Paypal to collect rents??

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Max T.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
9y

cozy is free

4-5 days for the money to make it through..

7Reply
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  • Benjamin Clark
    Realtor · Pittsburgh, PA · Member since 2016 · 32 posts · 17 votes
    9y

    I have many units and several collection methods with one cardinal rule, "I don't collect cash in person!" Most of my tenants take their rents to the bank for me with an account that I give them which is swept into the operating account every night. Or they pay by credit card online or set up on auto draft. However I do have a few tenants who get paid through PayPal and prefer to send their rents to me through PayPal. There aren't many but because I am a verified PayPal member and it's connected to my operating account, it is a relatively seamless process and works well for those tenants.

    5Reply
  • Tony Velez
    OP
    Hvac · North Haven, CT · Member since 2015 · 298 posts · 79 votes
    9y

    The issue were having is the first and second floor tenants are old and pay every month in cash. Were trying to figure a system so we dont have to go door knocking. 

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    I use paypal for one of my tenants

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    2Reply
  • Chinmay J.
    Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
    9y
    Originally posted by @Tony Velez:

    Hi,

    Was wondering if anyone uses paypal to collect rents?

    Thanks

    Tony V

    Not sure what kind of fees they charge. If they charge percent of transaction its very costly method of collecting rent. I use erentpayment for all my properties. Flat $3.00 per transaction. Money is in my account in 3 days. Customer service is great. Always friendly staff to assist you if you need help. I wish they had monthly subscription fee for people with multiple units. 

    Only time I use paypal is when I buy something online (usually from ebay)

    In your particular case the best method is to set up an account at the nearest bank/credit union, and give them the account number. As soon as you see money in your account, you can transfer it to your account via check or ACH payment.

    5Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    9y

    cozy is free

    4-5 days for the money to make it through..

    7Reply
  • David Lilley
    Rental Property Investor · Dallas, TX · Member since 2016 · 261 posts · 170 votes
    9y

    Yes, I have used PayPal in the past but have now switched to Venmo which is MUCH faster. Withdrawals usually hit my bank account within 1 business day. Keep in mind I use this method for a SFH rental.

    6Reply
  • David Lilley
    Rental Property Investor · Dallas, TX · Member since 2016 · 261 posts · 170 votes
    9y

    If they have a phone which allows them to download Venmo, once you get them setup on the app it is very user friendly.

    0Reply
  • Rick S.
    Fort Collins, CO · Member since 2014 · 397 posts · 161 votes
    9y
    Originally posted by @Chinmay J.:
    Originally posted by @Tony Velez:

    Hi,

    Was wondering if anyone uses paypal to collect rents?

    Thanks

    Tony V

    Not sure what kind of fees they charge. If they charge percent of transaction its very costly method of collecting rent. I use erentpayment for all my properties. Flat $3.00 per transaction. Money is in my account in 3 days. Customer service is great. Always friendly staff to assist you if you need help. I wish they had monthly subscription fee for people with multiple units. 

    Only time I use paypal is when I buy something online (usually from ebay)

    In your particular case the best method is to set up an account at the nearest bank/credit union, and give them the account number. As soon as you see money in your account, you can transfer it to your account via check or ACH payment.

     Hi Chinmay, we do offer a monthly option so please check our Pricing page for more details as I don't think I can post the information here. Or let me know and I can message you. Thanks!

    2Reply
  • Sara Abernethy
    Investor · Hummelstown, PA · Member since 2016 · 70 posts · 28 votes
    9y
    If you use Paypal, it has to be connected to their checking account in order for it to be free. If they connect it to a credit card, there's a fee and I make my tenants cover that fee. Venmo is more seamless in my experience and I prefer it.
    5Reply
  • Chinmay J.
    Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
    9y
    Originally posted by @Rick S.:
    Originally posted by @Chinmay J.:
    Originally posted by @Tony Velez:

    Hi,

    Was wondering if anyone uses paypal to collect rents?

    Thanks

    Tony V

    Not sure what kind of fees they charge. If they charge percent of transaction its very costly method of collecting rent. I use erentpayment for all my properties. Flat $3.00 per transaction. Money is in my account in 3 days. Customer service is great. Always friendly staff to assist you if you need help. I wish they had monthly subscription fee for people with multiple units. 

    Only time I use paypal is when I buy something online (usually from ebay)

    In your particular case the best method is to set up an account at the nearest bank/credit union, and give them the account number. As soon as you see money in your account, you can transfer it to your account via check or ACH payment.

     Hi Chinmay, we do offer a monthly option so please check our Pricing page for more details as I don't think I can post the information here. Or let me know and I can message you. Thanks!

     I stand corrected. I will check. 

    0Reply
  • Inshad Kaller
    Irvine, CA · Member since 2017 · 11 posts · 10 votes
    9y
    I would go set up a deposit account that's what we have done and just give them the account number they can go give the cash to the bank or like pp mentioned use auto draft from their bank account to that deposit account if they don't want to go to bank either. Some older people are not very tech Davy and even PayPal may be too much for them to figure out plus they charge 3%.
    2Reply
  • Ben H.
    Investor · Jacksonville , NC · Member since 2015 · 143 posts · 54 votes
    9y
    2.9% + $0.30 per transaction.
    1Reply
  • Tom Kaider
    Investor · Palatine, IL · Member since 2015 · 69 posts · 31 votes
    9y

    We use management software, and simply send tenants a link for their online tenant login portal.  They pay rent either by typing in their check info, or by credit card, and then that is automatically imported into the management software to track the financials of that unit.  Similar for vendors.  It saves time because there is not double-entry of bookkeeping: pulling data from PayPal and then having to port it into software that tracks the financials of the rental properties.

    I have a lot of client for whom we only do the bookkeeping.  It's a niche in the management industry, and I'm the only one I've come across doing it.  You could call it "rental property specific bookkeeping".   Send me message if you have any questions about using management software for all rent collection. 

    3Reply
  • Syed Lateef
    Professional · Chicago, IL · Member since 2012 · 197 posts · 131 votes
    9y

    I use Venmo. Paypal owns Venmo. This is a very easy way to collect rent. Its free and easily connects with all major banks to simply login 

    After the money comes into my Venmo account i can transfer it to my checking account. Takes 1 day or 2 to do so

    2Reply
  • Jeff Gates
    Investor · Cathedral City, CA · Member since 2014 · 481 posts · 170 votes
    9y
    Originally posted by @Ben H.:

    2.9% + $0.30 per transaction.

     Does Paypal really charge this amount?

    1Reply
  • Todd Nurnberger
    Rental Property Investor · Boerne, TX · Member since 2015 · 94 posts · 52 votes
    9y
    Another thumbs up for Venmo. We are using it with two rentals and one owner finance. We are going on our second year with Venmo. At this time there is no cost if they are not paying with CC. Typically we sweep the funds out of Venmo account the same day they pay and funds typically are available in our bank account in two days.
    4Reply
  • Kyle Kirkland
    Lansing, MI · Member since 2017 · 1 post · 1 vote
    9y

    Tony, 

    My business banking account is through PNC bank (not sure if they have one in Connecticut). They have a type of account called "Cash flow" that allows for your tenants to pay directly to you on-line. It cost $15 a month however, I have found that it makes my job a lot easier seeing that the rental properties are a not in the same area and not in the area that I am living. It also allows for you to send invoices directly to the address or their e-mail address. 

    1Reply
  • George Walker
    Oklahoma City, OK · Member since 2016 · 32 posts · 10 votes
    9y

    Paypal charges a very high fee for the convenience of using their server for payments. I setup an account at a local credit union and gave my tenants the "nickname" of the account. This way they don't even have the account numbers. Then I found out that I am being charged $25 per/month for this business account. In hindsight, using Paypal is probably cheaper. But I needed a separate account for my rental property income, for tax purposes.

    1Reply
  • Charlie Price
    Rental Property Investor · Niceville, FL · Member since 2017 · 88 posts · 136 votes
    9y
    I do use PayPal quite a bit. I normally eat the first transaction fee, then let the tenant know that if they would like to continue to pay their rent with PayPal that they have to pay the extra 3% for that convenience. Some do it for the convenience. You can also get a PayPal credit card scanner gadget for next to nothing that you can plug into your phone and scan people's credit cards. You can even take their credit card number over the phone and charge it remotely in a pinch. Same 3%, maybe 3.5%?? I also always set up bank accounts near my properties and give the tenants deposit slips. I coordinate their payments with their apartment number, and have then write their apartment number on the deposit slip. Like apartment 1's rent would be 700.01, apartment 2's rent 700.02. So on and so forth. The bank teller green bed then a receipt for their records, I have them send a text when they pay. Then I confirm online and check them off the list for that month. Works fairly well for us.
    4Reply
  • Steven Muresan
    Chicago, IL · Member since 2017 · 6 posts · 2 votes
    9y

    Hello @Benjamin Clark 

    I like your idea of giving them an account to deposit in, how do I do that ? Some of my tenants pays me the rent with QuickPay, mailing checks and 1 of them with cash. 

    1Reply
  • Jeff Gates
    Investor · Cathedral City, CA · Member since 2014 · 481 posts · 170 votes
    9y
    Originally posted by @Charlie Price:

    I do use PayPal quite a bit. I normally eat the first transaction fee, then let the tenant know that if they would like to continue to pay their rent with PayPal that they have to pay the extra 3% for that convenience. Some do it for the convenience. You can also get a PayPal credit card scanner gadget for next to nothing that you can plug into your phone and scan people's credit cards. You can even take their credit card number over the phone and charge it remotely in a pinch. Same 3%, maybe 3.5%??

    I also always set up bank accounts near my properties and give the tenants deposit slips. I coordinate their payments with their apartment number, and have then write their apartment number on the deposit slip. Like apartment 1's rent would be 700.01, apartment 2's rent 700.02. So on and so forth. The bank teller green bed then a receipt for their records, I have them send a text when they pay. Then I confirm online and check them off the list for that month. Works fairly well for us.

     So what is 3% of a $2000 rent payment? Are you saying a tenant will pay $60 (each month) just to pay you rent?

    1Reply
  • Matt Mayotte
    Flipper · Minneapolis, MN · Member since 2017 · 12 posts · 8 votes
    9y

    facebook allows free payments through messanger if you connect it to a bank account.  I setup a fb landlord account and only use it for this specific purpose.

    1Reply
  • Joe Martella
    Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
    9y
    My banks (ally and Investors) have pop money. It is free to send money with an account and routing number. Money is deposited within 3 business days.
    1Reply
  • Nick Patel
    Investor · White Marsh, MD · Member since 2016 · 48 posts · 11 votes
    9y

    I ask my tenants to use bill-pay service from the rent. It takes about 2/3 days to transfer and its free for both. Go to your bank and ask them for their mailing address for bill-pay. Give your account number, bank name, & address to your tenant(s). I have multiple tenants sending me the rent so my bank put their name on the description which make its it easy to recognize.

    Safety: I keep minimum balance and move the rent to another account on the 5th of the month...

    2Reply
  • Steve Bass
    Investor · Portland, OR · Member since 2016 · 1 post · 1 vote
    9y
    I use Square Cash, PayPal, Chase QuickPay, and some pay with check. I really like Square Cash and Chase quick pay. But I just like to provide options for the tenant. None of these options charge a fee for me or the tenant.
    1Reply
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