If you own property that you rent out, you want that income to be as passive as possible. Maintenance headaches, problem tenants, and property damage give you enough to worry about. Collecting payments should be the simplest part. A virtual mailbox with automatic check deposits can make the whole process easier and safer.
1. Automatically deposit rent checks you get in the mail
Most renters—especially long-term renters of residential property—still use personal checks to pay their rent. The labor-intensive process of tracking rent payments, security deposits, and monitoring tenants mailing in checks can get simpler when you set up a virtual mailbox for your property management.
With the automatic check deposit feature on a virtual mailbox, you won't have to make trips to deposit checks at the bank or individually use the mobile check deposit on your phone for every rent payment. Instead, a virtual mailbox service can detect checks you receive in the mail, electronically endorse them, and deposit them into your checking account.
The added benefit comes when you're traveling or away from your mailbox. You can manage your check payments from any device, anywhere in the world.
2. Keep electronic records of renters' payments
Hopefully, you haven't had the unfortunate experience of a renter who pays inconsistently or late. However, if that happens, your virtual mailbox provides an easy way to track all the records, so you don't have to sort through your bank statements or own records to track them down.
That's because virtual mailboxes digitize all your mail, including checks, into text-searchable PDFs that are stored in the cloud. You can use keyword searches to find all past mail from one address or person. The records of the checks can also sync with accounting software, such as Quickbooks.
3. Keep your personal mailing address private
Using a virtual address keeps you from disclosing your personal mailing address to people renting your property. This keeps your relationship strictly business, gives your property management business a professional appearance, and keeps the checks coming into your account without having to worry about opening the mail and scanning checks into your bank account or depositing them at the bank.
4. Use a virtual address to register your property management company
The virtual business address can also serve as an address to register a property management firm, should you prefer to organize your rental property income as an independent business to lessen your liability.
5. Protect rent payments from mail theft
We guard the security of our customers' mail and personal information. We assign every envelope and item a unique tracking number through its life cycle, so your documents are always secure and receive a thorough record of how and where each piece of mail moves through our facilities.
Compare that to the security you can expect from a traditional mailbox. Mail theft increased by 600% between 2017 and 2020, according to the U.S. Postal Inspection Service.
A virtual mailbox and automatic check deposit remove the risk of mail theft and the possibility of losing your paper checks.
How does automatic check deposit work?
Pick a virtual address
To modernize those rent checks you receive in the mail, you'll need to first select a virtual mailbox provider. Then, you select from available mailing addresses.
Earth Class Mail, a LegalZoom company, offers your choice of 80+ virtual addresses across the United States, all of which offer automatic check deposits.
Set up your account
Once you sign up for an Earth Class Mail virtual mailbox and verify your account, you need to activate the check deposit feature within your account settings. Provide the routing number for your bank, the account holder's name, and your account number to ensure your payments make it into your bank.
You're able to add as many bank accounts as you like, so if you receive payments to different businesses or people, you'll still be able to manage it all from one place.
You're able to deposit a check for $10 per check or choose a monthly plan for $39 per month. You can set up multiple bank accounts if you want to split payments between different accounts.
Receive checks in the mail
When we detect a paper check in your mail, it will automatically be deposited. There are no deposit limits.
Earth Class Mail offers electronic check endorsing, so you won't even have to touch the envelope to access your money.
When you receive a check in the mail, we will scan and upload the check to your account. From our platform or iOS mobile app, you can review your scanned checks online and choose what account you want them deposited in.
Check deposit features also allow you to split payments into different accounts.
Earth Class Mail will electronically endorse your checks and complete your deposit slip. Then, we send your paper check and deposit slip directly to your bank. It usually takes two to three business days to process.
Earth Class Mail's check deposit feature integrates with major bookkeeping software such as QuickBooks, Xero, and Bill.com.
