Paying my rent
December 1, 2022 2:16 PM Subscribe
My landlord wants me to electronically transfer money to his account each month for rent, and he has given me his bank name, company name, account number, and routing number (ABA number). How do I do this without paying a wire transfer fee?
My landlord wants me to pay his rental company through an electronic transfer. Previously, I was using Zelle to pay rent for 4 years - but I only have his personal email and phone, so this goes to his personal bank account. He wants the rent deposited into his business account. Fair - but his business is not listed in the directory for bill payments (I'm not sure why this is) and there's no other way to look the company up in the system, at my bank (Chase) or at my girlfriend's bank (Wells Fargo). I called my Chase branch and they had no idea what I was talking about and kept telling me to just manually enter his information in the Bill Payment section - which I did, but they don't ask for account information there and instead will send my landlord a paper check if I go this route. He does not want a paper check. (Legally, he is required to accept a paper check, but I'd like to avoid annoying him any more than I already have with this ongoing issue.) Zelle requires a mobile phone number or email address, which my landlord does not seem to understand and he will not give me this information. He tells me that "no one else" has problems paying rent in the way he prefers, so there must be some way to do this that I am incapable of figuring out.
I do not want to open a new bank account somewhere else. What can I do to pay my landlord electronically every month, given the information I have from him, and without paying an extra fee to wire money?
My landlord wants me to pay his rental company through an electronic transfer. Previously, I was using Zelle to pay rent for 4 years - but I only have his personal email and phone, so this goes to his personal bank account. He wants the rent deposited into his business account. Fair - but his business is not listed in the directory for bill payments (I'm not sure why this is) and there's no other way to look the company up in the system, at my bank (Chase) or at my girlfriend's bank (Wells Fargo). I called my Chase branch and they had no idea what I was talking about and kept telling me to just manually enter his information in the Bill Payment section - which I did, but they don't ask for account information there and instead will send my landlord a paper check if I go this route. He does not want a paper check. (Legally, he is required to accept a paper check, but I'd like to avoid annoying him any more than I already have with this ongoing issue.) Zelle requires a mobile phone number or email address, which my landlord does not seem to understand and he will not give me this information. He tells me that "no one else" has problems paying rent in the way he prefers, so there must be some way to do this that I am incapable of figuring out.
I do not want to open a new bank account somewhere else. What can I do to pay my landlord electronically every month, given the information I have from him, and without paying an extra fee to wire money?
Do you have neighbors that rent from him as well? You might ask one of them how they are doing it.
If this bank is local, would he accept you depositing the check?
posted by soelo at 2:30 PM on December 1, 2022 [4 favorites]
If this bank is local, would he accept you depositing the check?
posted by soelo at 2:30 PM on December 1, 2022 [4 favorites]
Reading this related question reminds me of ACH transfers. Does Chase charge for them? If not, that might be an option and the magic word to use when talking to them.
posted by soelo at 2:41 PM on December 1, 2022 [2 favorites]
posted by soelo at 2:41 PM on December 1, 2022 [2 favorites]
I think he gave you the information needed for ACH transfers, which are often free at banks despite operating in a way that seems similar to wires.
If you actually need to wire money, Schwab online checking accounts have free wires out of a linked brokerage account. As a bonus they also waive atm fees.
posted by A Blue Moon at 2:45 PM on December 1, 2022 [3 favorites]
If you actually need to wire money, Schwab online checking accounts have free wires out of a linked brokerage account. As a bonus they also waive atm fees.
posted by A Blue Moon at 2:45 PM on December 1, 2022 [3 favorites]
Here are the instructions for Chase for doing an ACH transfer online, it should be free but will take a few days: https://www.chase.com/digital/transfer
Wells Fargo should have a similar method but it may be hidden.
posted by muddgirl at 2:58 PM on December 1, 2022
Wells Fargo should have a similar method but it may be hidden.
posted by muddgirl at 2:58 PM on December 1, 2022
Doh! Those instructions are for transferring between your own accounts!! I'm so sorry, Chase should have an option to pay directly to someone's account through ACH, you may need to check the desktop website, not mobile app or mobile browser.
posted by muddgirl at 3:02 PM on December 1, 2022
posted by muddgirl at 3:02 PM on December 1, 2022
That's all the information I need with my Credit Union's Billpay function to send an electronic transfer. I use it to send myself money in a different account (the CU doesn't have Zelle) and it works like a charm.
I don't see good documentation on how to do an ACH with a consumer Chase account to an account you don't control.
Here's how to do it with Wells. It may have the same problems that Muddgirl's Chase link has but it might be closer to what you need.
posted by Candleman at 3:03 PM on December 1, 2022 [1 favorite]
I don't see good documentation on how to do an ACH with a consumer Chase account to an account you don't control.
Here's how to do it with Wells. It may have the same problems that Muddgirl's Chase link has but it might be closer to what you need.
posted by Candleman at 3:03 PM on December 1, 2022 [1 favorite]
Hopefully others chime in here but I would be wary of sending money electronically to a business account that's not in the name of the business. In your lease does it list the company name, or the landlord's name? Is he going to provide you a receipt?
Personally, I wouldn't do this. I'd be concerned of money laundering or any nefarious purpose that might try to get out of or circumventing any laws or regulations. But that's me. I would write a check and deposit the money in person at the bank and write in the memo line "February 2022 Rent - Address" because if you decide to rent elsewhere and they try to verify and he's not responsive, how do you prove you paid rent on time?
If you try to get any security deposit back and he says you missed a rent payment, other than showing your bank statement but what if it shows up differently on there? I get not trying to annoy your landlord but I think it's more pertinent to CYA (cover your ass) legally. Because that to me seems more relevant than the inconvenience of a payment.
Sure, you don't want to open a new bank account, but that might be the best option. Also, I thought only funds in the name of a business could go into business accounts, but if you're transferring funds in his name, how can it be "earmarked" as rent payments from you? What if he gets audited? Or you do?
posted by VyanSelei at 3:38 PM on December 1, 2022 [2 favorites]
Personally, I wouldn't do this. I'd be concerned of money laundering or any nefarious purpose that might try to get out of or circumventing any laws or regulations. But that's me. I would write a check and deposit the money in person at the bank and write in the memo line "February 2022 Rent - Address" because if you decide to rent elsewhere and they try to verify and he's not responsive, how do you prove you paid rent on time?
If you try to get any security deposit back and he says you missed a rent payment, other than showing your bank statement but what if it shows up differently on there? I get not trying to annoy your landlord but I think it's more pertinent to CYA (cover your ass) legally. Because that to me seems more relevant than the inconvenience of a payment.
Sure, you don't want to open a new bank account, but that might be the best option. Also, I thought only funds in the name of a business could go into business accounts, but if you're transferring funds in his name, how can it be "earmarked" as rent payments from you? What if he gets audited? Or you do?
posted by VyanSelei at 3:38 PM on December 1, 2022 [2 favorites]
I just tried to see if I could find a way to transfer funds given a name, account, and routing number with both my Chase and Credit Union setup. It was not possible with either. I suspect that this is by design due to the fraud and typo potential.
It is possible to set up a transfer between accounts that you control if you have your name on both ends. Both the Wells and Chase instructions linked to above note that it is for linking two of your personal accounts. It involves entering in the account info, having the bank verify the names on each end match, and then they issue a few test transactions where you respond with the exact amount transferred to validate the fact that you have control of both ends of the link. I had to go through this two accounts so that I could easily move money between the two.
A business account is typically different. They can, given _your_ account info, do an ADH debit. Companies can also do the reverse and deposit things like payroll to your account. But again, they need your account info. (Side note: for some reason I get the sneaking suspicion this is not a proper business account but a dedicated personal account.)
They guy may prefer a direct deposit, but paper checks from the Chase Bill Pay is the way to go until he either sets up a Zelle account that is linked to his new account or contracts with a management company and you are willing to provide your account info to them.
Other than that, what VyanSelei said above. I also like checks since it provides a paper trail.
On the bright side, at least he is not asking for an envelope full of cash each month with no receipt.
posted by SegFaultCoreDump at 3:52 PM on December 1, 2022 [1 favorite]
It is possible to set up a transfer between accounts that you control if you have your name on both ends. Both the Wells and Chase instructions linked to above note that it is for linking two of your personal accounts. It involves entering in the account info, having the bank verify the names on each end match, and then they issue a few test transactions where you respond with the exact amount transferred to validate the fact that you have control of both ends of the link. I had to go through this two accounts so that I could easily move money between the two.
A business account is typically different. They can, given _your_ account info, do an ADH debit. Companies can also do the reverse and deposit things like payroll to your account. But again, they need your account info. (Side note: for some reason I get the sneaking suspicion this is not a proper business account but a dedicated personal account.)
They guy may prefer a direct deposit, but paper checks from the Chase Bill Pay is the way to go until he either sets up a Zelle account that is linked to his new account or contracts with a management company and you are willing to provide your account info to them.
Other than that, what VyanSelei said above. I also like checks since it provides a paper trail.
On the bright side, at least he is not asking for an envelope full of cash each month with no receipt.
posted by SegFaultCoreDump at 3:52 PM on December 1, 2022 [1 favorite]
Recommendation: sign up for Bilt. It can do this for you, and you'll get travel miles as well. The one downside is that you'll need to use their (pretty good!) credit card a few times each month to earn miles on your rent payments.
posted by kickingtheground at 5:01 PM on December 1, 2022
posted by kickingtheground at 5:01 PM on December 1, 2022
Agree that you want to find a way to do outgoing ACH payments. Not all financial institutions have a way to do this, but at least you know what you're trying to do. I would set it up at Xe.com, they can transfer basically anywhere in the world with the proper information, and they are dirt cheap. Wire transfers are the form of electronic payment that everyone knows about, but they are much more expensive and really only useful for stuff like house closings.
I would not be worried about sending money this way, the US is one of the few countries in the world where it's normal to write a paper check. You'll have the electronic record, far more secure and traceable than a piece of paper in the mail, in my opinion.
posted by wnissen at 5:30 PM on December 1, 2022 [4 favorites]
I would not be worried about sending money this way, the US is one of the few countries in the world where it's normal to write a paper check. You'll have the electronic record, far more secure and traceable than a piece of paper in the mail, in my opinion.
posted by wnissen at 5:30 PM on December 1, 2022 [4 favorites]
Best answer: Just as a data point, I used to be able to do this with my USAA and Wells Fargo accounts, and used it as a way to periodically reimburse family members. I tried to set up a new transfer recipient recently, and they seem to have stopped allowing this functionality (though the accounts I had transferred to before are still available, I just can't add new ones). You can now only transfer to accounts at other banks that are in your own name. Or use Zelle, which doesn't work for businesses, as you have discovered.
I wonder if something has changed at a regulatory level, or if banks were experiencing fraud this way. Or is it part of the deal banks cut with Zelle to stop offering transfers? It's definitely something I used to be able to do, and can't anymore, so it's possible that your landlord believes this is a reasonable request, and for whatever reason, banks aren't offering this service anymore.
posted by amusebuche at 12:14 AM on December 2, 2022 [2 favorites]
I wonder if something has changed at a regulatory level, or if banks were experiencing fraud this way. Or is it part of the deal banks cut with Zelle to stop offering transfers? It's definitely something I used to be able to do, and can't anymore, so it's possible that your landlord believes this is a reasonable request, and for whatever reason, banks aren't offering this service anymore.
posted by amusebuche at 12:14 AM on December 2, 2022 [2 favorites]
banks cut with Zelle
Zelle is owned by the major banks.
posted by Candleman at 9:20 AM on December 2, 2022
Zelle is owned by the major banks.
posted by Candleman at 9:20 AM on December 2, 2022
"I used to be able to do this with my USAA and Wells Fargo accounts, and used it as a way to periodically reimburse family members. I tried to set up a new transfer recipient recently, and they seem to have stopped allowing this functionality (though the accounts I had transferred to before are still available, I just can't add new ones)."
This capacity seems to depend on the bank, and it is not always well advertised: For banks that have it, it's typically called something like iPay. Some banks do encourage Zelle instead, but I've read about security problems with it in the past, so I have strictly avoided it. LIke your landlord, I ask my roommates to pay me by ACH check, and it goes into a business account through which I pay the landlord. There are three main benefits to it : (1) there are no fees for anyone, (2) it can be controlled online, so if a renters forgets to leave a check and goes on vacation, they can pay in a timely fashion nonetheless, and (3) there is a clean bank record of the transaction.
Long story short: This is a reasonable request.
posted by Violet Blue at 11:03 AM on December 2, 2022
This capacity seems to depend on the bank, and it is not always well advertised: For banks that have it, it's typically called something like iPay. Some banks do encourage Zelle instead, but I've read about security problems with it in the past, so I have strictly avoided it. LIke your landlord, I ask my roommates to pay me by ACH check, and it goes into a business account through which I pay the landlord. There are three main benefits to it : (1) there are no fees for anyone, (2) it can be controlled online, so if a renters forgets to leave a check and goes on vacation, they can pay in a timely fashion nonetheless, and (3) there is a clean bank record of the transaction.
Long story short: This is a reasonable request.
posted by Violet Blue at 11:03 AM on December 2, 2022
Response by poster: I finally got to the bottom of this. My bank only offers ACH transfers to people with business accounts, and I do not own a business or have an LLC and cannot open a business account. Wiring my landlord every month adds $35 to my rent, which is not reasonable. I will be paying by paper check, mailed directly from the bank automatically.
posted by twelve cent archie at 1:31 PM on December 2, 2022 [3 favorites]
posted by twelve cent archie at 1:31 PM on December 2, 2022 [3 favorites]
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