Best Online Payment for tenants

17 Replies

Just purchased my first 5-plex in Cincinnati.  What is the best but most economical online payment service for tenants? Appfolio looks great and is what I will use one day.  Just don't think it makes sense to use for my first building. Thanks for your input BP community! 

Many people today are familiar with "bill pay" at their bank. Your tenant will need your bank's routing number and account number and the tenant sets up a bill pay option with their own bank.

If you are worried about them having your bank account, set up a "sweep" account. A sweep of all the money in the account occurres at a particular time daily or on particular days. The money is swept out of the deposit account and placed into a different account of your choice to keep anything fraudulent from happening.

I like this route because it makes the tenant do all the work and is free for you (although the sweep account feature may come with a few. If you have lots of properties, this is worth the fee but if you only have a couple, then set up your mobile banking and simply transfer the money yourself. It's quite simple.

The best feature is, the funds are good. The bank will not transfer the funds if the funds aren't there.

Originally posted by @Max James :

I use cozy, free and good

Max I looked up cozy.  That looks great to use for my first property.  Is there a holding period for rental payments or does it go into your account same day?

Originally posted by Craig James:
Originally posted by @Max James:

I use cozy, free and good

Max I looked up cozy.  That looks great to use for my first property.  Is there a holding period for rental payments or does it go into your account same day?

 Try to make sure your residents have it auto pull from their account 4-5 days before the rent is due. The entire transaction takes some time. But it's pretty incredible, no more depositing checks with your phone. This is going to be a mandatory requirement for my next set of residents and all my properties moving forward. Automatic reoccurring payments is the only way to go in my opinion. I highly recommend Cozy. The only thing I dislike is that their UI is somewhat cumbersome. They put in too many features when all I use it for is payments. It would be nice if they could simplify the user experience a little bit. Also, when is the Cozy app coming out??!

Originally posted by @Max James :
Originally posted by @Craig Hyson:
Originally posted by @Max James:

I use cozy, free and good

Max I looked up cozy.  That looks great to use for my first property.  Is there a holding period for rental payments or does it go into your account same day?

 Try to make sure your residents have it auto pull from their account 4-5 days before the rent is due. The entire transaction takes some time. But it's pretty incredible, no more depositing checks with your phone. This is going to be a mandatory requirement for my next set of residents and all my properties moving forward. Automatic reoccurring payments is the only way to go in my opinion. I highly recommend Cozy. The only thing I dislike is that their UI is somewhat cumbersome. They put in too many features when all I use it for is payments. It would be nice if they could simplify the user experience a little bit. Also, when is the Cozy app coming out??!

I was wondering the same thing after reading more.  They need an app ASAP!

The only payment/mngt program that I have found which allows you disallow partial payments of rent(which is important in states where accepting partial payments during eviction process will require you to start all over with the 3 day notice is erentpayment.com.

Craig James

If you use Chase Bank try using their Quickpay option. I only have two units to collect rent from but I have my tenants use it. It's free and easy for them and they don't even have to have an account with Chase to do it.

Good Luck!!!!

Hi Craig James

Good news! Cozy will work on any mobile device or tablet.  Just login via a mobile web browser.  No need to download another app. You can also save it to your home screen by following these instructions: http://www.howtogeek.com/196087/how-to-add-website...

With that said, enough people still want an app to download in the App store, so we're building one.  But in the mean time, all the same access is there via your browser.  Cheers!

Hi Craig James,

Congrats on your first 5-plex! Appfolio has some great features, but they are pretty expensive when you're starting out. It's a minimum $200 per month, with a 2-month minimum set up fee. However, there are some great options for landlords with growing portfolios. I know BiggerPockets has a pretty extensive list of online rent payment tools here:

https://www.biggerpockets.com/rei/pay-rent-online-...

Good luck with your first building.

Originally posted by @Deanna Bennett :

Hi @Craig Hyson,

Congrats on your first 5-plex! Appfolio has some great features, but they are pretty expensive when you're starting out. It's a minimum $200 per month, with a 2-month minimum set up fee. However, there are some great options for landlords with growing portfolios. I know BiggerPockets has a pretty extensive list of online rent payment tools here:

https://www.biggerpockets.com/rei/pay-rent-online-...

Good luck with your first building.

Deanna,

I have spoken to their reps and an investor that has sort of been a mentor to me uses Appfolio and raves about it.  I went through some training with an account rep and it is definitely the software I am going to use as I hopefully grow a portfolio.  Appfolio is easy to use, set up, and the fact they have someone there for you if you need assistance with something is awesome.