Life would be great if - each and every month - tenant rents were automatically
transferred to your checking account. Just think:
Fortunately, these benefits can become a reality with 'direct rent
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rents are automatically withdrawn from tenant bank accounts and directly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.
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:
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
# # #