A Landlord's Best Friend: ClearNow Direct Rent Deposits

Life would be great if - each and every month - tenant rents were automatically transferred to your checking account. Just think:

  • You would eliminate time spent collecting and depositing checks.
  • Your tenants would not be burdened with remembering to pay rent on time, writing checks, and delivering them to you.
  • Checks would not pile up in your mailbox because you are out of town.
  • Checks would not be "lost in the mail."
  • You would eliminate calls or visits to tenants to learn why their rent is late.
  • You will know about insufficient funds within days rather than weeks or months.

Fortunately, these benefits can become a reality with 'direct rent deposits'!

Direct Rent Deposits
Direct rent deposits are automatic, electronic rent payments. Each month, rents are automatically withdrawn from tenant bank accounts and directly deposited to the property's checking account through the Automated Clearing House (ACH) payment network. The ACH network is the most widely used, bank-based electronic funds transfer network in the United States. It is the payment network that is used to transmit payroll for millions of employees through direct deposit. The ACH network is safe, reliable, and inexpensive. Federal Regulation E (the Electronic Funds Transfer Act of 1978) safeguards consumers against the inappropriate movement of funds from their account.

There is no guarantee tenants will have sufficient funds to cover their rent. However with direct rent deposits, you will know of insufficient funds quickly - far sooner than with paper checks.

Getting Started

While it is possible to administer direct rent deposits yourself, you will need to understand how to process files with an ACH processor. You may need to invest significant time and money in order to accomplish this. Fortunately, there are inexpensive rent payment services that eliminate the administrative complexity of direct rent deposits.

Article Provided By:

Justin Yung
ClearNow, Inc.
ClearNow, Inc. of Durham, North Carolina is a pioneer in easy-to-administer Web-based ACH solutions for the multifamily housing market. For more information, contact ClearNow, Inc. at 919-680-4500 or visit their Website at www.ClearNow.com.

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