How to Make Handling Your Entire House's Rent Easy
Okay, January got crazy.
Why? Mostly because I took over the $4,250 rent deposit for my house. Here’s what went wrong and how I’m making things better.
I like to upkeep a solid relationship with my landlord. So I dropped off the check 5 days before the end of the month with a future date on it (2/1/2016).
That happened without any issues and the landlord appreciated the early drop off.
My next step was to make sure I had the entire rent money available in the check’s related account by the first of the month.
To make sure the money was ready to be deposited (liquid), I had my awesome housemates send their portion of the rent to me via Square Cash.
Square Cash deposits almost every payment from my friends instantly in my bank account. Everything went through swiftly, and ahhh… and I was good to go.
Not so fast!
Later that day I logged in to mint.com and took a look at my checking account balance.
The number my checking balance was showing was of absolutely no help to me!
It was inflated with my housemates rent payments and both a $700 and $250 credit card bill.
I was looking at a $5,600 balance. $4,250 of that wasn’t mine (rent), and $950 of it wasn’t mine either (credit card bill).
I have $400 personally, but I’m staring at $5,600. WTF?
I went 7 days having pretty much zero idea of what was mine in my checking account. No thank you.
So here’s what I did.
To start I recognized this is a problem and that means it is time to learn, become crafty, and put together a solution. That is what life is all about! This is the hidden green. Dive in head first.
How could I get my house’s rent out of my personal checking account?
Could I open another checking account and use it just for my house’s rent?
So I gave my bank Ally a ring. A helpful person picked up and said I could create another account online. Once I put any amount of money of she told me they would send over the debit card and free checks. Awesome!
I created the new account and deposited $10 in literally 5 minutes. I nicknamed it “House Rent” so I know that’s the one.
The checks and debit card are on their way right now.
So come the last week of this month I will drop off a future dated check from the House Rent account a few days early.
Then I’ll set up a Square Cash account with the new debit card under a Cashtag name like “$Beachshack”. This way all my housemates can just go to cash.me/$beachshack, add their rent amount, and click send. Done. Rent paid. Easy.
As for paying my rent? I simply transfer my rent money over to the House Rent account as well.
After that happens the new account will fill up and be ready for the check to go through.
I’ll probably also add and keep an extra $50 in the House Rent account on the off chance anything different happens in there.
No inflated numbers. No misunderstanding of what amount of money I actually have. And ease in my financial mind. Feels great!