We have a small rural branch that has been allowing people to bring in their rent payments for area landlords and make the rent payment at the bank.

They are giving receipts to the renters and then depositing the money (mostly cash) into the landlords accounts. We have NO agreements in place with these landlords. The branch has been doing this FOREVER (we acquired them 4 years ago). Anyway...I told them to discontinue the practice. We are not a payment center and why assume the responsibility for accepting payments/rent on behalf of the landlord.

Evidently there have been a couple of people who have claimed they made their rent payments at the bank and didn't get a receipt and the landlord has not received credit. So far....we have not suffered any loss...We have been able to discover the renter never made the deposit.

With all the talk about beneficiary interest in accounts....the risk in assuming the liability for accepting the rent payment (I think this should be between the renter and landlord) the practice should be discontinued.

The branch is concerned for backlash from the landlords. Do other banks do this regularly?

Absolutely not. Some banks might have lockboxes where rents are mailed in and handled, but these would be checks/money orders, not cash. And there are agreements and fees because it is laborious.

tell them if they want you to be treated as a property management office you expect to be compensated as one, with one months rent being the annual fee...

Dunno.

"We've always done it" is the headstone that goes above some of the dumbest practices in banking.