payment methods for tenants
Member since 2023 · 124 posts · 132 votes
payment methods for tenants
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Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
1y@Brandon Morgan, nice to see someone from the same market here!
I do not accept cash app or zelle as those seem better suited for personal transactions than for something like rent payments.
I use apartments.com. It provides basically a tenant portal where you can upload copies of the lease, manage electronic payments, even do other things as well like maintenance requests.
Most tenants pay using secure ACH transfers from their account to mine. It takes a few days for the money to hit my account, but that is a small thing compared to the convenience. ACH transfers are free, but if a tenant wants to pay with a credit card they will get charged a fee. In addition tenants can choose to have their payments reported to a credit bureau to build their credit.
You can also set it up to automatically apply late fees which is nice.
Since its a portal for the tenant, both you and the tenant see a complete accounting of all payments made.
In addition you can use it to collect initial security deposits or to bill the tenant for addition items such as billed back utilities, damages, etc. So, if a tenant broke a window and it cost $300 to replace, you can simply add that bill in apartments.com and that way its all tracked where everyone can see it and track it.
19 Replies
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes1y
@Brandon Morgan, nice to see someone from the same market here!
I do not accept cash app or zelle as those seem better suited for personal transactions than for something like rent payments.
I use apartments.com. It provides basically a tenant portal where you can upload copies of the lease, manage electronic payments, even do other things as well like maintenance requests.
Most tenants pay using secure ACH transfers from their account to mine. It takes a few days for the money to hit my account, but that is a small thing compared to the convenience. ACH transfers are free, but if a tenant wants to pay with a credit card they will get charged a fee. In addition tenants can choose to have their payments reported to a credit bureau to build their credit.
You can also set it up to automatically apply late fees which is nice.
Since its a portal for the tenant, both you and the tenant see a complete accounting of all payments made.
In addition you can use it to collect initial security deposits or to bill the tenant for addition items such as billed back utilities, damages, etc. So, if a tenant broke a window and it cost $300 to replace, you can simply add that bill in apartments.com and that way its all tracked where everyone can see it and track it.
- Member since 2023 · 124 posts · 132 votes1y
Quote from @Kevin Sobilo:
@Brandon Morgan, nice to see someone from the same market here!
I do not accept cash app or zelle as those seem better suited for personal transactions than for something like rent payments.
I use apartments.com. It provides basically a tenant portal where you can upload copies of the lease, manage electronic payments, even do other things as well like maintenance requests.
Most tenants pay using secure ACH transfers from their account to mine. It takes a few days for the money to hit my account, but that is a small thing compared to the convenience. ACH transfers are free, but if a tenant wants to pay with a credit card they will get charged a fee. In addition tenants can choose to have their payments reported to a credit bureau to build their credit.
You can also set it up to automatically apply late fees which is nice.
Since its a portal for the tenant, both you and the tenant see a complete accounting of all payments made.
In addition you can use it to collect initial security deposits or to bill the tenant for addition items such as billed back utilities, damages, etc. So, if a tenant broke a window and it cost $300 to replace, you can simply add that bill in apartments.com and that way its all tracked where everyone can see it and track it.
that sounds helpful! I think I will try that!
- 1yAlecia LovelessPro MemberMember since 2019 · 3k+ posts · 2k+ votes
@Brandon Morgan I use CashApp, Venmo, and MetaPay. I tried using a landlord App and my tenants balked en masse about using an App that they did not already know or have.
I live in a rural market and this type of issue with technology may not be as big a factor in urban areas.
If you have a small number of rentals I would not over complicate things by paying a bunch of fees for an App if you don’t have to.
Unless you plan on scaling rapidly and just want to set things up a certain way starting out.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes1y
I recommend an electronic payment method. They are faster, won't get lost in the mail, and less likely to bounce.
You could have renters set up automatic payments from their bank to yours. Go to your bank and they can provide you with instructions. This method is simple, free, and fast.
You could also provide deposit slips, so tenants can deliver their payment directly to the bank.
The DIY Landlord Book4.7248 Reviews - 1yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
All of my landlords use Azibo and it comes out on auto. You definitely want a system that pulls from their bank account automatically and charges the late fee the same. A tenant doesn't choose how to pay, a landlord does. It's one thing that I don't think should be negotiable at all or collaborative. Using Zelle, CashApp, etc. makes your taxes harder and it's all not in a system.
Zen and the Art of Real Estate Investing59 Reviews - Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes1y
Quote from @Jonathan Greene:
All of my landlords use Azibo and it comes out on auto. You definitely want a system that pulls from their bank account automatically and charges the late fee the same. A tenant doesn't choose how to pay, a landlord does. It's one thing that I don't think should be negotiable at all or collaborative. Using Zelle, CashApp, etc. makes your taxes harder and it's all not in a system.
I agree, EXCEPT for the automatic payments.
For A/B class tenants that may be ok most of the time, but many tenants are paycheck to paycheck especially in cash-flowing markets. They may get paid on the 3rd and need to not initiate a payment until their paycheck hits their account to avoid being overdrawn.
I personally have a 5 day grace period and rent is considered paid when the transfer is initiated. So, if a tenant is paid on the 3rd or 4th and initiates payment on the 5th they do not incur a late fee.
- 1yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
Quote from @Kevin Sobilo:
Quote from @Jonathan Greene:
All of my landlords use Azibo and it comes out on auto. You definitely want a system that pulls from their bank account automatically and charges the late fee the same. A tenant doesn't choose how to pay, a landlord does. It's one thing that I don't think should be negotiable at all or collaborative. Using Zelle, CashApp, etc. makes your taxes harder and it's all not in a system.
I agree, EXCEPT for the automatic payments.
For A/B class tenants that may be ok most of the time, but many tenants are paycheck to paycheck especially in cash-flowing markets. They may get paid on the 3rd and need to not initiate a payment until their paycheck hits their account to avoid being overdrawn.
I personally have a 5 day grace period and rent is considered paid when the transfer is initiated. So, if a tenant is paid on the 3rd or 4th and initiates payment on the 5th they do not incur a late fee.
That is a good point. I would say C- and below you have to give on that more, but I would try to keep it at C on automatic. But yeah, definitely not as fine a line as your rent goes lower and tenancies harder. Thanks for adding that.
Zen and the Art of Real Estate Investing59 Reviews - Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes1y
Quote from @Jonathan Greene:
Quote from @Kevin Sobilo:
Quote from @Jonathan Greene:
All of my landlords use Azibo and it comes out on auto. You definitely want a system that pulls from their bank account automatically and charges the late fee the same. A tenant doesn't choose how to pay, a landlord does. It's one thing that I don't think should be negotiable at all or collaborative. Using Zelle, CashApp, etc. makes your taxes harder and it's all not in a system.
I agree, EXCEPT for the automatic payments.
For A/B class tenants that may be ok most of the time, but many tenants are paycheck to paycheck especially in cash-flowing markets. They may get paid on the 3rd and need to not initiate a payment until their paycheck hits their account to avoid being overdrawn.
I personally have a 5 day grace period and rent is considered paid when the transfer is initiated. So, if a tenant is paid on the 3rd or 4th and initiates payment on the 5th they do not incur a late fee.
That is a good point. I would say C- and below you have to give on that more, but I would try to keep it at C on automatic. But yeah, definitely not as fine a line as your rent goes lower and tenancies harder. Thanks for adding that.
I think that is VERY VERY market dependent. I suspect you are in a much more affluent market than I am. I'm sure in markets that differ from mine that people will have very different experiences.
I'm in a VERY blue color cash-flowing market. My B class single family rentals have working class people in them mostly and only a small portion would be comfortable with automatic payments for something that large. It's not a small bill like planet fitness after all.
Also, there really isn't any great advantage to automatic payments from my experience. I send reminder messages to anyone who hasn't initiated payment by the 1st. So, it isn't like they can "forget" anyways.
If they have the money they pay. if they don't have the money an automatic payment fails and probably charges them an overdraw fee making them a little LESS able to pay you.
- 1yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
Quote from @Kevin Sobilo:
Quote from @Jonathan Greene:
Quote from @Kevin Sobilo:
Quote from @Jonathan Greene:
All of my landlords use Azibo and it comes out on auto. You definitely want a system that pulls from their bank account automatically and charges the late fee the same. A tenant doesn't choose how to pay, a landlord does. It's one thing that I don't think should be negotiable at all or collaborative. Using Zelle, CashApp, etc. makes your taxes harder and it's all not in a system.
I agree, EXCEPT for the automatic payments.
For A/B class tenants that may be ok most of the time, but many tenants are paycheck to paycheck especially in cash-flowing markets. They may get paid on the 3rd and need to not initiate a payment until their paycheck hits their account to avoid being overdrawn.
I personally have a 5 day grace period and rent is considered paid when the transfer is initiated. So, if a tenant is paid on the 3rd or 4th and initiates payment on the 5th they do not incur a late fee.
That is a good point. I would say C- and below you have to give on that more, but I would try to keep it at C on automatic. But yeah, definitely not as fine a line as your rent goes lower and tenancies harder. Thanks for adding that.
I think that is VERY VERY market dependent. I suspect you are in a much more affluent market than I am. I'm sure in markets that differ from mine that people will have very different experiences.
I'm in a VERY blue color cash-flowing market. My B class single family rentals have working class people in them mostly and only a small portion would be comfortable with automatic payments for something that large. It's not a small bill like planet fitness after all.
Also, there really isn't any great advantage to automatic payments from my experience. I send reminder messages to anyone who hasn't initiated payment by the 1st. So, it isn't like they can "forget" anyways.
If they have the money they pay. if they don't have the money an automatic payment fails and probably charges them an overdraw fee making them a little LESS able to pay you.
If you know your tenant base like you do, then you know which works for them. What you are saying makes a lot of sense. I make the points more for new landlords because they don't know how to be a landlord yet and are more likely to not get rent on time because they don't have processes. All good points.
Zen and the Art of Real Estate Investing59 Reviews - 1yJohn MorganPro MemberRental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
@Brandon Morgan
I self manage my 29 SFR and run into this all the time. I've been slowly moving all my renters over to apartments.com to keep track of all these payments easier.
Been there done that with tenants like yours. I would give them a 3 day pay or quit notice. Tell them you’ll cancel your court date if they pay you the rest by the court date. Otherwise these people will own you.
- Member since 2023 · 124 posts · 132 votes1y
Quote from @John Morgan:
@Brandon Morgan
I self manage my 29 SFR and run into this all the time. I've been slowly moving all my renters over to apartments.com to keep track of all these payments easier.
Been there done that with tenants like yours. I would give them a 3 day pay or quit notice. Tell them you’ll cancel your court date if they pay you the rest by the court date. Otherwise these people will own you.
yeah I think I will move to apartments.com it seems useful and organized.
- Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes1y
I used to accept cash back in they day from the hood. I know, not the greatest idea. Now, I do zelle or they directly drop it in Navy Federal.
- Member since 2024 · 52 posts · 25 votes1y
Quote from @Brandon Morgan:
Hi all i just recently bought my first rental property and finally have it all rented out! i was wondering what other people use for payment methods. I been using cash app and zelle that art connected to my business checking account. only issue is one of the tenants has been paying weekly but had a death in a family and now has not paid in several weeks. I charged a late fee and told them to just pay the lump sum for the month from now on. I really hope this does not continue to be an issue. hopefully it doesn't escalate where I have to evict.
Congrats on your first rental! Cash App and Zelle are convenient, but you might consider using platforms like PayPal, Venmo, or property management software (e.g., Rentec Direct or Buildium) for easier management and automated payments.
For the tenant who’s behind, it’s good you’ve set new terms. If the issue continues, consider offering a formal payment plan or seeking legal advice. Keep records of all communication, and be prepared to take further steps if necessary. Hopefully, it doesn’t escalate!
- 1yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Whatever works!
Yes, having tenants pay ACH via a Tenant Portal software is best, but not all will cooperate and some will play games that result in NSF charges.
We allow tenants to deposit cash/check/money order directly at our bank into our account.
Many Class C & D tenants have challenges adapting to unfamiliar ways to pay and is often not worth the hassle (and possible evictions) to get them to change:(
Logical Property Management4.9451 Reviews - Real Estate Agent · Long Island · Member since 2018 · 88 posts · 38 votes1y
Hi Brandon, welcome to the Wilkes Barre Scranton market! We utilize Buildium which seems to pretty organized and easy for our tenants pay their rent through. Sorry to hear that your tenant went through that. That is never easy.
- Investor · Austin, TX · Member since 2021 · 17 posts · 17 votes1y
Congrats on the property and tenants! Landlording is an exciting (and sometimes tough) journey to embark on.
My biggest piece of advice is the early you start treating it like a business, the faster and more smoothly you will be able to scale.
I would highly recommend moving your tenants to a PM software where you can screen tenants, collect rent, etc.
Using venmo/zelle/cash app can get dicey. I personally really like Baselane. Baselane can also be your banking platform, bookkeeping, and property management. It is extremely convenient to have them all in one.
That is unfortunate to hear about the tenant who is behind, but I think the post from John Morgan said it best. It can be easy to want to be compassionate, but I'd refer back to your lease and handle it asap. - Investor · Prescott Valley, AZ · Member since 2017 · 27 posts · 13 votes1y
Apartments.com is a great idea! I've hear some others using RentRedi to handle rents and maintenance requests.
- 1moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
We have tenants use our online ACH system, pay via Venmo, direct deposit to our bank and we accept mailed checks.
Whatever you decide to use, just understand any potential risks!
Venmo and other online apps allow payment challenges, which tenants can play games with.
Logical Property Management4.9451 Reviews
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