Use PayPal to collect rent?

Salt Lake City, Utah
Salt Lake City Real Estate Forum
9yFollow

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
0Reply
158 views

Most Popular Reply

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
See this reply in the discussion

38 Replies

Jump to latestLatest
  • Account Closed
    Investor · Bluffdale, UT · Member since 2017 · 1 post · 0 votes
    8y
    I use Venmo and love it. I use the automatic generated email as a receipt to them. I've looked into tenant cloud but haven't made the switch yet. It seems to have more options the cozy
    0Reply
  • Vadim Shapiro
    Real Estate Investor · Baltimore, MD · Member since 2014 · 6 posts · 0 votes
    8y

    I use Buildium for all my tenants except one lady who is very old and does not have a smartphone or computer. She has been mailing in money orders (her portion of section 8 payment) but I really dont like relying on mail. Has anyone tried using paypal cash? It gives a separate account number that the tenant can take to many places like 7-11/CVS/Rite aid, Etc and give cash that will be deposited directly to the a paypal account. Seems like the only fee is a one time cost of $3.95.

    0Reply
  • Tanner Morrill
    Property Manager · Nashville & Salt Lake City · Member since 2015 · 78 posts · 20 votes
    7y
    Originally posted by @Mel M.:

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

    This may or may not be a great way or "proving" that you've been receiving rent. I had a tenant deposit cash into my checking account monthly and one stupid HELOC banker wouldn't accept that as proof of rental income. Be careful. I think my banker was an idiot.

    0Reply
  • Alan Walker
    Real Estate Agent · Salt Lake City, UT · Member since 2016 · 214 posts · 154 votes
    7y

    I use Venmo for my tenants and for my contractors.  Easy and most people are already using it, so they don't have to learn a new system.  ACH sounds interesting though.  @Jordy Clark, do you do that?

    0Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    7y

    In Canada you can send and receive email money transfer. It is automatically deposited into your bank account instantly for most banks. Some banks up to $3000 a day.. 

    0Reply
  • Tyler Steele
    Salt Lake City, UT · Member since 2018 · 1 post · 0 votes
    7y

    I use cozy.co to collect, screen tenants, and other management. 

    How do you all send deposits back to tenants after they move out? Snail mail, venmo, paypal??

    0Reply
  • Jennifer Guertin
    Baltimore, MD · Member since 2017 · 17 posts · 2 votes
    7y

    If anyone has instructions for tenants (and new owners like me) to secure rent with no fees for either party can you pls share?  THanks, Jennifer

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    7y
    Originally posted by @Tyler Steele:

    I use cozy.co to collect, screen tenants, and other management. 

    How do you all send deposits back to tenants after they move out? Snail mail, venmo, paypal??

     certified check, certified mail w/ signature confirmation...

    0Reply
  • Ben K.Pro Member
    Member since 2019 · 18 posts · 1 vote
    7y

    I currently have my tenants mail their rent check to my PO Box. Some times it's a hassle and I get all kinds of excuses for why it doesn't get put in the mail (as if they couldn't clothespin the envelope with their rent check to their mailbox for the mailman to pick up when they're making deliveries). I even had one tenant that kept putting their own address in as the mailing address, and putting my PO Box in as the return address, and couldn't figure out why their rent check kept coming back to them, she thought I kept returning it to her. Apparently they don't teach people how to address an envelope anymore.

    I have kind of been interested in using PayPal to receive rent payments. I've used PayPal a handful of times to make purchases, but I've never used it to receive funds. @James Brueggeman you said you give your tenants a very detailed list of setup instructions oh how to set up their payment side of the account so you don't get charged the fee; would you mind sharing those instructions that you give to your tenants?

    I see QuickBooks allows you to add a PayPal app (I just noticed it because I'm thinking about switching to using QuickBooks). I wasn't sure if having the PayPal app with QuickBooks would help make things even easier.

    Is there any downside to using PayPal to collect rent? I saw one person say that a tenant could send $1, even if their rent is $500, and PayPal will register it as paid. Another person said a tenant could pay their rent in full, and then dispute the charges and PayPal usually sides with them most of the time. Do they then take the money out of your account and give it back to the tenant, and if you don't catch it then you're out a months rent? Are these real issues?

    0Reply
  • Taylor Chiu
    Real Estate Agent · Salt Lake City, UT · Member since 2014 · 473 posts · 230 votes
    7y

    I've used several options for my rentals (although I wish they would all pay the same way!):

    • Cozy.co - free, but takes 3-5 days to transfer to my account
    • Venmo - free, limit on weekly transfers to bank account (around 2500-3000)
    • Paypal - free (you have to have them pay as "friends or family" to avoid a fee, which also has the benefit of them voiding their ability to dispute the transaction)
    • Money order - Ugh, hate this one. But some tenants don't really have / know how to use a bank account
    • Chase Quickpay / Zelle - Haven't had a tenant pay through this, but I've used it to pay contractors. Is quick and easy, they don't have to have a chase account to do it
    • Cash - not preferrable....
    • Check - not my favorite, but most bank apps have mobile check deposit ability
    2Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free