How To Email A Rental Application

We have made the procces of emailing a rental application very simple.  You don’t need to cut and copy and attach.

Here is what you do need to do.
Need to registered. (registration is free and simple) If you are not a registered member, go to www.rentingauthority.com and click on Free Rental Application (under Rule 1).  In the white box click on email rental application.  Follow the step by step instructions to register and customize your rental application.
Already registered: If you are a member, go to www.toolbox.rentingauthority.com and log in.  Click on email application under the heading Screen Applicant.
Fill in the applicants email address, Click send.  You and the applicant both receive a copy of the email.
The applicant clicks on a link inside the email and fills out the application.  The applicant also pays a $24.95 processing fee which covers your costs of running a background and credit check.
The Results:  You receive a rental application, background and credit reports on an applicant.  The reports and application are stored for you online at www.toolbox.rentingauthority.com.   You can review them and then accept or deny the applicant.
Emailing the application really is simple.  If you ever need any assistance, call or get our online support.
Thanks,
Troy

Applicant Warning Signs

This week I had some great conversations with many of you.  A couple of issues were brought up that you should all know about.

Issue #1The applicant doesn’t want me to run his credit because he doesn’t want his credit score affected. What should I do?
When you as a landlord check a person’s credit, it is called a soft hit on their credit.  This means it will only stay on their credit report for 2 to 3 months.  Their credit score will not be affected long term when you check their credit.
I have found often that a person who does not want you to check their credit has credit issues that they are hiding from.  You need to establish your own rule that you check everyone’s credit. 
Another thing to consider is if an applicant is trying to dictate how you run your business now, they will continue to cause you issues in the future.

Issue #2
My tenant wants to pay cash.  What should I do?Cash is king, but not in the landlord business.  This is big red flag. Why? People often want to pay cash because they do not have a checking account and they have money gotten from illegal means.  Drug dealers are some of the biggest offenders of this.  Now this does not mean that everyone who wants to pay with cash is doing something illegal nor is a drug dealer.  It is better to be safe that sorry.
Last week I received an email from a landlord who rented to a person who seemed to be a great applicant and wanted to only pay in cash.  The tenant paid the deposit and first month’s rent in cash.  That was all he ever paid.  The landlord is now going through the eviction process.

In summary, screen your applicants and don’t take cash.

Screen Applicants like a Crime Scene Investigator

You are so excited, someone finally filled out a rental application.  You look at the credit report and the credit is score is between 540 and 580.  Your hopes drop.  They seem like nice people who have had a bit of bad luck and need a second chance.  Well, if that sounds familiar, you need to put on your detective hat, gloves, grab your blue light and start investigating.

Let’s investigate three common factors that affect a person’s credit.  I’ll set the crime scene (credit factors), give some clues and help you draw conclusions.

1.         Crimes Scene: Credit cardsClues:  If a person does not have any open credit lines within the past 6 months, the credit bureaus will not give a score.  If a person’s credit card carries a balance of 50% or more than the card’s limit, the score can go down by as much as 40 points.
I’ve unknowingly done that and my credit dropped drastically.  I paid the card off and my credit shot up. 

2.Some people are very responsible paying their bills, have little to no lates but still have a low credit score.  High credit card balances is often the reason.

A person with a lot of open credit cards also can negatively affect his or hers credit.  Keep the number of credit cards you use to a minimal.  Too much open credit is viewed negatively, because a person can get into debt very quickly.

Conclusions:  Verify the applicant has enough income to cover all of their bills and rent.  Ask to see a pay stub, call and talk with their employers.  Renting Authority can call and verify employment if you don’t want to hassle with it.

3.     Crime Scene: Medical IssuesClues:  Medical bills can become uncontrollable for most anyone.  Even if you have good insurance, some treatments and emergencies can make most people go broke.  I have a brother who lost two sons in the past 14 month to cancer.  Beside the grief from losing two children, the bills are outrageous.

Conclusion:  Is this still a credit worthy person to rent to?
Look at the dates on the credit report where medical collections show.  Most medical issues I have seen cover a 6 month to 2 yr time period.  You may notice there are lots of lates in this same time period.  If after this time period you do not see lates, other collections, then the person is onto credit recovery.  This may be a good tenant.

3.         Crimes Scene:  Charge offs, Bankruptciesand LiensClues:  Public record information gives a lot of clues about a person’s credit worthiness.  I think we all agree that charge offs, bankruptcies, foreclosures and liens are bad.  None of us want them.  However, (and this is a big however), sometimes they really help a person’s credit in the long run.

Conclusion:  Charge offs are classified as satisfied and or open.  If it is satisfied, it means that a person paid off the debt even after a business wrote it off.  A person who satisfies a charge off shows character.  This is a person who cares about paying of their obligations. They are more likely to pay their rent. The same is true for liens.

Bankruptcies can help a person get out from under a financially difficult and oppressive situation.   Bankruptcies definitely hurt a person’s credit.  And it shows up for 7 yrs.

Clues:  The good in bankruptcies is it gives a person a second chance to rebuild their credit.  Look at the date of the bankruptcy and see if there have been other negative credit issues after that date.

Conclusion:  If everything is positive after the bankruptcy, the person is probably a good risk.  I have seen credit scores in the high 600s and low 700s with a bankruptcy in the past 3 yrs.

A good forensic investigation yields good tenants.  If you need help understanding a person’s credit, please call or write.  I am always glad to help.
Thanks,
Troy
888-674-9181
tboldt@RentingAuthority.com
www.RentingAuthority.com

Recently, your report revealed a sexual offender

Hello, Troy.

My name is Leo, and I run a residential apartment building in Lubbock, TX.

I’m sending you this email to show my appreciation for your excellent screening service.

Your reports are very promptly generated, and they contain very accurate data regarding applicants’ backgrounds.

But that’s not the only reason for this email today.

Recently, your report revealed a sexual offender that came to me to apply for an apartment unit, so I was able to deny his qualifications based on that information.

Although I believe everyone has his/her story, a sexual offender is definitely not good for the business and is probably too much of a risk for me and the neighbors to have live in my property.

So, thank you, Troy, for providing this excellent service.

Keep up the excellent work!

Best Regards,

- Leo -

Lubbock, TX

Your tenant might be a redneck if…

Every week I am flooded with hundreds of emails.  This is one I received last week that really stands out. 

  

Hi, Troy
I just rented my home to a couple on August 1, 2008.  I do not want to cause any trouble so early in the rental becuase they seem to be good tenants.

I found out last week that they put up a two-seater tree stand to hunt deer.  I do not want them to hunt on the property.  It does not state in the rental agreement as such because no one has ever hunted deer on the property.

 I called and told them I will not allow any hunting.  They said they would remove the tree stand to the neighbor’s property.  My lot is only 80 feet wide.  Other neighbors do not allow hunting either.

In the State of Ohio, they have to have written permission to hunt which I will not give them.

How can I get this resolved in a legal manner without causing hard feelings?  Also can I revise my rental agreement to state that no hunting is allowed?

Any insight you can give me on this issue would be greatly appreciated.

Thank you,

J.B.

I think if Jeff Foxworthy read this email, he would say.  If your tenant has a two-seater tree stand in the backyard to hunt deer, he might be a redneck.

All jokes aside, there are three issues to deal with here.

1. The lease
2. Safety
3. Liability

A lease can always be altered and resigned at anytime.  The catch is the tenant must agree to sign a new lease and any new provisions in the lease agreement.

Safety of the tenants and neighbors is always a good landlord’s concern.  I don’t think any of you want someone injured on your property or by one of your tenants.  Landlords need to provide a safe environment for the tenant.

Liability issues have kept thousands of landlords awake at night.  If there is someone injured on your property or by your tenant are you liable?  Very possible.  Our courts and attorneys will ultimately decide on that.

How do you solve the hunting issue?

If gentle persuasion does not work, you need to get tough with the tenant.  Most leases have a clause stating that illegal activities are grounds for eviction.  Hunting without permission is illegal.  You may have to evict the tenant. Contact a local attorney when you feel the tenants are not responding.

Most landlords will never have a hunting issue to deal with.  But the principles here can be applied to any activity that is illegal or threatens the safety of others.

Git-r done,

Troy

P.S.  We all need a little laughter in our lives.  I found a funny commercial from X Box 360 on www.youtube.com.  Don’t click on this if you don’t want a laugh or are offended by redneck humor.  Please remember, this is an advertisement only. It is not reality.

http://www.youtube.com/watch?v=StOJr2k5Y-U

Landlord Extorted for $12,000

Landlord Extorted for $12,000

Consistently using a standard application can protect you from costly lawsuits. Let me give you an example why. Let’s say you need to rent an apartment. You have 5 individuals come by and look at the apartment. You choose applicant number four. It sounds like he has a great job and is clean cut. A few weeks later you get a phone call from applicant #2′s attorney. He claims that you discriminated against his client because she is a Mexican and has two children. The lawyer goes on to state that he will settle for $12,000 or he will take it to federal court and sue you for $55,000.

    Unfortunately, you have no documentation from the applicants. You have nothing standardized like an application or credit and background report to support your decision. The attorney knows this and knows he can win a settlement.

    Your insurance company will settle for $12,000 because they know the expense of going to court and the probability of loosing. They know you have no documentation and are very exposed. If you really want to protect yourself, please do the following.

    Using a standard application and running a background and credit check for all prospective tenants can greatly help limit discrimination lawsuits. Lawsuits are very expensive and time consuming. Store the application, either electronically, or a hard copy in a secure filing cabinet. Run a background and credit check

Who wants to get sued? None of us, so please take every precaution. Prevention is the best medicine.

Have a great day,

Troy Boldt  

www.rentingauthority.com

Is Employment Verification Really That Important?

Employment verification is an extremely important step in the tenant screening process.  Generally, a renter needs a good job so he or she can pay the rent.  Let me give you a list of things to inquire about.

One of the most important things is to pay attention to is: who and how the business phone is answered.  Why, because some people will give you a friend to call and pretend they are the employer.  The phone should be answered with a business name.

Ask for the applicant’s supervisor or boss.  This information should have been provided by the applicant on the application. 

Ask the following questions:

• How long has the applicant been employed there?
• Is he or she currently employed there?
• Is the job full time, part time or temporary?
• How many hours a week does he or she work?
• Verify the monthly income.  (Employers do not always give out this information.)
• Does their job future look good?

Make sure to do good employment verification.  If you do not have the time to do it yourself, Renting Authority can help you. 

This is how you run an Employment Report:

• Log into the Property Owner’s Toolbox
• Select Past Rental and Employment Reports. 
• Click the box for Employment Report
• Fill in the needed information and we take care of the rest.

You receive your Employment Report in 24-48hrs  

The Cost is only:

$6 for Employment Verification

$6 for Rental History Verification

Only $4 each with your upgraded membership

Up grade your membership now

  

Click here to view a sample Employment Report

Login and order you Employment Reports now

To your success,

Troy

Renting Authority

tboldt@rentingauthority.com

888-674-9181

Rental License Seminar

October 15th, 2008

Hello Troy,

 

I have given your company name and website to about 25 to 33 people who attended the Rental License seminar requirements for the Village of Glendale Heights, IL.   So if you have an rental application from Glendale Heights, IL. you know for sure it came from me.

 

Thanks for your time,

 

Maria

Glendale Heights, IL

Is 500k worth 25 bucks?

I had nearly identical conversations with two new landlords this week.  The conversations went roughly like this.

I found someone to rent my house.  I just need them to sign the lease. I am not sure if I want to spend the money on running a credit and background check.  I don’t want to change the applicant an application fee and scare them off either.

What do you suggest?

Of course, I suggested they run background and credit checks.  You might say, you suggest that because Renting Authority makes money from background and credit checks.  That is true, but it is a necessity.  When the economy is unstable, you must stick with the basics.

• Have applicant fill out and sign a complete rental application.
• Run background and credit reports
• Do employment and rental verification.
• Have applicant sign a rental lease agreement.

Here’s another strange occurrence.  Unfortunately, I keep hearing stories like this more and more. 

  Read the rest of this entry »

Operation Moneysuck

My mentor Perry Marshall, sent me an excellent article about doing what is most important in business.  I am inserting part of his article to introduce you to this concept.

A few years ago, John Carlton told me this story about his edgy writing career with copywriting legend Gary Halbert:

   “I think the term Operation Moneysuck is a term that makes people chuckle. But to be honest, it is the most deadly serious thing for any businessman to learn. The earlier you learn it, the better you are going to be. The more you take it to heart, the more profitable your business is going to be. 

   “I’ll tell you quickly how this story happened. When I sat in a office with Gary Halbert, we were supposed to go over a bunch of ads that we were going to write. We had a lot of business so we were going to call some clients. We had some hours to do this. 

   “Just as we sat down, his secretary came in and said, “OMG, your landlord is on the phone and he is really pissed about something.” The copier just broke, the computer just went down and there were 15 fires that were going on essentially. 

   “I thought to myself, “That is it. We are not going to get down to any business here because we have to stop and take care of these little emergencies, but how.” Halbert really surprised me and said, “Calm down, back up, get out of the room, close the door, locked it and not another word of explanation.” Then he came back and said let’s get busy. And, we worked for the next three hours, got a lot of business done and brought in a lot of money. 

   “When we opened the door later, we found the problems had solved themselves and the ones that hadn’t weren’t that important anyway.

So right about then, what I really got jammed into my head was what Operation Moneysuck was about.

What is your number one job as a landlord or property manager? 

  Read the rest of this entry »

Information is King… Want to be King?

The better and more information you have, the better decisions you make.  It’s really that simple.  The problem is getting good information for issues you have now!

Forum

Renting Authority has a solution.  We created an Independent Landlord Forum and Blog. The Forum is an on going discussion of issues that landlords deal with on a day to day basis.

You can read questions other landlords have and see how they have dealt with them.  Not only do you get our expert advice, but the advice of thousands of other landlords working in the trenches.  This is one of the most powerful resources you have as a landlord.  The best part of the forum and blog, it cost you nothing.

Here are some of the topics discussed today:

• Lease Agreement
  • Can the tenant break the lease agreement?
  • Room Mate Lease Agreement Problems
  • New lease questions
  • What are landlord’s liabilities if landlord breaks the lease?
• Background and Credit reports
  • Renting to someone who is in bankruptcy
  • Moneys up front
  • Names on lease agreement
• Landlord Advice
• Tenant Trouble
  • Feuding Tenants
  • House in a bad Neighborhood

  Read the rest of this entry »

Lovers Fight and 18 Bullet Holes

Hello Troy -

 

I rented a home to a woman Nov 1 2007.  Her credit was not the best, so I charged a little higher deposit.  Rent is 650.  I charged her 950 deposit.  She was/is a very sweet woman w/ two nice grown children & one grandchild.  The only fault I ever saw in her was that she was very naive for a grown woman.

 

In June my tenent had a “boyfriend” @ her house.  The boyfriend’s “girlfriend” came over @ 4:30 AM & shot 18 holes through the front door, kicked the door down, shot the beautiful & new hardwoods, the stove (which is mine), dining table & chairs (mine) & holes in the walls.  I immediately had a contractor over & in two days there was not a trace that one shot had ever been fired.

 

Then the tenet was uneasy about living in the house, so she never really stayed there very much, so I had to go over & water plants to keep them alive, cut the grass, everything to do w/ outside the house.  My lease does not include “watering flowers” but since I spent a lot of money for those plants, I want them to last many, many years.

 

The tenet continued to pay me post dated checks though she was not living in the house.  I started advertising the house for rent in Sept.  A few people asked, “is this the house I read about in the newspaper that the lady came over & held off six police officers for 2.5 hours?”  I try to look surprised…It is in a rural, very safe & good area & we have never experienced any violence like this.  The couple who live next door (my tenents) almost left because of the incident.  They watched the entire stand-off w/ the deputies for over two hours.  The woman started early contractions & two days later miscarried.

 

Not sure what my question is.  The tenant has paid for the repairs & has paid her rent thru the end of this month when her lease ends.  So she has fulfilled her lease, but the stigma she put on that house (thru no fault of her own really – just bad taste in men?) has had a big impact on me and my couple next door.  I guess I need to forget that night, forget the tenant and give her a full refund for the deposit?  What do you think?  I have many attys in my family & when I told them of the shooting incident, the majority said, “get rid of her now!”  But I let her stay & we talked a lot about her “nerves”.  Isn’t this a crazy story? 

 

Thanks,

Tish

How can Trish reestablish her propertyies immage?

www.rentingauthority.com

You must have an online presence!

Finding apartments has become an online endeavor!

Over 90% of applicants say they look online first when apartment shopping.

But you’re a landlord not a webmaster.  That is exactly why Renting Authority’s website builder is one of our hottest products.  It is so simple and the end product is professional.  All this is FREE with your upgraded membership.

Your website includes:

• Pictures and descriptions of your rental
• You can include multiple rentals on one website
• Easy tools to manage and change your web site in seconds
• Links to online rental application and online rent pay
• Web sites allow you to stay in communication with current tenants (address book)
• Show your apartment to possible applicants online first.  Saves you time and money.

Create your own website in about 15 minutes with Renting Authority.  This benefit alone is worth more than the cost of the upgrading your membership.  Let’s break down the cost of building your own website without Renting Authority. 

Cost without Renting Authority

Web designers charge between $500 to $800 to create a website for you.  Then you pay an average hosting fee of $19.95 per month.  If you want to make changes to your website, you have to pay a webmaster for the changes.  Average hourly charge is $55.  Most charge a minimal of 1 hour.  So each time you need to change a listing, it costs you around $55.  With Renting Authority, you can make your own changes.  It is easy to do and you have support.

Oh yeah, Renting Authority’s websites have a couple of feature you will not get anywhere else.  Online rental applications.  This is not just a PDF that applicants download and fill out.  It is a real electronic application.  The applicant fills it out online, pays an application fee online, and then Renting Authority automatically process the background and credit reports.  Sorry, but no webmaster can create that for you.

One more thing, you can accept online rent payments with your website.  Very cool.  Send your tenants to your website and they can pay by check or credit card online.  The best part about online rent pay is you don’t pay any processing fees.  That’s right.  The tenants pay a small convenience fee when paying rent online.

Sign up Today!

View Demo Site

View the Website Creation demo to see how easy it is to set up your own website.

If you have any questions about online rent pay or any of our products, please click the customer support button

Sincerely,

Troy Boldt

 888-674-9181

www.rentingauthority.com

tboldt@rentingauthority.com

Discrimination Quiz

Please read this.  I never want this to happen to you.

Take this short illegal discrimination quiz.  See if you are inadvertently discriminating.
Have you ever done the following?

1. Told an applicant there is not an opening because you did not want to rent to that person, when there really is an opening.
2. Advertised in such a manner that indicates a preference base on group characteristics, such as skin color or sex.
3. Set restrictive standards for certain applicants and not others, such as higher income.
4. Refusing to reasonably accommodate the needs of disabled clients, such as hearing dog, sight dog, or other service animals
5. Had different sets of late payment penalties for different tenants.

The Fair Housing Acts prohibit landlords from taking any of the above actions based on race, religion, or any other protected category.

Consistently using a standard application protects you from costly lawsuits.

Using Renting Authority’s rental application and tenant screening process help you avoid discrimination lawsuits.  They are a great tool that you now have access to.

Don’t worry, Renting Authority provides you with the best rental applications at no cost.

Follow this link and customize your rental applications today.  Select print application or email application.

www.toolbox.rentingauthority.com
Sample application 
http://www.rentingauthority.com/videodemo/genericapp.html

Email an application to yourself

http://www.rentingauthority.com/videodemo/genericapp.html

Have a great day,

Troy Boldt

888-674-9181
tboldt@rentingauthority.com
www.rentingauthority.com

The Reality of New Year’s Resolutions

It’s been about a week since you sat down and made your proverbial New Year’s Resolution.  Odds are you are doing well keeping them so far.
Your glowing determination to succeed fades quickly after a few months.  Here are the revealing realities of New Year’s Resolutions.
40-45% of adult Americans make one or more New Year’s Resolutions.
75% keep resolutions past 1 week
71% keep resolutions past 2 weeks
64% keep resolutions past 1 month
46% keep resolutions after 6 months.
That means only 16 to 20% of adult Americans stick with a goal longer than 6 months.  80-84% of Americans fail completely. Explicitly writing out goals increases success rate by 10 times.

America’s most popular New Years Resolution.
•    Lose Weight
•    Manage Debt
•    Save Money
•    Get a Better Job
•    Get Fit
•    Eat Right
•    Get a Better Education
•    Drink Less Alcohol
•    Quit Smoking Now
•    Reduce Stress Overall
•    Reduce Stress at Work
•    Take a Trip
•    Volunteer to Help Others
Read the rest of this entry »

Craig’s List and Renting Authority

I use Craig’s List as a way to find my tenants. I have found several good matches this way. I always post in my adds that I require an in person appointment and that I will require a credit & background checks.
This way it helps to weed out the scammers and losers. Thanks to Renting Authority, I have the ability to screen them, even though I am just one person with one property renting out separate rooms.
Beth

Top 50 Landlording Rules

1. It takes a special kind of courage to pour your money into investments in an economically depressed area. Most people, including me, aren’t that brave. So if you live in a part of the country where people aren’t doing that well, you’ll probably find better properties elsewhere. On the other hand, there are special risks involved in real estate investments far from your home.
2. If you decide to look for investments elsewhere, your first problem is finding the right area. Your second task is to learn the area well enough to make a smart buying decision. Finally, you have to pick the right property or properties for you. You only have so much money to spend, and you want to maximize your return on investment. Of course, the worst possibility is that you could lose all your money, or more (which would mean filing bankruptcy).
3. There seem to be two ways to do long-distance real estate investing. The first way, which I don’t recommend, is by talking to a salesman marketing investments in what he says are a hot area. It’s possible that some of these are good deals. I guarantee that many of them are terrible. In any case, it makes a lot more sense to be methodical; pick your area first, your city next, your property last.
4. There are also a couple of different ways to pick your area, and as usual, the harder way will give better results. The easy way is to find a newspaper story: “Hottest Real Estate Markets in America.” The problem with these areas is that they are usually at the halfway point, at least, of their growth trend. They may be near the peak of their growth trend; the next few years will bring a stable real estate market at best, or a declining market at worst. Read the rest of this entry »

Online Rent Pay FAQ

What is Online Rent Pay?
Our service allows Renters to pay their rent and deposits, over the Internet. All transactions are deposited into the Property Manager/Owner’s bank account.
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What are the benefits of using the Renting Authority service?
Online rent payments will be the norm in the near future. Enjoy the ease of not cashing checks, automatic deposits, and electronic record keeping, avoiding lost or late payments, and improved service for your Residents.
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The Internet is increasingly the place of choice for businesses to reach and connect people. Prospective Renters are turning to the Internet now more than ever to fulfill their living needs.
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How do the transactions occur?
1. The Payer submits their payment in the secure Pay Rent section of your website.
2. The transaction is processed in the Automatic Clearing House (ACH) network.
3. The payment is deposited into the Payee’s checking or savings account.
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What are the fees for using Online Rent Pay?
There is a $5 transaction fee for each payment paid by check submitted through the service.  Credit card transition fee is $5 plus 3% of the transaction.  All paid by the tenant.
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Do you receive a confirmation that a payment has been submitted?
For each payment submitted on Renting Authority, the Payer and Payee will receive a confirmation email with the transaction id if a valid email address has been entered in the profiles for the users.
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How do I know the system is secure?
All transactions on Renting Authority are 128-bit encrypted and we use industry-standard Secure Socket layer (SSL) technology to protect your information.
We will never request or send your bank account information through email, if you ever receive an email requesting your bank account information please contact us immediately.
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Member FDIC
Renting Authority processes every electronic payment through institutions insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC insures deposits in banks and thrift institutions for up to $250,000; identifies, monitors and addresses risks to the deposit insurance funds; and limits the effect on the economy when an insured institution fails.
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CISP Compliant
Renting Authority is in full-compliance with Visa’s Cardholder Information Securty Program (CISP). Since its launch in April 2000, CISP has defined a standard of due care for securing Visa cardholder data, wherever it is located. CISP compliance is mandatory for all entities storing, processing, or transmitting Visa cardholder data.
Renting Authority adheres to strict policies for providing the highest level of data security at all times. Renting Authority maintains CISP compliance by adhering to all of the following security requirements:
* Working firewalls
* Up-to-date security patches
* Protection of stored data
* Encryption of public networks
* Regularly updated anti-virus software
* Restricted access by “need to know”
* Unique ID to each person with computer access
* No vendor-supplied defaults for passwords and security parameters
* Access tracking to data by unique ID
* Regularly tested security systems and processes
* Regularly maintained information security policy
* Restricted physical access to data
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How does the ACH process work?
The Automated Clearing House (ACH) Network is a nationwide batch-oriented electronic payment network to transfer funds between financial institutions. ACH payments provide improved cash management capabilities and lower costs than traditional paper payments by electronically debiting or crediting a company’s or individual’s deposit accounts, such as checking and savings accounts. The ACH Process consists of the following steps:
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1. A company or individual (Receiver) authorizes another company or individual (Originator) to initiate a transaction to their financial institution account.
2. Then the Originator submits the transaction to an Originating Depository Financial Institution, known as an ODFI.
3. The ODFI collects ACH transactions and then submits the consolidated information to an ACH Operator.
4. The ACH Operator processes the transactions from the ODFIs and distributes the transactions to the Receiving Depository Financial Institutions, know as an RDFI.
5. The RDFI receives the entries for its customer accounts and then posts the entries on the settlement date of the transaction.
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How do I contact Renting Authority?
You can use one of the following options to contact us, please let us know if you have any questions, comments, or suggestions:
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Email
support@rentingauthority.com
Renting Authority Customer Service Representatives are available to assist you Monday through Friday 9:00 AM MST to 5:00 PM MST
Telephone
1-(888) 674-9181
Fax: 1-(801)-406-0104
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Renter’s Common Questions
What are the Registration steps for a Renter?
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The renter clicks on the pay rent tab located in your website.  Follow the step by step instructions.
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Do I have to create a profile?
Yes, Renters are required to create a profile on the Renting Authority service in order to submit a Rental Payment. Creating a profile allows the Renter to easily submit Rental Payments without having to re-enter their account information for each payment.
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Can payments be submitted via telephone?
No
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Does Online Rent Pay allow credit cards to be used for paying rent?
Yes.  Renters pay a transaction fee of 3%  of the rent amount plus $5
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Property Manager/Owner’s Common Questions:
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What are the Registration steps for a Property Manager/Owner?
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Fax the following information to (801)406-0104:

• A copy of a voided check for the checking account associated with the property.
• A copy of a valid government issued I.D.

After we receive the voided check and I.D. we will activate the property so you can begin accepting rent payments online.
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What is required to Activate a Property after it has been added?
For your security we require the following be faxed or emailed to us for each bank account used for receiving online payments:
- A copy of a voided check for the checking account associated with the property
- A copy of a valid government issued I.D.
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Fax: 1-(801) 406-0104
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Once we receive these two items we will activate your property so that you can begin accepting rent payments online. If you have multiple properties and use the same bank account for each property you only need to send the information once. If you use different bank accounts for your properties please send a voided check for each bank account.
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How fast will I get my rent money?
First time users of Renting Authority’s Online Rent Pay are required to wait a minimal of 5 business days.
Landlords in good standing with Renting Authority receive sub sequential Rent Funds in 3-4 business days.
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The funds will be deposited into the Payee’s banking account within 3-4 business days of the payment submission.  Payment must be submitted before 3pm EST to count for that day.  Payments received after 3pm EST will be processed the following business day.
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What happens if a rent check bounces?
The tenant is charged a $25 fee.  If Renting Authority has already transferred funds to the landlord, funds will be pulled back out of landlords account.
If funds have not yet been transferred to landlord’s account, landlord receives an email from Renting Authority informing of returned check.
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Renting Authority reserves the right to hold future rent checks transfers for a minimal of 5 business days with 2 of more returned checks within a 3 month period.
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Is Renting Authority acting as a collection agency?
Renting Authority’s Rent Payment Service assists both you and your Renter by facilitating electronic transactions between the parties. Renting Authority simply provides an electronic alternative to the traditional forms of rent payment. While this electronic alternative will bestow numerous benefits on both Property Owner/Managers and the Renter, the collection of such rents and related payments remain their legal responsibility. Renting Authority is in the business of simplifying the rent payment process, but unfortunately we are not in the business of collections.
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Can I use Online Rent Pay for any type of property?
Any property you are collecting payments or fees for can be used with Renting Authority, such as residential properties, multi-family properties, commercial properties, and vacation properties.
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Can I use different bank accounts for each property?
Yes
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Can I charge a late fee for late rent payments?
With Renting Authority you can specify what day of the month rent is late after and what fee to charge for late rent payments and the system will automatically generate a late fee transaction for late rent payments. When a fee is charged for late rent payments a separate transaction will be created to debit the renter instead of adding the fee amount to the rent payment.
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There isn’t an additional transaction fee for the late fee transaction though. The late fee transaction is scheduled for 2 days after the rent payment in order to provide time for the property manager to cancel the late fee before it is transmitted to the ACH system if warranted. The automatic late fee only applies to rent payment transaction types and not other transaction types, such as security deposit or utility payment for example.

LLC vs Sole Proprietorship

An initial important decision when starting a business is what business structure you should use to operate the business. If you don’t already, start considering owning rental properties your business.
Most small business owners wonder whether the limited liability company (also known as the LLC and sometimes referred to as a limited liability corporation) is necessary or whether a sole proprietorship is sufficient.
Liability Protection Is the Major Difference
When you form an LLC for your business, the law provides you with a layer of protection that protects you, the owner of the business against being personal liable for the debts, obligations and lawsuits of the business.
What this means is that if the business is found liable for an obligation, you will not automatically be personally liable for it merely because you are the owner of the business.
On the other hand, if you operate your business as a sole proprietorship, there is no such layer of protection. You are your business and your business is you.
What this means is that all of your assets (your home, your personal savings and retirement, your car, jewelry and anything you own) are at risk in the event someone sues for business related matters. Keep in mind; landlords are the number one sued industry in America. And property managers make the top ten list.
Likelihood of being sued
So, the main question is . . . given your particular business endeavor as a landlord/real estate investor, what is the likelihood and chance that your business will be subject to obligations and lawsuits?
Before you get into this inquiry for your particular situation, here are some important facts to consider:
1. Given the statistics, your chances of being sued are higher than your chances of being hospitalized in the next year and this likelihood greatly increases as you accumulate more rental properties.
2. Lawsuits are an epidemic in this country and small businesses that generate income are primary targets.
3. If you are sued (even if the case is frivolous and without merit, you will need to defend it which can require personal assets if you are personally sued.
4. Given the low cost to form an LLC and the ease of maintaining a limited liability company, lawyers and accountants universally recommend the use of such a vehicle.
5. If you have any assets at all, it is not worth taking the risk of losing them by starting a new venture without any liability protection.
6. Even if you do not have assets (or equity in your property) and your business is just beginning. . . if your business grows (equity increases) and becomes a valuable asset, it will become a prime target because it is generating money (lawsuits are always about money). Forming an LLC later does not protect you from actions and liability incurred prior to formation.
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Given the above information, the only time anyone would operate as a sole proprietorship business is if the nature of the business does not give rise to any liability potential and you do not have any real assets to lose.
Insurance is another way to protect against liability and should always be used as well. However, insurance policies can have exclusions and limitations, so the smart business owner uses both mechanisms to protect themselves and their business.
So, what can give rise to liability?
Whenever your business interacts with a third party, a chance arises. Common Examples include:
* A criminal act is committed on your property; such as rape or assaults
* Slip and fall of tenant or their guest
*Automobile accident involving you or an immediate family member
* You hire a contractor and there is an accident or business dispute;
* You have an employee and are sued for an employment claim
* There is a car accident in your parking lot or you have a store and someone falls in your store and is hurt.
* You sign a contract and do not read the fine details. Next thing you know, you are being sued for not performing under the contract.
* Your business borrows money and the bank sues to collect
* You enter into an order with a vendor and there is a dispute
Lawsuits are almost always about money. When your business becomes successful, there are so many creative lawyers out there that look for ways to extract money from you.
Without protection, you are an even higher target because they know they can reach not just your business assets but all your personal assets.
Many mistakenly think that an LLC is not necessary until you become successful. Forming an LLC later does not protect you from all business activity incurred prior to the formation.
The costs to Form an LLC are so low and given this liability protection as well as the other advantages of an LLC to a business owner, the use of this entity should be strongly considered.
Other Advantages of an LLC over a Sole Proprietorship
In addition to liability protection, the limited liability company offers several other benefits over a sole proprietorship structure:
1. More Trustworthy and Professional Image
Anyone can call themselves a sole proprietorship business but it takes a filing requirement to set up an LLC to operate a business.
Given the many fraudulent businesses and scams out there, customers prefer to do business with legal entity businesses.
By having a business vehicle such as an LLC, it shows that the business owners engaged in some business planning and were smart about properly starting their business. This results in differentiating your business from the many non-legal entities out there.
This makes it easier to get customers when starting and building your brand.
2. Less Risk of Tax Audit
Sole proprietorship businesses are where most of the small business tax fraud comes from when it comes to taking unlawful deductions. Without any formal filing requirements, many can claim they run a business to try to pay less taxes.
For the same reasons noted above in #1, the IRS understands that having a legal entity is one factor which differentiates legitimate businesses from the rest.
Of course, this is not all you need to do to reduce audit risk. You should also keep good records and accounting practices and file your taxes on time.
3. Better Structure for Raising Capital
A sole proprietorship is set up for a single owner. What this means is that if your business ever got to the stage where you want to expand and need to take in equity capital for the expansion, your sole proprietorship structure will not be acceptable to most investors.
Even if you find an investor that will work with a sole proprietorship, the costs to structure the investment will be exorbitant and the legal papers complex.
If you form an LLC and have an LLC, there is the concept of ownership interests in the legal entity. This creates an automatic and widely accepted structure for investors.
You may think that you can just convert or form an LLC at a later date if needed for this. The longer a business waits to convert, the more complex the transition will be. This can scare off your investors if the lead time and complexity is too high.
An LLC gives you a simple structure to operate from on day one but provides flexibility to evolve and change as your business grows.
4. Some Customers/Vendors Require Legal Entities
There is a strong movement today of business customers and vendors having policies requiring that they only do business with legal entities such as an LLC.
This is because the liability of doing business with individuals is too high.
A customer who wants to retain your personal services does not want to take the risk that the IRS will view you as an employee and not an independent contractor as this gives rise to liability for the customer.
5. Business Continuity
A sole proprietorship is not designed to automatically continue if something happens to the business owner.
By definition, a sole proprietor business is an extension of the single owner and so if the owner were to die or become incapacitated, the same thing happens with the business.
This is a huge nightmare for the heirs of the successful business owner. In contrast, an LLC is an entity separate and apart from the owner or owners. Accordingly, the business retains its life and characteristics despite what happens to owners.
Call today and schedule a no cost, no obligation assessment regarding your asset protection needs.
888-674-9181
Costs and Process to Form an LLC
The advantages of an LLC over a sole proprietorship are quite numerous.
The only concern would be whether the costs to form an LLC are prohibitive or the effort to maintain it is difficult.
Good news here as well: The legislatures of most states want to encourage small business and so they specifically enacted LLC laws to make it easy for small business owners to take advantage of all the LLC benefits.
It is true that an LLC requires some fees and paperwork. Just think of these resources as an insurance policy to protect a lot more.
It is really important that you form an LLC properly to ensure liability protection and other benefits. We take the guess work out of setting up an LLC properly. 1,000s of people have used us to create LLCs.
After formation, most states charge a minimal annual fee and/or the filing of a simple report each year to renew the registration. Some do not charge anything or require any additional filings.
Single Member Taxation is Same as Sole Proprietorship But With More Options
Many business owners have this mistaken fear that if they form an LLC for their business, the taxation will be too complex.
If you are a single owner and you set up an LLC for your business where you remain the single owner, the Internal Revenue Service treats your business as if it were a sole proprietorship. There is absolutely no difference in tax treatment for federal income tax purposes. . . however, you get all the state benefits of an LLC such as liability protection.
If you run a sole proprietorship business, you are limited to one taxation structure- sole proprietorship taxation. However, if you run your business through a single member LLC, your business has the option of being taxed pursuant to sole proprietorship taxation, C corporation taxation or S corporation taxation.
In summary, there is no tax difference to use an LLC for the single owner, but you get even more. If in your specific business situation, it may be more tax advantageous to use a corporation tax structure, you can do this with an LLC (not with a sole proprietorship). If this is a potential for you, contact your accountant to understand the differences.
Converting to an LLC from a Sole Proprietor at Beginning of Year Makes It a Little Easier
Start the New Year by Adding Personal Liability Protection
If you have been looking into converting your sole proprietorship to an LLC (limited Liability Company), there is no better time to do this than the end of the year or the very beginning of the next year.
This is because it makes the accounting must easier. You will not need to maintain accounting for two different businesses over one year. This also simplifies the tax reporting because you can have all your Scheduled business items on one schedule for the tax year.
In most states, you may be able to file and have an effective date of January 1st of the next year which is the best option because you will have your legal entity and more importantly liability protection in place starting with a beginning of year date.
It is always a good idea to start an LLC as soon as possible if you are running a sole proprietor business but if your decision is also coming up around the start of a new year, this is an even bigger reason to move forward.