Rent.app / Split Pay - is there a benefit to landlords
Lehigh Valley, PA · Member since 2017 · 6 posts · 1 vote
Rent.app / Split Pay - is there a benefit to landlords
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11 Replies
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes6mo
@Joseph Cutrona, a few thoughts:
1. What does the payment method have to do with timely payments? If the tenant paid in cash and was late, would you want to stop accepting cash?!?
2. I use a similar service that is FREE (apartments.com). It provides a tenant portal and allows the tenant to make secure ACH transfers from their account to mine. However, from the time they click "send" to the time I receive the money might be 3-5 days maybe. I believe they make their money by having a hold of the money in transit for a short time.
3. I use the date they initiate payment as the payment date. So, if they initiate payment before rent is late, but I don't receive it until after the lateness date, they are on time.
No reason to get hung up on small silly nonsense. If they paid you with a check, you would need to deposit the check and it might not be immediately available either and might not be available until after the grace period even with a timely payment.
4. These services provide a detailed accounting of all monies charges and all monies paid which is very helpful for EVERYONE!
If you need to bill the tenant back for maybe a municipal fine they incurred or for a utility bill or damage you simply add the bill to the platform. It is tracked for all time. You can also generally make notes to make clear what each of those things was for.
5. If tenant's pay you in another way one month. For example if they give you cash or a money order, you can document that in the platform as well.
6. These platforms usually will apply late fees automatically.
7. These platforms will usually remind the tenant to pay rent, notify then when late fees have been applied or any other changes.
8. Many of these platforms can also be used for tenants to submit maintenance requests.
9. As a tenant portal, I am also able to upload a copy of the signed lease since tenants often lose their copy.
10. So, no matter which platform you like, I see no downside in using one. I suggest find one you like and make all tenants use it.
- 6moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Joseph Cutrona:
Hi, I had a new tenant ask to send payment via Rent.App. Generally I don’t care as long as it’s sent in USD and on time.
From the tenants end, they were suggesting this as a means to be proactive and provide prompt payment. They mentioned local complexes were accepting payment. I reviewed the company’s website to make sure all basic security measures, etc were in place.
For the last two months payments have been late and exceeding the grace period as denoted in the lease.
I’m about ready to pull the plug on this, but wanted to check if there were any success stories with this service.
Not understanding how RentApp is causing the late payment?
FYI: for tenants that still insist on mailing their rent, our lease clearly states we will use the USPS Postmark date as "received date". If it's good enough for the IRS to use for tax filing, it should always stand up in court.
Logical Property Management4.9458 Reviews- Lehigh Valley, PA · Member since 2017 · 6 posts · 1 vote5mo
Quote from @Drew Sygit:
Quote from @Joseph Cutrona:
Hi, I had a new tenant ask to send payment via Rent.App. Generally I don’t care as long as it’s sent in USD and on time.
From the tenants end, they were suggesting this as a means to be proactive and provide prompt payment. They mentioned local complexes were accepting payment. I reviewed the company’s website to make sure all basic security measures, etc were in place.
For the last two months payments have been late and exceeding the grace period as denoted in the lease.
I’m about ready to pull the plug on this, but wanted to check if there were any success stories with this service.
Not understanding how RentApp is causing the late payment?
FYI: for tenants that still insist on mailing their rent, our lease clearly states we will use the USPS Postmark date as "received date". If it's good enough for the IRS to use for tax filing, it should always stand up in court.
That raises an interesting point - the IRS actually shortened their payment cycle by no longer accepting paper checks.
It’s due on the 15th. The feds have (electronic) cash in hand on the 15th.
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes5mo
Quote from @Joseph Cutrona:
Quote from @Drew Sygit:
Quote from @Joseph Cutrona:
Hi, I had a new tenant ask to send payment via Rent.App. Generally I don’t care as long as it’s sent in USD and on time.
From the tenants end, they were suggesting this as a means to be proactive and provide prompt payment. They mentioned local complexes were accepting payment. I reviewed the company’s website to make sure all basic security measures, etc were in place.
For the last two months payments have been late and exceeding the grace period as denoted in the lease.
I’m about ready to pull the plug on this, but wanted to check if there were any success stories with this service.
Not understanding how RentApp is causing the late payment?
FYI: for tenants that still insist on mailing their rent, our lease clearly states we will use the USPS Postmark date as "received date". If it's good enough for the IRS to use for tax filing, it should always stand up in court.
That raises an interesting point - the IRS actually shortened their payment cycle by no longer accepting paper checks.
It’s due on the 15th. The feds have (electronic) cash in hand on the 15th.
Not quite true, someday maybe. That is being phased in, but as with everything subject to change. For now that is not something that appears to be in place.
- Lehigh Valley, PA · Member since 2017 · 6 posts · 1 vote6mo
I suppose the important context is that for March, the tenant provided payment followng Rent.Apps normal SLA’s and payment was not received until 3/11.
If a check was written BofA typically clears it in 24-48 hours
If it were cash it would be a non-issue.
Venmo, Cash App, etc it would be received and transferred in 2-3 days.
Based on the replies thus far and considering I have less than 50 doors it may be worth sticking with the old school payment methods & the docusign knockoff we have for contract management. Just wanted to make sure I wasn’t missing something.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes6mo
Quote from @Joseph Cutrona:
I suppose the important context is that for March, the tenant provided payment followng Rent.Apps normal SLA’s and payment was not received until 3/11.
If a check was written BofA typically clears it in 24-48 hours
If it were cash it would be a non-issue.
Venmo, Cash App, etc it would be received and transferred in 2-3 days.
Based on the replies thus far and considering I have less than 50 doors it may be worth sticking with the old school payment methods & the docusign knockoff we have for contract management. Just wanted to make sure I wasn’t missing something.
There are plenty of online portals that cost nothing or minimal that you can use rather than just being old school with checks and cash. A couple of them have already been mentioned. Most of them that are free make their money on the float, meaning it's 4-7 business days from the day they make the transfer until the day it hits your bank account - but you still know within the first 1-2 days that the payment is going to clear. I use TurboTenant, which has its own weakness (you can't see payments scheduled until the new charges update in the portal, which is annoying) but if you are using their paid version (they have a free one) the transfer is 2-3 days. About 75% of our tenants use the online portal so it would be counterproductive to do away with it.
The bigger lesson is that your tenants shouldn't be dictating or even suggesting payment methods. You should be in charge of the system and the renters use it or they have to do the old school method(s) that you accept. The only way our tenants can pay cash, check or money order is to bring it to our business banking themselves - we don't accept anything in the mail and it is written into our leases how we will accept payment.
Skyline Properties - Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes5mo
Quote from @Joseph Cutrona:
I suppose the important context is that for March, the tenant provided payment followng Rent.Apps normal SLA’s and payment was not received until 3/11.
If a check was written BofA typically clears it in 24-48 hours
If it were cash it would be a non-issue.
Venmo, Cash App, etc it would be received and transferred in 2-3 days.
Based on the replies thus far and considering I have less than 50 doors it may be worth sticking with the old school payment methods & the docusign knockoff we have for contract management. Just wanted to make sure I wasn’t missing something.
1. I think you are hyper-focused on an edge case and blaming the platform for something that isn't abnormal or difficult to manage.
2. The best I can gather from your posts is that you probably have a grace period of maybe 5 days and that the tenant submitted payment on the 5th and it took til the 11th to clear in your account which is the LONGEST a payment has ever taken me on apartments.com
3. If that same tenant had mailed you a check on the 5th (postmarked the 5th within the grace period), you probably would have received it by the 9th and if you jumped right on it had it in your account cleared by the 12th LATER than the system you are upset about.
4. Tenants pay early, they pay within the grace period, they pay late. These platforms provide a LOT of good service that more than makes up for the VERY VERY minor inconvenience of waiting a couple "extra" days to receive the money.
5. In almost all cases I receive the money in 3-5 days from when the tenant initiates payment.
- Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes5mo
Rent is due when it is due. The landlord determines the method - not the tenant. We collect rents electronically using free payment systems so neither party incurs additional costs. I recommend advising the tenant that rent is due on the (1st). That's a period at the end of that sentence. And, remember this: According to the American Apartment Assn., the #1 reason that landlords fail is FAILURE to manage to the lease. You didn't prepare a lease and set the terms for entertainment purposes; the tenant does not get to adjust the terms. Pull the plug on the tenant's excuses. It's your ball, your court.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes5mo
@Patricia Steiner is correct. You need to learn how to say NO. In this business, the Customer is NOT always right. They signed an agreement, they need to meet their responsibility.
Also, if you are so focused on the time between Tenant "making" the payment, and actually receiving the funds, it sounds like you are operating on a shoestring. You should spend more time improving your screening process; the review and signing of documents with the Tenants; and a multitude of other processes that will actually contribute to a more profitable and less stressful operation.
- Lehigh Valley, PA · Member since 2017 · 6 posts · 1 vote5mo
Quote from @Richard F.:
@Patricia Steiner is correct. You need to learn how to say NO. In this business, the Customer is NOT always right. They signed an agreement, they need to meet their responsibility.
Also, if you are so focused on the time between Tenant "making" the payment, and actually receiving the funds, it sounds like you are operating on a shoestring. You should spend more time improving your screening process; the review and signing of documents with the Tenants; and a multitude of other processes that will actually contribute to a more profitable and less stressful operation.
All properties have been cash flow positive since day one for the last 13 years.
This is more a question of principle - why would I let a random platform dictate when I should receive payment that is due on the first and has a generous five day grace period. Additionally why would I allow a third party benefit from paying late.
The answer is I shouldn’t.
Good thing here is that this was a pilot. Under normal processes notice would be posted on the sixth day. Which provides ample time to cure while preserving our rights.
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