Investor · Edwardsville, IL · Member since 2014 · 142 posts · 54 votes
Actually, the title says it all. Right now I'm using a PO box that everybody mails their rent to. But late rent is getting blamed on the Post Office (which is possible). It seems like the 2020 there should be better options... Any and all suggestions are appreciated!
I have been house hacking for a year now and have been exclusively using Cozy to collect rent. It super easy for me and my renters and there are no fees for me unless I want to expedite the payment (I don’t use this). I can highly recommend it!
Investor · Tx, GA · Member since 2019 · 313 posts · 337 votes
6y
If you're old enough to rent, you're old enough to use the internet, and you really should be using something easy to track like zelle or cozy. Check is fine too, but has to get annoying if you're traveling or have to deal with a missed payment.
Investor · Gilbert, AZ · Member since 2017 · 54 posts · 44 votes
6y
I only manage four doors. We used to accept all forms. Became a huge hastle. Stopped accepting cash a few years ago, but some unbanked tenants paid by cashier's check, which often wouldn't be accepted by ATM (or phone deposit).
Now, I ask whether or not they have a bank account on my application (I won't rent to them if they're unbanked - because if you can't manage a bank account, the rest of your financial life and your ability to pay rent on time are likely compromised). I also charge a fee for accepting checks. In other words, electronic payment is king. I've used cozy in the past. Also Venmo. But Zelle is easiest and all my tenants currently pay that way.
Realtor · Boston, MA · Member since 2014 · 159 posts · 75 votes
6y
Like most of the others on this post, I use Cozy for my rent collecting. It does indeed take up to 4 days for it to be deposited but most of my tenants are aware and they usually post their rent payments ahead of time so that I get it on time. You can also add late payment fees in and because it reports to the credit bureaus, it does indeed provide much incentive for the tenants.
Rental Property Investor · League City, TX · Member since 2016 · 97 posts · 32 votes
6y
@Marvin Meng I use Buildium which allow me to accept payments online through the resident portal. They can pay by card or eft. It also has an option to set up “pay near me” retail cash payments at participating locations.
@Marvin Meng I’ve been using Venmo for 2 years now. J love it. I’ve also given renters a bank account number and had them deposit rent directly to my account
And yes. They will blame the mail service.. and everything else.. I had one renter blame their new checks weren’t working. That’s why they bounced.....
Investor · Edwardsville, IL · Member since 2014 · 142 posts · 54 votes
6y
I've been checking out Venmo (going to look in to all of them though). I looks like they charge 2.9% per transaction. Do you pass the expense to the tenants (in other words, do they pay a "Venmo fee"?
I tried out Cozy and I've been enjoying it. Not a good option if you need your money quickly. It takes a few days to get money from their account, to Cozy, then your account.
Cozy reports payments to Equifax, so there is added incentive to pay on time. Every potential tenant I interviewed liked the idea of their credit improving with payments.
Thanks for your answer! How long does Cozy typically take? Are there any hidden costs or disadvantages? It looks too good to be true...
At some community locations, including our office, we have a deposit box where rent can be dropped off. Checked periodically, it doubles as a key and letter drop as well. Cash isn’t accepted; too easy to lose, hard to deposit. Other options are mail to PO box.
They can also setup via their bill pay online at their bank. Tenant schedules payment, we are mailed a check.
Real Estate Agent · Cottage Grove, WI · Member since 2017 · 14 posts · 4 votes
6y
@Marvin Meng
We use cozy because it’s free and easy to use. Cozy makes money on farming your money out for 6 days so if a tenant pays on the first you get your money on the 7th. So I have my mortgages setup to pay on the 8th.
If my tenant doesn’t want to use cozy I will charge them an extra 25 per month.
I also have a drop box for anyone that’s 75+ and doesn’t have a computer or for inherited tenants.
I use Dwolla and PayPal for rent collection. Sometimes I accept cash if a tenant doesn't have a chance to send me money online. But I'm not a big fan of cash payments. Luckily, I can record it in the system (Tenantcloud account) and add additional transaction details.
Real Estate Agent · Phoenix, AZ · Member since 2012 · 640 posts · 457 votes
6y
All of my tenants pay electronically through Buildium. ACH payment is .50 cents per payment paid by the tenant. Multiple roommates can split up the rent however they want, or pay one lump sum. CC payments cost something like 2.75%, so I just disabled those by default.
With non savvy with a computer tenants (pay online), I have an account at the local bank where they just stop in and deposit their rent. It works great for me.
Thank you for that answer! Does your bank allow you to see who deposited the money? Right now I'm at 12 units and working toward more. Many have the same rent so I wouldn't always be able to tell from the amount.
@Marvin Meng I have been using Cozy for about 4 years now for both of my properties. It is a good platform for 20 units or less. Allows tenants to pay with a debit card or credit card. You can pay $2.99 a month for each unit if you want the rent 2 or 3 days earlier than usual. Rent takes about 5 days to be deposited into your bank account. Anything higher than 20 units is alittle stressful. Appfolio or Buildium are stronger options for larger portfolios from what I have heard.
Thanks for your answer. I'm looking really closely at Cozey. Why does it get stressful above 20 units? Right now I'm at 12 but trying to grow.
Investor · Glen Carbon, IL · Member since 2013 · 40 posts · 18 votes
6y
I'm using cozy, and have no issues. The only downside, if you call it that, is it takes about 5 days to get from their account to yours. But you always receive two emails for each person paying (I have 3 college students splitting rent): one email saying payment has started (say on Dec. 1), then another one saying it's depositing (say on Dec. 5, with expected deposit date on Dec. 6). It happens like clockwork, and you have a good record. For me, rent is due the 1st, but not late until the 6th. So, if tenants use cozy, I tell them to start the process on the 1st, not the 5th. I don't really care if it deposits on 5th, 6th or 7th, since I can see when process started. I'd be glad to answer any questions you have about it.
Chicago, IL · Member since 2018 · 546 posts · 227 votes
6y
Hi Marvin! In terms of managing your own portfolio, there are a lot of really helpful tools out there that can help you to do this without needing to throw a ton of money towards a property manager. I think there are a lot of great platforms alrady mentioned above but still keep in mind other options!
Aside from providing the basics (ie. listing tool to get the property published to 10+ major sites, scheduling tool to schedule viewings, tenant screening with comprehensive applications -- pulled reports from TransUnion, which include nationwide criminal background checks + credit checks + eviction history, digital lease creation tool, rent collection tool, and maintenance tracking tool), some tools also make it so that your tenants have additional capabilities which makes it an easier sell on your end when getting them to transition over (ie. their ability to report on-time rent payments to the credit bureaus; this can create an added incentive for making sure they pay that rent on time). I hope this helps!