Best tenant payment options?

20 Replies

This may date me as my kids say I am too old school but since 2007 I have always had rent due on the 1st but not late if received by the 5th

I am having more and more tenants, especially college aged, asking me if I do direct bank deposit or Venmo, etc

My question is pretty simple, what do you all use to protect yourself, cost effective and secure?

I am getting old fashion checks, money grams, or cashiers checks. But, am I too old school with my check in the mailbox method?

Thanks for all your input. Time to grow at 52 years old !

I've been collecting rents for more than 50 years and I think the same way as you. 

It is much simpler to use paper deposit slips, vs. trying to find your tenant's deposits on the internet and then integrating those deposits with your accounting system. I don't like the idea that deposits can get lost in cyberspace. we have enough problems with accepting both checks and credit cards. 

Keep it simple. Too many methods of payment would be a nightmare. I have enough problems getting the total right for checks on deposit slips.

Checks
Cash
Credit Cards
Google Wallet
Paypal
Direct Deposits
Bitcoin
MovoCash
Electronic Checks


ACH payments are fantastic if you have the software integration. Tenant pays online, it's automatically logged into my software, and I don't have to do a thing.

If your software doesn't handle ACH, then the benefit is lessened because you'll still have to log the payments manually.

Personally, it's worth it to give your tenants every option to pay rent. If they're asking you for it, give it to them.

@Nathan G. Yeah, ACH is bank auto payment right?

Maybe giving my account and checking routing number is the easiest. I am just one guy and do not have fancy software programs. I just head to the bank on the 6th but would like to give at least one more options, not offer 5 plus as I have heard bigger companies offer.

There are plenty of online cloud based  property management platforms that integrate with QuickBooks and other accounting software that handle everything from leases to maintenance requests, payments etc. 

big thing to watch out for is fees when using payment portals.

ACH Bank drafts are free.

@Todd Powell What software are you currently using to manage your rentals? It would significantly simplify things if you were using a system like Cozy.co or TenantCloud.com. The software is ridiculously inexpensive and very robust. It allows you to track your properties, leases, maintenance, communication, and more. Tenants pay through the secure system and it's automatically logged. When a unit is vacant, you upload the pictures and details in the software, click a button, and it markets your rental to dozens of web sites. I think it costs around $10 a month for the service and is well worth it!

@Todd Powell We like to always have a way for tenants to pay online whether it’s through a tenant portal or other similar method. If we place the right tenants, they will always want to pay their rent so we need to be able to accept modern forms of payment because that will increase the likelihood that rent will be paid on time and help the tenants have a better experience living at our properties.

I have been slowing migrating my tenants to ACH and I wonder why I did not start sooner. It makes tracking rent payments much easier. An added bonus is no more lost rent checks or money orders. I use Rentler and have integrated with Quickbooks. I get notifications of payments and not having to do bank deposits saves time each month.  I highly recommend it if you have more than 5 units. 

@Nathan G. Great advice. I do not use any software at all. I self manage and run a tight ship. As a matter of fact, I do mostly one year leases and tend to get current tenants to show their properties prior to their move out and rarely have ANY vacancies! My turn around is all within days for each unit.

Bare minimum I need to do ACH

It will still help with tracking maintenance, tenant leases, documents, and other aspects. 

@Jack Orthman. Wow so many options

I have a lot of college campus close units. I hear VENMO is a great option. Have you heard of this ?

@Todd Powell ","user_avatar":{"medium":{"url":"https://assets1.biggerpockets.com/uploads/social_user/user_avatar/574827/big_1621492926-avatar-toddp18.jpg"}}}" href="/users/ToddP18">@Todd Powell I've heard of it but not familiar with it. I only know Cozy.co and TenantCloud because I investigated them for a friend.

@Todd Powell Venmo is an ‘instant’ cash transfer app. You can link it to a checking or savings account. You can send or receive email through cell#’s or email addresses which are used to identify accounts.

I’m not sure but I think it only supports on-demand transactions - I don’t think you can schedule payments (like auto-withdrawal from a bank).  So it might be convenient IF your tenants remember.  

Payments and receipts show up in your account as Venmo with the other person’s id- so they are identifiable.  

@Craig Fitzsimmons

I am the cozy site checking them out so a huge thank you ! Do you also feel confident in their rental background and screening checks ? I am currently using my SmartMove but I am leaning towards cozy now.

Thank you

@Nathan G. Cozy looks awesome ! Thanks. Its actually zero cost to the landlords. If their background checks are solid I will dump mysmartmove.com. You ever hear of them ?

I've been having a good time using Tellus App. It helps me handle posting listings, screening tenants, rent collection and financial tracking and their app is totally free. it's time to use software to manage your property, Todd! We need to use online rent collection to attract millenial renters. 

@Todd Powell

Venmo and cash app are awesome,

I collect all my rents via the 2 apps.

They are very easy to use, and no fees if you allow the funds 3-4 days to clear. You will pay a small fee for immediate access to funds

@Todd Powell I use Tellus app. My tenants especially the younger ones like doing it all in an app where they can get notifications. I also use it for chatting with tenants and expense tracking, document storage etc. it’s also using ACH and free for all parties. They figure out how to make payments go pretty fast. After a few months the payment hits my bank account in 2 days and more importantly I get an alert if rent is late.