How to collect Rent

Question

I finally secured my first duplex. Yes! I inherited a tenant who gets social security on to a government card. What’s the best and CHEAPEST way to collect rent? If he does not have a bank account? Everything goes to this prepaid card. Give me some tips on what might be the most cost effective and ease of use way to collect rent

Drew Sygit · Answer

How were they paying the previous landlord?

Do NOT be intimidated by the tenant wanting you to do things their way!

Funny story:

Took over management of a property and existing tenant was wheelchair-bound. They were on SSI, which was direct deposited to their bank.

Tenant refused to send us rent, claiming we HAD TO come pick up their rent in person as they had no way to go anywhere to pay us.

Our team does NOT pick up rent, so they were stumped.

I merely asked, "how is the tenant going to pay us at their home?"

Tenant's response was, "via money order".

I then asked. "how are they getting the money order?"

That showed the tenant had the ability to pay via our terms and we did NOT need to pick up the rent.

Joel Thomas · Answer

@Drew Sygit nice story, I'm going the Venmo route and I will see how it goes

Tabish Masood · Answer

Congratulations on the duplex!

If the tenant receives Social Security on a prepaid government card and doesn’t have a traditional bank account, I would focus on whatever method is easiest for them while still giving you a clear payment record.

A few options to consider:

• Money orders or cashier’s checks: Very common for tenants without bank accounts and easy to document.
• Cash deposits directly into your bank account: Some banks allow tenants to deposit cash into the landlord’s account, though policies vary.
• Walmart MoneyCenter or similar bill-pay services: Many tenants already use these services.
• Cash App or PayPal: Some prepaid cards work with these apps, although it’s worth confirming compatibility first.
• Rent collection platforms that accept debit cards: Some property management apps allow tenants to pay with a debit card, but transaction fees may apply.

Since this is an inherited tenant, I’d start by asking what method they’ve been using successfully. If the current system has worked and payments have been consistent, there may not be a reason to change it immediately.

Whatever method you choose, make sure you provide receipts and keep a written record of every payment. The cheapest option isn’t always the best if it creates confusion or poor documentation later.

Jimmy Lieu · Answer

Great question, Joel, and congrats on your first duplex! If your tenant is getting paid on a prepaid debit card, I'd first see if they can use it to make payments through a service like Zelle, Cash App, or another rent payment platform, since many prepaid cards support those. If that's not an option, money orders are still a simple and inexpensive backup, even though they're a little less convenient. Whatever method you choose, I'd try to keep it consistent and document every payment with receipts or a ledger. Making it easy for the tenant while keeping good records for yourself usually leads to the fewest headaches. Happy to connect and answer any questions you have!

John Morgan · Answer

They can move their money from their card to Cash App, Venmo, chime, PayPal, Apple Pay etc. So I'll take payment with any of these methods. Or even a cashiers check one guy mails me.

I also had someone like this that didn't have a bank account or even an email. She paid me with her netspend card every month. It was loaded onto my netspend Visa card and I used it like a debit card or transfered it to my bank from my card.