correct, cash can be a pain. Every method that's been listed should help keep you more secure: direct transfer of funds, money order, paypal. Ultimately, you want a paper trail/receipts. Using a physical money order also presents the other issue of someone actually having to get the damn thing to you. Which means you need a po box, mail slot, or an office; unless your gonna have people mail them to your house or go around and manually collect rent.", "replies": [{"id": "fxpt4eh", "text": "Ok and yes I want a paper trail. I know cash I\u2019m not bad but having too much physical cash in my opinion would be annoying and inconvenient. Yes I could set up a PO Box for rent but wouldn\u2019t tenants thinking about breaking it open etc perhaps because they know all the cheques go there. I know I\u2019m thinking of the worst case scenarios but that\u2019s a good thing as it keeps you realistic and gets you prepared. Electronic just has so many pros. \n\nYou know exactly who sent you your money. With cash you can forget who\u2019s cash is who.\n\nIt\u2019s automated and you can be out for state or on holidays and still get paid. Cash you need to be there, count it and for all I know the cash could be fake.\n\nElectronically accounting is way easier as there is a paper trial and tools help with that but cash is a pain.\n\nIf there is a LEGAL WAY to ban tenants from paying in cash and get them to pay in alternative ways such as money orders and checks etc then I would want to do that.", "replies": [{"id": "fxpuywh", "text": "Yes I wouldn't take an envelope of cash. I don't think most people do either. Also, tenants may be wary about it bc you could just pocket the cash and say you never got it. \n\nYou usually get a PO box in a post office (post office box) so breaking in would be a federal crime(s). Or at a UPS store; but similarly hard to break into.\n\nYou can certainly stipulate a form of payment in a lease agreement. Then you'll both sign a binding agreement saying they agree to pay you via Venmo, for example. Depending on the size of the portfolio it may be worth investing in a property management software that tenants pay rent through and automatically generates what is called a rental ledger (the record of payment over the course of the lease). Yardi, property ware, etc.", "replies": [{"id": "fxpwd0d", "text": "Thanks for reminding yeah cash can lead to scams etc. \n\nA landlord could collect the cash for rent from a tenant and lie saying the tenant didn\u2019t pay rent etc. \n\nObviously in an investigation they may check cash withdrawals from the tenants bank but if the tenant has no bank account it raises worries as it\u2019ll be harder to track and if they have no bank account that suggest they are getting paid in cash. \n\nGetting paid in cash only is very suspicious and suggests your doing shady business. \n\nAlso, the tenant could perhaps try and be sneaky by withdrawing the rent amount from their bank account if they have one and keep that money and lie that they paid rent to the landlord and when an investigation is done the investigators will see that they withdrawn an amount equal to the rent.\n\nI don\u2019t hate cash my point is things with no paper trail are too risky AKA cash.", "replies": [{"id": "fxpy6z2", "text": "There's nothing inherently suspicious about it. There are still small stores (food trucks I've been to, pop ups, etc) where the vendor doesn't want to pay the credit card processing fee so they only take cash. It gets a little different when the transaction becomes one in which one party (the landlord) has power over someone else (the tenant). I think this scenario could very quickly be abused.\n\nLike you said though, you're definitely imagining some very worst case scenarios. As long as you have a solid lease, have done a little background check on the tenant (credit check, landlord reference, steady income: get paystubs if you're truly worried) you should be ok. If you are honest and treat your tenants with respect they usually do the same to you. Are some tenants bad ppl? Sure. But the same goes for any part of life.", "replies": [{"id": "fxpzrl1", "text": "I know it seems like I am overreacting but I\u2019ll prefer to play it safe. Better safe than sorry as it keeps you out of trouble.", "replies": [], "depth": 14}], "depth": 13}], "depth": 12}], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]