Landords: Anyone collecting rent via automatic debit?

Leveraging, renting vs owning, making an investment or buying a home?
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HoTiCE
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Landords: Anyone collecting rent via automatic debit?

Post by HoTiCE » 10 Mar 2017 20:38

Are there any landlords here that collect rent via automatic debit? I'm not talking about you receiving an automatic Interact etransfer but actually having the money withdrawn from the tenants account and deposited into yours (with his or her authorization of course)

How does it work? Do they have to bank at the same bank as yours? I looked online on a few major banks but couldn't find anything and Google is not really of any help either.

Thanks

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kcowan
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Re: Landords: Anyone collecting rent via automatic debit?

Post by kcowan » 11 Mar 2017 12:04

Maple Leaf Property Management does this in Vancouver. It requires a form once and then changes are automatic. No restrictions on bank. They also accept debit cards at a terminal in their office for smaller amounts.
For the fun of it...Keith

twa2w
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Re: Landords: Anyone collecting rent via automatic debit?

Post by twa2w » 11 Mar 2017 22:58

No, they don't have to deal at same bank.

Depending on the bank you deal with, you would speak to a small busiess banker or a specislized sales person.

This wasn't my field nor did I have an interest in it but there is a process and a cost to doing this and the exact procedure will of course depend on the bank you deal with.

Essentially you have to complete a credit application and may have to post security.

You have the tenant complete a request for auto debit on a form your bank provides. You provide the bank with a monthly list of accounts / names and amounts( electronic procedure usualky) and the bank processes them.
The security and credit application is to protect the bank if you process a debit you shouldn't have or there is one in dispute, the bank has to make sure you are good for it.

That is a pretty crude description. Likely not worth it unless you have a fair number of rentals although the cost is likely decreased from when I was at the bank.

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