received a notice that tenant trying to send rent so an App

Rental Property Investor · NJ · Member since 2019 · 442 posts · 40 votes

HI, I received message a few days ago that my tenant is sending me money through RENT APP, I have no clue what this app is, is it legit?, what are the pros and cons? Would like to know if I should sign up to accept the money, and I believe I will need to link my bank account. would appreciate input if you know about this app.

also my tenant claims it helps build his credit, I am not sure how, but it says he will be paying there $800 monthly, while his rent is $1200

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Rene HosmanPro Member

Rental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes

Quote from @Sami Gren:

also my tenant claims it helps build his credit, I am not sure how, but it says he will be paying there $800 monthly, while his rent is $1200

First, I wouldn't accept partial payments ever. Paid in full always.

Second, as others have mentioned your lease should likely state acceptable forms of payment. You're not required to accept payment via this app.

Third, If you want to offer an alternative (which you're not required to) - If you have a PM plaform like Baselane or RentRedi (free for BP Pro members) you can offer credit boosting for tenants that pay on time. There is a monthly fee associated for this but if the tenant is serious you can offer it to them at cost. All this does is report their payments to the credit bureaus like how your credit cards or car loan company reports payments to the bureaus.

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Charles Carillo
Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
1y
@Sami Gren
Did the tenant discuss this with you or ask you beforehand? I would not be rushed into using it. I would request they pay rent the usual way, and then you can decide whether or not you want to utilize the app in the future.
1 Reply
Nick Rutkowski
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
1y
@Sami Gren you don't have to accept that app as a form of payment if your uncomfortable using it. The second red flag is he's trying to build his credit back up. Is this a new tenant you put in or did you inherit this one? How come he isn't paying the full amount? He seems too fishy to me.
1 Reply
Adrian Lammersdorf-SciollBusiness Member
Realtor · FL · Member since 2020 · 227 posts · 101 votes
1y
Send him your lease with the options of payment from the lease on it. Most standard leases have check, or cash as options as a default so tell him that's his only options if he doesn't want to pay that way then he has to move on with a loss of his deposit. Sounds like a scammer I would get him out of there asap.
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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
1y
Sorry, no can do…

For all you know the “rent app” sides with tenants. They can say you failed to make a repair and wish to withhold ent to get previous rent returned.
.
I’ve been exclusively EFT for years. The money is deposited in the 1st even, if it’s a Sunday or a holiday, it can’t bounce, and it can’t be taken back.
.
There have been so many changes to make people with bad credit look good they should be fine without this change.
0 Reply
Sami Gren
OP
Rental Property Investor · NJ · Member since 2019 · 442 posts · 40 votes
1y
Quote from @Charles Carillo:

@Sami Gren
Did the tenant discuss this with you or ask you beforehand? I would not be rushed into using it. I would request they pay rent the usual way, and then you can decide whether or not you want to utilize the app in the future.

Right, and that's why I am doing my due diligence now and asking if someone is familiar with it
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Sami Gren
OP
Rental Property Investor · NJ · Member since 2019 · 442 posts · 40 votes
1y
Quote from @Bill B.:

Sorry, no can do…

For all you know the “rent app” sides with tenants. They can say you failed to make a repair and wish to withhold ent to get previous rent returned.
.
I’ve been exclusively EFT for years. The money is deposited in the 1st even, if it’s a Sunday or a holiday, it can’t bounce, and it can’t be taken back.
.
There have been so many changes to make people with bad credit look good they should be fine without this change.

They can decide whether the tenant is required to pay?
and by the way Rent App is the Name of the app
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Alecia LovelessPro Member
Member since 2019 · 3k+ posts · 2k+ votes
1y
@Sami Gren I would not recommend accepting rent through a random App that you did not set up yourself.
That being said I do accept rent from all the major electronic services. My philosophy is the first time a tenant claws back a payment I will evict them. So far it hasn’t been a problem.
It’s also a red flag to me that they only want to pay $800 of the $1200. You definitely need to ask where the other $400 comes from.
And I have tenants that make multiple small payments every month because after they’ve moved in they’ve had their finances screwed up from what they were when I screened them. And I can tell you that as the months go by and you’re receiving multiple payments it starts to get confusing as to what payment goes with which month and if they’re even ever paying the full amount. Maybe this won’t be a problem if you’ve got just 1 unit but I’ve now got 4 tenants paying $200-$400 multiple times per month and it gets confusing.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
I agree with the others.
You should dictate how rent is paid. If you aren't familiar with a particular app, don't accept it. Contact the tenant, remind him how rent is to be paid, and require him to follow those rules.
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Rene HosmanPro Member
Rental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes
1y
Quote from @Sami Gren:

HI, I received message a few days ago that my tenant is sending me money through RENT APP, I have no clue what this app is, is it legit?, what are the pros and cons? Would like to know if I should sign up to accept the money, and I believe I will need to link my bank account. would appreciate input if you know about this app.
also my tenant claims it helps build his credit, I am not sure how, but it says he will be paying there $800 monthly, while his rent is $1200

First, I wouldn't accept partial payments ever. Paid in full always.
Second, as others have mentioned your lease should likely state acceptable forms of payment. You're not required to accept payment via this app.
Third, If you want to offer an alternative (which you're not required to) - If you have a PM plaform like Baselane or RentRedi (free for BP Pro members) you can offer credit boosting for tenants that pay on time. There is a monthly fee associated for this but if the tenant is serious you can offer it to them at cost. All this does is report their payments to the credit bureaus like how your credit cards or car loan company reports payments to the bureaus.
5 Reply
Dominic M.
Property Manager · Northern Virginia & DC · Member since 2020 · 157 posts · 69 votes
1y
Read and follow your lease, don't allow your tenant to dictate terms.
1 Reply
Sami Gren
OP
Rental Property Investor · NJ · Member since 2019 · 442 posts · 40 votes
1y
Quote from @Rene Hosman:

Quote from @Sami Gren:

HI, I received message a few days ago that my tenant is sending me money through RENT APP, I have no clue what this app is, is it legit?, what are the pros and cons? Would like to know if I should sign up to accept the money, and I believe I will need to link my bank account. would appreciate input if you know about this app.
also my tenant claims it helps build his credit, I am not sure how, but it says he will be paying there $800 monthly, while his rent is $1200

First, I wouldn't accept partial payments ever. Paid in full always.
Second, as others have mentioned your lease should likely state acceptable forms of payment. You're not required to accept payment via this app.
Third, If you want to offer an alternative (which you're not required to) - If you have a PM plaform like Baselane or RentRedi (free for BP Pro members) you can offer credit boosting for tenants that pay on time. There is a monthly fee associated for this but if the tenant is serious you can offer it to them at cost. All this does is report their payments to the credit bureaus like how your credit cards or car loan company reports payments to the bureaus.

Thank you,
from all the replies this was helpful, I was not aware that there are ways I can help them build their credit, would you mind elaborating on how it works?
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- Rene HosmanPro Member
  Rental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes
  1y
  @Sami Gren Happy to help! What if any property management software are you using right now? And are you using that software to collect rent?
  
  For example I use RentRedi and offer that as one of the options for my tenants to pay rent. Do you offer anything like that currently?
  0 Reply
Sami Gren
OP
Rental Property Investor · NJ · Member since 2019 · 442 posts · 40 votes
1y
Quote from @Rene Hosman:

@Sami Gren Happy to help! What if any property management software are you using right now? And are you using that software to collect rent?

For example I use RentRedi and offer that as one of the options for my tenants to pay rent. Do you offer anything like that currently?

NO, I dont
0 Reply
Adrian Lammersdorf-SciollBusiness Member
Realtor · FL · Member since 2020 · 227 posts · 101 votes
1y
Quote from @Rene Hosman:

@Sami Gren Happy to help! What if any property management software are you using right now? And are you using that software to collect rent?

For example I use RentRedi and offer that as one of the options for my tenants to pay rent. Do you offer anything like that currently?

I second this, I use rentredi for my personal properties and it makes life super easy. They can pay for the credit boost as well
[email protected]561-305-2404
Thomas Lynne Realty527 Reviews
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2 Reply
Sami Gren
OP
Rental Property Investor · NJ · Member since 2019 · 442 posts · 40 votes
1y
Quote from @Adrian Lammersdorf-Scioll:

Quote from @Rene Hosman:

@Sami Gren Happy to help! What if any property management software are you using right now? And are you using that software to collect rent?

For example I use RentRedi and offer that as one of the options for my tenants to pay rent. Do you offer anything like that currently?

I second this, I use rentredi for my personal properties and it makes life super easy. They can pay for the credit boost as well

Thank you!
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
@Sami GrenHow much research did you do?
Here's link: https://rent.app/landlord
Appears they are a type of payday advance lender for rent payments.
Seeing more & more of this on banks statements for rental applciations, so predicting we'll all be accepting rent from them eventually for Class C & D tenants that can't seem to get out of their paycheck-to-paycheck cycles.
[email protected]248-209-6824
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Mike Levene
Member since 2023 · 30 posts · 25 votes
1y
As the landlord, you can dictate how you collect rent. Typically this is outlined in your lease. I would strongly advise against using an app that the tenant picked, especially considering they are only willing to make partial payments.

I use a trusted property management tool to collect rent and I never allow partial payments. Either the tenant pays in full on time, or it is late and late fees apply. This also helps down the road in case you ever need to do an eviction.

Using a trusted tool to collect rent can help automate the rent collection and ease the burden on both the landlord and the tenant. From the landlord perspective, you set up the rent amount, the due date, and then the tool will send automatic reminders to the tenant ahead of each due date. If payment is late, it will automatically apply the late fee structure you have set up.

From the tenant side, they will get reminders that their rent is coming due with a link to pay rent. They can pay with debit/credit card, or link their bank account and do ACH. If the tenant has already made payments in the past, this can be as simple as just 2-3 clicks.

With a tool like this, you don't need to manually follow up with tenants, collect checks and hope they don't bounce, show up to your property to collect cash, etc. It also helps you keep a very clear trail of when rent was paid, if it was paid on time, and track the history of payments.

Lastly these tools can integrate directly into your bookkeeping so you can automate the income portion of your bookkeeping which will help with your analytics/reporting and save you tons of time during tax season.
1 Reply
Melanie Lovejoy
Investor · Austin, TX · Member since 2021 · 17 posts · 17 votes
1y
Interesting! I haven't ever heard of this but would automatically deny it until further discussions have been had.
I have in my lease what forms of payment are acceptable. Do you have this included?
Like others have mentioned there are platforms that help renters to build credit which is really great. Baselane has this feature at a super low cost and it can be paid for by either the tenant or landlord.
2 Reply
Ify (Bobby) Anizoba
Specialist · Atlanta Metro Area, GA · Member since 2020 · 38 posts · 23 votes
1y
There are various applications that allow landlords to collect rent, manage payments, and disburse funds. These platforms can streamline the rental payment process, providing convenience for both landlords and tenants.

For you as a landlord, such an app could offer features like automated payments, tracking rent history, and direct bank transfers. However, it may require you to sign up and link your bank account, so itâ€™s essential to verify the appâ€™s legitimacy, security, and any associated fees before proceeding.

Your tenant mentioned that the app helps build their credit, which is a feature some rent payment platforms offer. They typically report rent payments to credit bureaus, helping tenants improve their credit scores. However, the fact that your tenant intends to pay $800 through the app while their rent is $1,200 raises questions, it’s worth clarifying whether they plan to pay the remaining $400 separately and how that affects both of you.

Before signing up, consider reviewing the appâ€™s terms, checking online reviews, and confirming how quickly payments are processed to your account. If you have any concerns, you may also discuss alternative payment options with your tenant.

1 Reply
- Sami Gren
  OP
  Rental Property Investor · NJ · Member since 2019 · 442 posts · 40 votes
  1y
  Quote from @Ify (Bobby) Anizoba:
  
  There are various applications that allow landlords to collect rent, manage payments, and disburse funds. These platforms can streamline the rental payment process, providing convenience for both landlords and tenants.
  
  For you as a landlord, such an app could offer features like automated payments, tracking rent history, and direct bank transfers. However, it may require you to sign up and link your bank account, so itâ€™s essential to verify the appâ€™s legitimacy, security, and any associated fees before proceeding.
  
  Your tenant mentioned that the app helps build their credit, which is a feature some rent payment platforms offer. They typically report rent payments to credit bureaus, helping tenants improve their credit scores. However, the fact that your tenant intends to pay $800 through the app while their rent is $1,200 raises questions, it’s worth clarifying whether they plan to pay the remaining $400 separately and how that affects both of you.
  
  Before signing up, consider reviewing the appâ€™s terms, checking online reviews, and confirming how quickly payments are processed to your account. If you have any concerns, you may also discuss alternative payment options with your tenant.
  
  its not that he didn't pay the other portion, he paid that! he just tried to send the partial payment through that app.
  I was just wondering how these platforms verify the rent amount, to be able to report as their rent fully paid
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