What is your favorite way to accept rent from tenants?

165 Replies

@Cody L. thanks for the breakdown of payment type. But you have to know, some tenants don't understand the calculation of energy and time. They would prefer conventional ways to pay the rent. But at least they are still paying ^^ 

I love Cozy.co !  I know some earlier comments said that it's easy for the landlord to overlook when there's a missed payment but I have not found that to be the case. As long as you're diligent in checking the platform on the first of the month, you're good. It also sends you notifications when there are payments made and the deposit is expected to be in your account.

@Scott L.

I do the same with my tenants. They go to the bank with cash, money order, or check and deposit it into my business account. I have had zero issues with it, and the money is available the next business day with cash and money order deposits, checks clear in about three to five business days. I have put the responsibility on them and it saves me some time. 

@Jess White I use both Cozy and Venmo. Venmo is great because it's so quick to deposit to your bank account and is free but the accounting isn't great so I prefer Cozy since it's also free and works with your LLC.

I use erentpayments. They debit my tenants accounts and deposit into my rental account. 

We are fans of cozy.co and I appreciate the issues related to cozy detailed here. 

Venmo (which is owned by PayPal).  BTW, PayPal did an (unwarranted) chargeback once and reached into my linked bank account.  It was a nightmare getting it straightened out.  Venmo is increasing its fees for instant transfer from .25 to 1% of the transaction amount, but regular transfers are very fast.  Still, because of that most people in my area are switching to Cash app (by Square)

When I grow up and get many units I will look into this Cozy of which you speak, sounds great.

My favorite way is to take traveller's checks.  Have my tenants convert them to Yin and then to Pesos.  Then deliver them in the old school money bags with the dollars signs stamped into the side.  :)

Any time they pay rent on time is a win for me regardless of how they pay honestly.

Originally posted by @Daniel Cullen :

I have used ClearNow for the last few years and I love it. I have 8 tenants total and they all opted in. ClearNow payments will impact help them improve their credit score and it only costs me $30 or so per month. The tenant's payments go to ClearNow on the 3rd and are credited to my LLC account on the 8th. I never have to go to the buildings to pick up checks and I love that! If I am looking to sell any of the buildings I have proof of rents and payments at my fingertips.

That sounds like a worse version of Cozy if you have to pay for it??

Originally posted by @Saj Shah :

@Thomas S. Totally agree.

When signing the lease with the tenant, I only give them one choice - deposit it directly in my Wells Fargo account. No car? Take the bus.

These are C/D tenants by the way. Many don’t have bank accounts. So they go get a money order and deposit it.

All it takes is training... train your tenants and be consistent.

You're setting yourself up for abuse since you have no control if they pay the full amount or not. If they pay half the rent or even say $100, then you can't evict them that month as they have made a partial payment. With the online services, you can halt payments to avoid this exact situation. 

Zelle!  It's free.  It's available through all the big banks (Wells Fargo, Chase, USAA,etc) and many of the little banks (and growing), and is done in real time with no fees.

@Jess White eRentPayment.com -- super easy and cheap and automatic.

My property manager gets a bundle of 12 post-dated checks in advance for the year. The tenant is out of the picture for payments at that point, and our tenant pool is not the type to bounce. They all seem to like getting it out of the way. 

+1 for Cozy.co. FREE for ACH. Have used it for a couple years now with a handful of properties. Works well and there website has improved some over the years. They now offer background checks and a few other things, haven't tried them yet but plan too in the future. 

Cozy, Zelle or bank deposit.

I am trying to have my whole business in automatic because I feel it is the only way i can grow the business

@Jess White My property manager collects cash or money orders. We do not accept personal checks as I’ve had checks bounce along with the tenant bouncing as well. Most of the tenants do not have a smart phone and or internet banking to be able to adapt to electronic payments so as much as I would like to automate that aspect it’s just not a reality for my rentals.

I use both Venmo and Payyourrent.com. Payyourrent offers a bunch of other helpful landlord features (many for free) and allows for you to pull the money from the tenants accounts when you want it with no holdover. Below is a link to the pricing summary:

https://www.payyourrent.com/about-us/pricing-plan/

I prefer them to stand on one foot while jumping up and down wearing a blindfold and balancing it on their head.

"but the firm, full, heavy feel of the envelope in my hand...oh yeah, it just does something for me..."

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Steady on there, son. This is a family oriented forum.  :)

@Thomas S.

Thomas - What on earth is "T C O T P"   ?     Been racking my brain trying to figure that one out! 

Just curious if anyone else ever thought of this aspect.  We looked into several electronic rent specific options a few years ago and we had some privacy concerns with the set ups.  At the time, Cozy seemed pretty new.  From recollection, you had to enter a valid address (that seemed like it was validated against some database) and then enter all the unit #s, then the rents, etc.  This company then knows how much money you are making monthly for each/all your buildings.  Nothing is ever really 'free' - this data is often sold.  Without evaluating a specific company and their specific TOU I can't give exact examples but this is what stopped us from going all in on any one platform.  Most of our tenants are younger and use electronic options.  

Anyone else with this concern or other insights?

yea cash is good sometimes for the houses you dont want any papertrails after, but generally venmo, cash app, paypal 

@Sam Shueh do you add service charge for accepting to cover the vig?

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