What is your preferred way to collect rent?

Question

What forms of payment do you accept from tenants?

Collecting rent is something we don't talk about much unless it's not happening but I wanted to start a conversation about what methods of payments you accept and why. Options like our partner Baeslane’s free online rent collection platforms, payment apps, and ACH transfers are convenient for both parties, but traditional methods like checks or cash are still widely used.

I’d love to hear about your experiences:

• What rent collection method do you prefer and why?
• Do you think certain methods help reduce late payments?
• Have you tried different late fee structures or flex rent (allow tenants to pay weekly or biweekly instead of monthly)?

I'll start: I use an online rent collection platform that allows tenants to schedule auto-pay via ACH transfer, or my tenants can drop a check off directly at my bank. I don't accept venmo, paypal, or zelle because of the fees and having to set up a business account. I like the auto-pay option as I get a notification when rent is paid and when the deposit has hit my account. I only allow tenants to pay on the 1st of the month but I would consider alternate payment schedules dependent on the situation and tenant if they asked. My rentals are in Denver which has strict late payment laws and I was able to customize the late payment options to automatically apply in the right timeframe to abide by the laws and also not accept partial payments which I very much appreciate.

And if you’re curious about Baselane’s 2-day quick pay features or have questions, feel free to ask!

Kevin Sobilo · Answer

@Rene Hosman, I'm firmly in the online platform camp for preference.

I actually have a fee in my lease if a tenant wants me to physically pick up a payment. I will still accept other forms of payment but the convenience of the online platform and the fee for pickup dissuades them from anything else most times.

For me rent is due on the 1st with a 5 day grace period. Rent is "paid" when they initiate transfer not when it hits my account because they have no control over the lag time. Much like a mailed check/money order is "paid" when it is post marked as it isn't the tenant fault if 1st class mail takes 3 weeks (which actually happens sometimes!).

Late fees are automatically applied after the grace period but a tenant can make a full or partial payment any time. Some are paying early. I had a tenant pay January's rent on December 21st and obviously tenant's sometimes pay late or not in full. The online platform is ideal for tracking all of that and more.

Nathan Gesner · Answer

Exactly. When a lot of tenants are involved, you want to provide as many options as possible.

Drew Sygit · Answer

We give our tenants as many options as possible - EXCEPT picking up their rent.

JD Martin · Answer

Online platform or the tenant schleps off to our business bank account and makes the deposit. No other methods of payment accepted, written into the lease. This is a business, not some mob collection system. Someone wants to pay cash they go to the bank and pay cash, and get their own receipt. Otherwise they pay free online. 95% of our tenants pay online, most of those with auto pay. The bank people are either the least stable or get paid irregular.

We use Turbotenant and used Apartments for years before that and a different one before that, that apartments bought out. In rare instances we will let someone pay through Square or Stripe, with them paying the cc fee, but only in unusual cases, such as one time with a tenant who was traveling and didn't have a bank account to use with our online platform.

Clint Bolton · Answer

Definitely online via property management software! There's tons of options and even free options for landlords. 95+% of ours pay online and we have 3 tenants that drop payments off at our office. If it's not in our hands by the due date it's late and late fees begin. They are able to make as many payments as they'd like throughout the month if that's better for them but they will need to make their payments for the current month in the previous month so that their balance is paid in full by the due date. We have several that pay weekly but they start the first week of the month paying 1/4 of the next months rent and by the time they make that 4th payment for the month they've paid the upcoming month in advance. They can pay however they'd like as long as the balance is paid in full by the due date. We have numerous who have their payments set up to auto-pay. We've considered offering a discount for doing so but so far we haven't because for the most part everyone pays on time with no issues. Our last 15+ tenants that we've placed we've required online payments. It's just much easier for everyone, including the tenant.

Jake Baker · Answer

@Rene Hosman

Rent.App is an awesome free solution that I recently discovered.

Adam Bartomeo · Answer

Ours tenants mostly pay online, 93%, by ACH, debit, and credit card. We still accept MO's, checks, and cash. We NEVER pick up rent from a tenant and do not need an excuse to visit the property.

Nathan Gesner · Answer

How do I like tenants to pay rent? On time, every time. ;)

Preference is electronic transfer through my management software. However, I also have ways for them to pay with cash, card, money order, cashiers check, and personal check. They can bring payments to the office or send by mail, but anything mailed is not considered paid until it's in my hands. If USPS is slow, tenant is subject to late fees and even eviction.

Wesley W. · Answer

But alas, some tenants use this trick after they have vacated your property. Pretty neat, eh? Search the forums here for these kinds of stories from landlords. Those that still reside are not expecting to stay anyways. In both cases, you are left holding the proverbial bag.

Alecia Loveless · Answer

@Rene Hosman I prefer electronic payment.

I use the major platforms, CashApp, Meta, Venmo, Zelle. I simply take the 2-3 day no-fee transfer from these platforms.

I have not had an issue with the claw back scenario and if I did I would IMMEDIATELY begin the eviction process which I would then pursue relentlessly.

I also accept checks but generally my tenants don’t mail these until the 3rd or 4th which typically means I don’t receive them until the 7th-8th.

I did try to set up a property management software for collections but as I live in a rural area received a TON of pushback from my tenants about sending money over an App they were not familiar with. So for now have abandoned the idea.

What is your preferred way to collect rent?

What is your preferred way to collect rent?

Most Popular Reply

12 Replies