What is the best way to collect the application fee?

What is the best way to collect the application fee?

MD · Member since 2014 · 32 posts · 5 votes

I see a lot of folks talking about services that can collect the application fee AND do the screening, such as cozy.co. I have not looked deeply into these options.

That being said, I plan to submit my own screening via RentPrep, but I want to collect the fee and submit the background check myself. What are people using to actually collect the application fee that is not baked into the actual screening?

Thanks,

-Brian

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Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
6y

I just use SmartMove. They send the tenant an email, tenant clicks, pays online, and the info comes to me. I don't have to deal with any of the fees.

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  • Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes
    6y

    @Brentin Trent for everything I only take money orders. 

  • MD · Member since 2014 · 32 posts · 5 votes
    6y

    @Account Closed that seems laborious and time intensive given I will want the fee prior to processing the application. Any online alternatives?

  • Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes
    6y
    Originally posted by @Brentin Trent:

    @Account Closed that seems laborious and time intensive given I will want the fee prior to processing the application. Any online alternatives?

    Mysmartmove you can make the applicant pay for it.  But are you talking about charging above and beyond the cost of the background check?  If so you can use zelle, PayPal, or any online payment processing system.  

    I only charge the amount for the background check so it’s a wash for me.  I don’t make money off of people applying.  

  • Investor · Tempe, AZ · Member since 2018 · 1k+ posts · 731 votes
    6y

    @Brentin Trent, I understand your desire not to go through the rent collection portal just for an application fee.  However, I would encourage you to use whatever system you will eventually use.  Consider it a test run before executing the lease.

    For example, if you want to use Venmo but the tenant informs they refuse any P2P payment apps, that is your opportunity to find out now.  If you do use a management software, it always confirms the tenant is setup and capable of paying their first rent on-time with no excuses.

    TL;DR:  Use whatever rent payment system you intend to use.  Venmo, PayPal, Zelle, Cozy, Burbz, TenantCloud, etc.

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    6y

    @Brentin Trent We have a website that we run and collect payments on for applications, but before that we had a mobile app that linked to our bank account to run application fees on. Definitely much faster than meeting up with people and exchanging cash, checks, etc.

  • Rental Property Investor · Huntsville, AL · Member since 2013 · 419 posts · 323 votes
    6y

    Cash App. 

  • Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
    6y

    I just use SmartMove. They send the tenant an email, tenant clicks, pays online, and the info comes to me. I don't have to deal with any of the fees.

  • Investor · Colonial Heights, VA · Member since 2014 · 115 posts · 68 votes
    6y

    @Jennifer Rysdam I do the same.

  • Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    Mysmartmove you can make the applicant pay for it.  But are you talking about charging above and beyond the cost of the background check?  If so you can use zelle, PayPal, or any online payment processing system.  

    I only charge the amount for the background check so it’s a wash for me.  I don’t make money off of people applying.  

     I have people paypal the money usually. Some people are behind the times and on occasion I take a money order.

  • Clint ShelleyPro Member
    Surveyor · Dothan, AL · Member since 2014 · 425 posts · 391 votes
    6y

    @Brian Greeson

    Smartmove for me too. I'm hands off except for the info. Easy and gives the applicant/tenants and me a layer of protection. Easy.

    Clint

  • Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    @Brian Greeson

    My background check is $25 and due when they give me the application. Cash, money order, and I’ll even take a check for that only because if a $25 check bounces that’s a definite no..

  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    6y
    I have the applicant pay direct to Cozy....... you can do the same with Smartmove...... It takes me out of the loop...... tenants don't see me as using it as some cash grab... I don't see a dime....no pressure to refund if they don't pass...... I never have to do any data entry.....don't see some of the more sensitive info..... I just give them the link and then look at the results...... easy peazy....
  • Rental Property Investor · Pasadena, MD · Member since 2019 · 42 posts · 3 votes
    6y

    @Brian Greeson Cozy makes them pay the app fee. Vts screening is great but they just changed the rule you have to have 100 plus units to use their service.

  • MD · Member since 2014 · 32 posts · 5 votes
    6y

    I like the idea of having the tenant fill out my application so I can check references, etc. I suppose I could do that and then also send them to rent prep or somewhere where they pay for their background screen

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