Looking for opinion of the best online resource to collect money from your tenants. I've narrowed it down to;
Any insight/ experience appreciated.
Bump for the west coasters getting out of bed, or anyone else who wants to post :-)
Hi, James. I'm in the middle of trying to figure out some new options for sending and receiving monthly rents electronically. I agree, online is the way to go! I have a couple of units who direct deposit to our rental bank account, but I'm not the biggest fan of continuing to give out the account number in order to make this happen (my bank doesn't offer Deposit Only cards, bummer).
So...here are my research results so far...
PAYPAL - I did a $10 test with PayPal today...expensive! We had a debit card pay $10 to me and, by the time the money reached me in my PayPal account (which was almost immediately), nearly 6% was charged, so I only received $9.41. Imagine how much that would cost our rental business if I were to collect a full month's rent from PayPal, yikes! If someone knows of a trick to make PayPal transfer funds for free, please chime in because I would love to make it a viable option.
VENMO - I also did a $5 test with Venmo today...free! Again, we used a debit card, this time to pay the $5. By the time the money reached my Venmo account (almost immediately), the full $5 appeared. I am now in the process of sending that full $5 to my bank account to validate that the full amount will hit without any fees. The Help link says the daily limit to send/receive in Venmo and to your bank account is $2,999 and $3,000 respectfully, which meets my needs. The Help also insists there are no fees for requesting or paying monies via Venmo. I don't quite understand how they make their money, though. If someone knows of anything I'm missing here, please let me know.
DWOLLA - Your post is the first I've heard of Dwolla. I'll have to check it out. Would love to hear from anyone who has already given it a try.
I recently started using eRentpayment (the owner is a BPer). It's $3 per transaction (don't do small transactions - only use for rent and security deposits). You can elect to have tenant pay, you pay, or even split the fee I think. Also, they can send reminders and late notices for you - no additional fee for that. They allow manual and scheduled payments.
I've been using it since May - no problems. BUT - Money does not move instantly - it takes 3-5 days from the electronic payment date for the rent to hit my bank. So don't try to time your mortgage and bill payments precisely around it.
Mary Ann Casey I quite like Venmo for a lot of different reasons. You gave a fairly good run down of it. They make money because a lot of people don't immediately move money from he app into their bank accounts. Venmo basically takes that money and more or less collects interest on it while you have it sitting with them. I personally only have a $10 balance with them, but that is still $10 that they can have control of that I can't spend from my bank account.
I like that you can choose to deposit it into your account at any time and that a tenant can pay you immediately from anywhere.