How are you collecting payment?

22 Replies

Hey guys,

I am in the process of getting my first quadplex and am wondering how everyone is collecting rent. Are their good apps/software? Are you directly drafting from account? Check?

Thanks!!

@Pat Peri It's up to you.  I would definitely present more than one way of paying for to your tenants.  Some tenants are not as tech savvy as others to use apps or online deposits.  My PM accepts online collection and checks.  Not sure what you mean by directly drafting from an account, but I am assuming you mean the tenant does a reoccurring ACH transfer.  Some of my colleagues are even starting to accept via Venmo.  I honestly won't go that route, but to each their own.  I absolutely would never accept cash though.  Had many issues with this previously.

I'm very happy with Cozy.co

I accept Venmo or ACH transfer to my account or check.  No cash.

Just curious. Why don't you accept cash?

Why don't you accept cash?

I put in the lease that all rent is electronic. I don't accept checks! I've used cozy but there's a high fee on the end of the tenant. Now I often use popmoney. It's $.50 a transaction. Good luck!

@Sara Peak There is NO tenant fee or Landlord fee at Cozy (excluding if you want a rapid transfer, but that is on the LL)

@Pat Peri I have a bank account set up local to my units. Within our lease we provide the bank account details and require the tenant to either deposit in person or electronic transfer by 1st of month. This makes it very easy to see who has or has not paid on time. Hope this helps!

I have my tenants deposit directly into an account specifically for rent deposits. I provide them with deposit slips to do so. By doing it this way the bank effectively provides a payment company to me at no charge. If the deposit is not made by the due date, I start the eviction process. I also allow my renter to set up bill pay to the same account.

Often times people argue that the renter has the account number and could possibly commit some sort of bank fraud (which is an entirely different issue). With this said, the renter has the same information in the event that you return their deposit with a check. I also find comfort in that I do a background check at the time of application.

The reality is if you are worried about your renter doing something illegal with your account information they may the renter you want.

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I put in the lease I accept rent by direct deposit only. Once the tenants deposited the rent to my rental checking account, I transfer the balance to my personal checking account. Everything is managed online.

Cozy.co is what I use. I used to get checks mailed, but that is a pain. Online is the way to go. I wouldn't accept cash because that means you have to drive to the property, etc to collect. Cozy is free for both users. Pay your mortgage a month in advance and you will be good waiting the 3-5 days it takes to get into your account.

Thanks everyone this is great advice!

Paylease.  It offers ACH, Bank cards, cash payment at Walmart etc

buildium has worked well for me

I use Rentalutions.com

I have 25 apts, 65 tenants which means I have a lot of roommates.

While I pay a subscription to allow all the tenants to pay for free, there is no other transaction fees applied to either them or me.

They can pay as often as they want, again, without any more charges to the tenants or me.

I also love the fact that they tell me when the Rent is Scheduled by the Tenant, including recurring scheduled rent payments, when it is drafted from the tenant's account, and when it is scheduled to deposit to my account(s).

I usually download the data into my own personal software so I can run reports and talk to tenants that are problematic by showing them that they are drafting the payments too late, or are splitting the monthly payments incorrectly.

I also love the fact that every roommate sees each other's payment and is reminded before the rent is due. They are told to pay on the day of as well and are given a warning email when it is overdue and when they will be charged a late fee.

Transactions are 3 business days.

Rentalutions also has Apt Maintenance and my tenants can communicate with me via the website.

They have a tenant screening and tenant applications.

They have Syndicated Listings to other websites.

Also, what I really like, is that I can email them and really expect a reply within 24 hours and a lot of time much earlier than that.

It's all rather easy and I can set up any number of Bank Accounts for any number of properties.

I've not had any issues at all with Rentalutions and I will continue to work with them as I increase my portfolio size.

Originally posted by @Patrick Queisner :

I have my tenants deposit directly into an account specifically for rent deposits. I provide them with deposit slips to do so. By doing it this way the bank effectively provides a payment company to me at no charge. If the deposit is not made by the due date, I start the eviction process. I also allow my renter to set up bill pay to the same account.

Often times people argue that the renter has the account number and could possibly commit some sort of bank fraud (which is an entirely different issue). With this said, the renter has the same information in the event that you return their deposit with a check. I also find comfort in that I do a background check at the time of application.

The reality is if you are worried about your renter doing something illegal with your account information they may the renter you want.

 How do you stop a tenent from making partial payments?

Or a payment while you are evicting?

@Rick T. - I just submitted an inquiry with PayLease. I'm particularly interested in their CashPay program and would like to accept cash payment at the local Walmart. Can you expound on any of their fees and business requirements, specifically if they require you to be an official business entity (e.g., LLC, Scorp) and if they have a unit minimum. I'm currently at 13 units and am looking to save time on those pesky cash payments.

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