Use PayPal to collect rent?

Salt Lake City, Utah
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Use PayPal to collect rent?

Kilter L.
Salt Lake City, UT · Member since 2016 · 31 posts · 7 votes
Hi Investors! What effective ways do you use to collect rent? Has any of you used PayPal? I collected the earnest money from one my of tenant via PayPal and I found it really convenient. The money transfer from the tenant was instant and I can transfer the money to my checking account immediately. If you can share any experience on rent collection that would be appreciated. Thanks, Lee
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
9y

A word of caution about accepting rent payments through Paypal. The person making the payments can dispute the charge, and Paypal sides with them almost exclusively. You will be out a month's rent at least.

@Russell Brazil

[email protected]Podcast Guest on Show #261
BiggerPockets
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  • Jim Adrian
    Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
    9y

    I use erentpayment.com.   Doesn't pay pal charge you a 3% fee? 

    2Reply
  • Steve Porcello
    Marshfield, MA · Member since 2016 · 25 posts · 5 votes
    9y

    I do it the old fashioned way. I go to the property and pick it up when it's due. Or, I'll have tenants meet me halfway at gas station, supermarket etc..

    1Reply
  • Devin Deswert
    Investor · Salt Lake City, UT · Member since 2016 · 78 posts · 38 votes
    9y

    I would go with cozy.co. It's more geared towards landlords with features PayPal doesn't do. Prior to cozy when I self managed I had a tenet that preferred pay pal for whatever reason so I used it for them. 

    2Reply
  • Kilter L.
    OP
    Salt Lake City, UT · Member since 2016 · 31 posts · 7 votes
    9y
    Jim Adrian PayPal is free for transferring funds and is instant. Devin Deswert I have thought of Cozy, do they charge any fee for the service?
    0Reply
  • Kilter L.
    OP
    Salt Lake City, UT · Member since 2016 · 31 posts · 7 votes
    9y
    Steve Porcello that works! Thanks Steve for sharing!
    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    I use paypal

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    1Reply
  • Devin Deswert
    Investor · Salt Lake City, UT · Member since 2016 · 78 posts · 38 votes
    9y

    A quick review of the website shows they are still free. I would imagine they are still in startup mode and investor funded. 

    1Reply
  • Jim Adrian
    Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
    9y

    @Kilter L. or @Russell Brazil

    Could someone explain to me how they use papal or how its free?  To me rental property falls under a "business" and not "friends and family".  I have considered using paypal but why pay the fees of 2.9%?   I am totally open to the idea of using them but can't support the cost nor do I fee its right to make the tenant pay the fee.  Don't you still have to pay the 2.9% fee to get the money into your bank account?  I don't care to pay 2.9% fee twice. For $60 it will cost me, there has to be better ways out there. 

    https://www.paypal.com/us/webapps/mpp/paypal-fees

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y
    Originally posted by @Jim Adrian:

    @Kilter L. or @Russell Brazil

    Could someone explain to me how they use papal or how its free?  To me rental property falls under a "business" and not "friends and family".  I have considered using paypal but why pay the fees of 2.9%?   I am totally open to the idea of using them but can't support the cost nor do I fee its right to make the tenant pay the fee.  Don't you still have to pay the 2.9% fee to get the money into your bank account?  I don't care to pay 2.9% fee twice. For $60 it will cost me, there has to be better ways out there. 

    https://www.paypal.com/us/webapps/mpp/paypal-fees

     I get my full rent. I don't know own if the tenant sends it as friends or family or if they add money to their amount. I really don't pay any attention to it since I'm getting my full rent.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    1Reply
  • Jim Adrian
    Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
    9y

    Thanks @Russell Brazil!  Obviously I am missing something.

    1Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    A word of caution about accepting rent payments through Paypal. The person making the payments can dispute the charge, and Paypal sides with them almost exclusively. You will be out a month's rent at least.

    @Russell Brazil

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    10Reply
  • Mel M.
    Wholesaler · Charlotte, NC · Member since 2012 · 5 posts · 6 votes
    9y

    I set up Wells Fargo savings accts ( deposit only )for each house.....been doing it for years..each tenant has an acct number

    3Reply
  • Kilter L.
    OP
    Salt Lake City, UT · Member since 2016 · 31 posts · 7 votes
    9y
    Mindy Jensen great point of view! Thanks for the reminder!
    0Reply
  • Kilter L.
    OP
    Salt Lake City, UT · Member since 2016 · 31 posts · 7 votes
    9y
    Mel M. Do tenants have to go to a well Fargo branch every month or can they do so easily online?
    0Reply
  • Tim S.
    Northeast, WI · Member since 2016 · 44 posts · 13 votes
    9y
    Another problem I have read about on BP with PayPal relates to problem tenants. If they make a payment to you of $1 as a rent payment it is automatically accepted via PayPal and it counts as them making a payment. This can make it more difficult for evictions in court. Whereas with a check if the amount is not correct you don't have to cash it. I don't personally know how true this problem is but I thought I would pass on what I've read on other threads.
    1Reply
  • Scott B.
    Rental Property Investor · Puyallup, WA · Member since 2016 · 26 posts · 3 votes
    9y

    @Russell Brazil what kind of information do you need to provide the tenants for them to send rent? Only your email?

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y
    Originally posted by @Scott B.:

    @Russell Brazil what kind of information do you need to provide the tenants for them to send rent? Only your email?

     Just the email address associated with your PayPal account.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    0Reply
  • Bob B.
    Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    @Kilter L.

    They can bill pay, transfer or use an ATM 24-7.

    They have a record of the payment and no excuses for lost in the mail, etc.

    1Reply
  • Jordy ClarkPro Member
    Investor · West Jordan, UT · Member since 2014 · 45 posts · 31 votes
    9y

    If you are here in the Salt lake City area, Use KSL classified to post the ad for rent, which goes through Rentler, and they have an option that you can ACH your tenants rent out of their account and into yours. Pretty slick system. most locals here use KSL classifieds over craigslist or other online classifieds. 

    3Reply
  • Alan Walker
    Real Estate Agent · Salt Lake City, UT · Member since 2016 · 214 posts · 154 votes
    9y
    I use Venmo with my tenants. Totally free. It there are limits in terms of how much can be transferred each week. Like 3000 I think. Only became an issue when they were trying to pay deposit and first month at the same time.
    3Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    9y
    Most property management software will allow tenants to pay online. I'm charged $.25 per payment. No way I'd ever want to deal with getting a money order. Manually putting in that payment to their ledger. Deposit slips. Going to the bank etc. Even if you have just a few properties, if you ever plan on growing, get property management in ASAP and have them pay via that system.
    2Reply
  • Ingrid B.
    Salt Lake City, UT · Member since 2017 · 18 posts · 6 votes
    9y
    We have used Chase Quick Pay. As a Chase customer I receive the rent as soon as they submit the transfer (as long as they are using banks in the same network like Wells Fargo, US Bank, Chase itself etc )and no fees involved. https://www.chase.com/online/digital/quickpay.html
    0Reply
  • Joseph Pratt
    Rental Property Investor · Corona, CA · Member since 2017 · 18 posts · 16 votes
    9y
    I've been collecting rents for 10+ years and I find Cozy.co very intuitive and user friendly. I use to collect rents physically but found that dangerous and time consuming. Later, I collected rents via snail mail but postage keeps increasing and holidays delay delivery, not to mention, lost money orders are very difficult to dispute...besides, Cozy is free!
    1Reply
  • Shea SpinelliPro Member
    Rental Property Investor · Tyler, TX · Member since 2016 · 198 posts · 89 votes
    9y

    @Jordy Clark how do you like Rentler's ACH collection process? Do they stick to the 2-business day turnaround or have you noticed it taking longer from notification to funding?  I signed up for their sight and I am reviewing what they offer.  How long have you used them and what percentage of your tenants sign up for ACH on a recurring basis automatically?  Any info you have based on your experience would be great, we're trying to decide which system to start with.  Originally we were going to go with TenantCloud, but their payment service Dwolla, doesn't service non-US citizens and we have a few tenants who are here working in the hospital nearby through work Visas.  Thanks in advance.

    0Reply
  • James Brueggeman
    Milwaukee, WI · Member since 2014 · 2 posts · 0 votes
    9y

    I use paypal for 8 of my 9 tenants.  As long as the tenant links their bank account to their paypal account and sends you money via "friends and family" there is no fee.  I have had zero issues with this once the tenant sets everything up correctly.  To aid them in that I send them a very detailed list of set-up instructions.  Everyone seems to be enjoying the convenience.

    0Reply
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