How do tenants pay their rents?

41 Replies

@Jupshy Jasmin Hi Jupshy, first of all, congratulations on your new property! I have always just accepted checks, I know this is a tedious and outdated method. Here is a list of software that BiggerPockets recommends. Hope this helps!

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

I have been using CASH app and Zelle for accepting rents and I am very happy with it. Rent deposits instantly with Zelle whereas next day with CASH app. Tenants can pay using their mobile phone. You can request rent from your phone. The best part, its free to accept and send payments.

@Jupshy Jasmin - Congratulations on purchasing a rental property. I use Cozy right now and I love it. 

It's 100% free and you can walk your tenants through setting up recurring payments that hit your bank account on the 1st of each month. That way, it's literally impossible for them to forget. 

Really the only way they don't pay rent is if they don't have money in their account, which is something your screening process should take care of! 

Thank you for your help, Chaz and Al. I am looking into these various options.

@ Al: With Zelle, can I charge late fees? Do they send automatic reminders for rental payment? What are some ways you have used it to manage your rental income?

@ Craig: I watched the YouTube video and Cozy sounds super awesome. The only fall back is that I would not receive the payment instantly. But I am looking more into it, so thank you.

Cozy sounds like a online property management site that allows automazation and systemization.

If you have plans to purchase more properties then for sure setup an online option for payment. I learned the hard way, I now have 200 units and it's a mess. I just started using Cozy this month

@Tami, for now I only have 2 tenants and was wondering if Cozy or another option will work to keep me organized without chasing after rent payments. What do you specifically like about the application?

@Jupshy Jasmin I use rentecdirect.com for my property management software. They have an online rent collection tool as part of their program. I like management software that incorporates rent collection because it records their rent payment automatically instead of going through a third party which would cause you to manually enter the rent payment into your accounting software.

@Jupshy Jasmin so far I like it. It's easy to use and it's just a clean site. My tenants find it easy too. If they pay out of their savings or checking they are not charged. I still use quickbooks for my bookkeeping though but it's all been smooth. I tell people all the time even if you do not have multiple properties start it like you do because when you do it will be easier. For example if they mail their checks I immediately got a PO Box so people do not know where I live

@ Tami: thank you for sharing your experience. Cozy caught my attention because they automatically charge late fees if the tenant pays after a current date and send payment reminders. I really don't want for tenants to mail their checks or directly deposit it into my account.

@Jupshy Jasmin I’m on my second year using Cozy and I’ve found it easy to use. For a couple rentals it seems to work great. I have an older couple in my one rental and they had no problems getting set up and making payments on time. I track all my expenses in Cozy and upload receipts when needed. I don’t know how well Cozy will scale but so far I enjoy its ease of use for myself and my tenants.. not to mention it’s free to use. Biggest con is it take 6-8 days on average to receive deposit. Sometimes longer if there is a holiday. This isn’t an issue for me but I can certainly see how it could be a significant drawback for some investors.
I’m under contract on my first duplex and Joe Fairless advertises Rentler on his podcast. I was considering using that. Never heard of Cozy before this. Seems pretty similar. Curious to know if anyone has tried both and which one they liked better.
@Jupshy Jasmin Congrats! I have been using Rentalutions.com and it’s a great site. We have 4 units using the site and I really like the way they bill. It is just a flat rate every month that is much more reasonable than the different fees you see on other sites. The site also has a great and easy to use dashboard which I love. The site also let me charge a different amount for each unit where other sites had to have them all match. I know In the comments you mentioned instant payments. That is the only part of the site that is a minus. It takes 2-3 days from when the payment is made to when I see it in my account. Given all the other positives with the site I am able to overlook that delay. I hope this helps!

My two tenants transfer me the rent via EFT. I am going to check out the RentRedi platform though and possibly start using that portal since Pro members get a discount.

@Jupshy Jasmin I started using Buildium this year and have liked it. It takes some getting used to, but I wanted it for EFT payments, tracking the late fees, sand tracking expenses, so it acts a little like QuickBooks in that regard. I also like that I can send leases and lease renewals and have tenants e-sign.

@Jupshy Jasmin I've used Cozy for my investment property over the last 16 months and I've loved it.  Our tenant appreciates the fact that they can use autopay and not have to worry about sending a check every month.  As an investor, I don't have to worry about late payment since autopay is set up.  However, if your tenant fails to set up autopay and they pay late, you're able to place an automatic late fee on the rent due.  

We also keep a copy of the lease agreement on Cozy so both myself and the tenant have an electronic signed copy of the lease.  If you were to refer to the lease when talking with the renter, they won't be able to tell you "I don't have a copy" or "I lost it".

The only drawback is the amount of time it takes for the rent to send an ACH payment into your account.  I believe it takes 5 business days, or you can pay a $2.99 fee to lower it to 3 business days.  However, as soon as payment is made by the tenant, I receive an email saying the payment is on the way.  While it takes a little while, I don't have to worry about whether or not it's going to get deposited in my account.

I'm closing on another rental unit in 15 days and will absolutely use Cozy for that property!

@Will Crocker : congrats on your first duplex. I just purchased my first duplex and is about to collect my first rent. I never heard of Rentler but I would like to know what my various options are.

@Jenna Columbus : thank you for sharing rentalutions.com with me. Since I plan to manage the property on my own, I am looking for great online resources that will promote my productivity.  I will navigate the site to learn more about it.

@Kevin Phu : Thank you, I didn't know we had a discount with RentRedi. Really appreciate it.

@Account Closed : You're the second person on this forum to mention Zelle, I really appreciate it.

@Jason Parfitt : The last thing I want to do is run after tenants for rent, better yet, late payments. Does the system send out reminders for upcoming rent bills and notify them when they have a late payment?

If they pay late and only decide to pay the monthly rent, does the site have a way of prohibiting them from sending partial payments?

I like the idea of maintaining a copy of the lease online for reference purposes. I like to old fashion sitting down with the tenants and manually signing the lease after reviewing the terms, so does the site allow me to upload the copy of the lease too? Or is the copy of the lease is available if I select to electronically sign it through their services?

I really appreciate you sharing your experience with me.

Originally posted by @Jupshy Jasmin :

I just purchased this rental property and trying to figure out how to accept their rental payments. Have anybody used Cozy online features? I am skeptical in regards to direct deposit.

 I currently use Cozy and I like their system for people thats starting off. If you dont pay for the express deposit the was wait for deposit is 3-5 days. I don't mind it because I have enough reserves to cover the mortgage until the deposit comes in.

@Jupshy Jasmin I use them for maintenance request late, fees documents , gives tenants an opportunity to get there rent reported to the credit bureaus. Cozy is easy to setup free and great for first time landlords.