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Giving Tenant Access to Deposit Directly to My Account

How can I set up an account for my tenant to be able to pay me my monthly rent without me being alarmed that he or she is able to withdraw or find out personal information about the funds in my account?


We presume you want your tenant to be able to send rent directly to your account rather than send you a check. Unless your tenant gives you an authorization to directly debit his account each month (which would give you information on your tenant's account), you would have to provide your tenant with information on your bank account, so that he could make a deposit each month. You could provide a supply of deposit tickets for him to use or you could give him an OK to directly credit your account using an electronic transfer from his account. Either option requires that you divulge your bank and account number.

Willingness to give up that information presupposes that you trust your tenant not to abuse the privilege of having it and that you trust your bank not to give out account information based solely on someone's knowing your account number. Your bank has a legal and professional obligation not to divulge your confidential information. Your tenant would be breaking the law if he abused your trust.

If the law doesn't give you comfort that your bank account information is secure, you might consider whether an intermediary service, such as PayPal, would provide you the security you want. You and your tenant could each set up PayPal accounts and all you would have to provide your tenant is your email address or mobile telephone number. Your tenant could make payments from his PayPal account and notify you by email or text message. You'd log into PayPal to claim the funds using transfer information in your tenant's message. You could then transfer funds from your PayPal account to your bank account, which would remain hidden from your tenant, or you may decide that all the machinations aren't worth the effort, and simply ask your tenant to send you a check or money order each month.

Published on BankingQuestions.com 11/03/10