Trying to find payment software at no cost to tenant

Member since 2023 · 39 posts · 11 votes

I am a rookie with only 1 rental property as a house hack and I was using rent redi as my payment software until I realized that it charges the tenant a 10 dollar fee every time so goes and pays rent and I don't like that at all if I already paying them every month through my pro membership. I just wanted to know if there was a good payment system out there that doesn't charge the tenant for paying rent and preferably has the same capability of rent redi

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Mark F.

Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes

Apartments.com will do everything you need and it's free for you and the tenant. It automatically charges late fees once you set it up. I have 3 properties on it for 6 units without issues. I plan on using them still once I aquire another small Multifamily. It has other features as well like maintenance request, automatic reminders, etc. The downside would be it takes about 3 to 4 business days to receive the rent money. This isn't an issue as I push all my mortgages to pull from my bank on the 15th of every month for free.

Cue Nathan for his lengthy response. Needs to be a sticky. There's zero reason to be paying money for a rent collection system unless you plan on scaling pretty big or already have a bunch of units

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Ray Hage
Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
2y
If you only have one rental property, why do you bother with the payment software? I would understand if you had many units but for 1 rental property, I think it would just be easier for them to pay through Zelle, Cashapp, Venmo, etc. I have several tenants and still don't use software
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Kiefer Cheney
OP
Member since 2023 · 39 posts · 11 votes
2y
Quote from @Ray Hage:

If you only have one rental property, why do you bother with the payment software? I would understand if you had many units but for 1 rental property, I think it would just be easier for them to pay through Zelle, Cashapp, Venmo, etc. I have several tenants and still don't use software

But wouldn't it be easier if you had a software to keep track of everything? if I only used zelle right now it would be completely fine but doesn't it get annoying when you have multiple rents to keep track of?
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
2y
There isn't much to keep track of-did they pay or didn't they. If it is a house hack, they live with your so get a cheque from them on the 1st of the month. I have multiple rentals and tenants pay multiple ways (etransfer or postdated cheques).
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Ray Hage
Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
2y
Quote from @Kiefer Cheney:

Quote from @Ray Hage:

If you only have one rental property, why do you bother with the payment software? I would understand if you had many units but for 1 rental property, I think it would just be easier for them to pay through Zelle, Cashapp, Venmo, etc. I have several tenants and still don't use software

But wouldn't it be easier if you had a software to keep track of everything? if I only used zelle right now it would be completely fine but doesn't it get annoying when you have multiple rents to keep track of?
It's not really a lot of work to keep track of everything especially for one unit. I keep track of everything in Excel and it's not that much work imo. However, I also do like doing the analysis on my properties so I suppose it is "fun" for me, at least as much as fun as a computer-based task could be.
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Chris Kersey
Real Estate Agent · Houston, TX · Member since 2022 · 135 posts · 84 votes
2y
I understand why you want it @Kiefer Cheney, it automates rent collection AND late fees if needed. It also keep everything organized. I found Hemlane to be very useful in managing my properties. I do no think it charges the tenant for rent. I'm running 5 units currently through hemlane and it costs me about $45/m. To add units is very easy and inexpensive. I'm sure there are many other software systems out there but after researching, this is the one I landed on. Hope this helps.
- Chris Kersey
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Kiefer Cheney
OP
Member since 2023 · 39 posts · 11 votes
2y
Quote from @Chris Kersey:

I understand why you want it @Kiefer Cheney, it automates rent collection AND late fees if needed. It also keep everything organized. I found Hemlane to be very useful in managing my properties. I do no think it charges the tenant for rent. I'm running 5 units currently through hemlane and it costs me about $45/m. To add units is very easy and inexpensive. I'm sure there are many other software systems out there but after researching, this is the one I landed on. Hope this helps.
- Chris Kersey
Thankyou does hemlane make it free for the tenant to pay rent?
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Chris Kersey
Real Estate Agent · Houston, TX · Member since 2022 · 135 posts · 84 votes
2y
I believe so but you would want to confirm with them
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Tim Miller
Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes
2y
You can try Innago, they charge $2 for ACH & 3% for credit cards. You have the option of paying this yourself or have the tenant pay it. We pay the $2 for ACH but if the tenant wants to use their credit card they have to pay.
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Mark F.
Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes
2y

Apartments.com will do everything you need and it's free for you and the tenant. It automatically charges late fees once you set it up. I have 3 properties on it for 6 units without issues. I plan on using them still once I aquire another small Multifamily. It has other features as well like maintenance request, automatic reminders, etc. The downside would be it takes about 3 to 4 business days to receive the rent money. This isn't an issue as I push all my mortgages to pull from my bank on the 15th of every month for free.
Cue Nathan for his lengthy response. Needs to be a sticky. There's zero reason to be paying money for a rent collection system unless you plan on scaling pretty big or already have a bunch of units
2 Reply
Ryan KellyBusiness Member
Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
2y
@Mark F. I second Apartments.com. We’re running collection on 8 doors and no charge to either side.
[email protected]512-674-5478
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Go to your bank and ask for instructions for your tenant to set up direct deposit into your account. It's free and easy.
Most investors don't need software until they have 5-10 rentals. You only need a place to track tenant information, payment history, maintenance, etc. You can easily do this on a spreadsheet, and it will take less time to track than finding and learning new software. If the software is not simplifying your life or making you more accurate, you shouldn't use it. Go to Etsy and search for "rental property tracker," and you will find hundreds of nice spreadsheets to track 10-20 rentals, usually for under $10.
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Kiefer Cheney
OP
Member since 2023 · 39 posts · 11 votes
2y
Thankyou everyone for your responses, it might seem a little weird that I want a software to track everything when I have only 1 rental but even if It helps me just a sliver it makes a world of difference for me and plus I also want as much time as I can get to mess around with software and perfect it before I have a bunch of rentals
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Craig Janet
Member since 2019 · 223 posts · 261 votes
2y
You should open a separate bank account for all your rental activities. That is one of the easiest accounting tools there is. Everything going in and out will all be recorded on your bank statements. So it shouldn't matter how the tenant pays, just deposit it in the rental account and there is your record.
For folks who aren't very tech savy or just like paying cash, I give them my account number and they can go to any branch and deposit the rent.
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Alecia LovelessPro Member
Member since 2019 · 3k+ posts · 2k+ votes
2y
@Kiefer Cheney I have 25 units and still use Venmo, Cashapp, facebook pay and Zelle.
I tried switching over to a software platform and received a lot of pushback regarding fees and tenants who did not trust an App that they knew nothing about.
I utilize a few spreadsheets for tracking.
I don’t plan on changing anything Soon.
1 Reply
Meaghan Lugo
FL · Member since 2024 · 7 posts · 2 votes
2y
We use RentRedi and the tenants pay $1 or 3% if they use a credit card. We have opted to pay the $1 fee for them for the first year but with each new lease they pay it themselves. We haven't any pushback or any issues. Id reach out to them about the $10 fee, they're customer service has been very helpful with us. Otherwise, with 1 tenant zelle etc as others have mentioned isn't a bad option.
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Frank Barletta
Rental Property Investor · New York, NY · Member since 2023 · 163 posts · 95 votes
2y
Hey @Kiefer Cheney - In many states, you must legally provide at least one free method to pay rent.
Are you looking for management software or a digital way to collect payments?
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Kiefer Cheney
OP
Member since 2023 · 39 posts · 11 votes
2y
Quote from @Frank Barletta:

Hey @Kiefer Cheney - In many states, you must legally provide at least one free method to pay rent.
Are you looking for management software or a digital way to collect payments?

I guess I am looking for management software because I really want the rent collection but I also love the fact that I can have multiple tenants info, send in repair request ect.
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Frank Barletta
Rental Property Investor · New York, NY · Member since 2023 · 163 posts · 95 votes
2y
Avail or Buildium should be good enough for you.
2 Reply
Peter W.
Member since 2020 · 351 posts · 329 votes
2y
Quote from @Kiefer Cheney:

Quote from @Frank Barletta:

Hey @Kiefer Cheney - In many states, you must legally provide at least one free method to pay rent.
Are you looking for management software or a digital way to collect payments?

I guess I am looking for management software because I really want the rent collection but I also love the fact that I can have multiple tenants info, send in repair request ect.
If you are planning on scaling it makes sense to figure out the right software/tools that works for you. I think ach works best for both parties so getting low cost ach makes sense.

i went with apartments.com then got a tenant who wants to pay cash and only communicates via text.
1 Reply
Kiefer Cheney
OP
Member since 2023 · 39 posts · 11 votes
2y
Quote from @Peter W.:

Quote from @Kiefer Cheney:

Quote from @Frank Barletta:

Hey @Kiefer Cheney - In many states, you must legally provide at least one free method to pay rent.
Are you looking for management software or a digital way to collect payments?

I guess I am looking for management software because I really want the rent collection but I also love the fact that I can have multiple tenants info, send in repair request ect.
If you are planning on scaling it makes sense to figure out the right software/tools that works for you. I think ach works best for both parties so getting low cost ach makes sense.

i went with apartments.com then got a tenant who wants to pay cash and only communicates via text.
I’m curious do you allow your tenant to pay in cash?
0 Reply
Francisca Mac
Investor · Charleston · Member since 2024 · 11 posts · 5 votes
2y
Every book I have read and listened to on say to NEVER allow your tenants to pay cash. Could cause you issues with taxes etc later. I am new too and plan to use an app. Was going to use RentRedi. Glad I saw your post here. Now I know to look for something that does not charge the tenants.
1 Reply
Kiefer Cheney
OP
Member since 2023 · 39 posts · 11 votes
2y
Quote from @Francisca Mac:

Every book I have read and listened to on say to NEVER allow your tenants to pay cash. Could cause you issues with taxes etc later. I am new too and plan to use an app. Was going to use RentRedi. Glad I saw your post here. Now I know to look for something that does not charge the tenants.
I have also been told never to allow cash and one of those people was Brandon on the pod cast on in his books as well but there are a couple I am looking at right now and one of those is apartments.com and it seems to be good especially since it is completely free for the landlord and the tenant
1 Reply
Peter W.
Member since 2020 · 351 posts · 329 votes
2y
Quote from @Kiefer Cheney:

Quote from @Peter W.:

Quote from @Kiefer Cheney:

Quote from @Frank Barletta:

Hey @Kiefer Cheney - In many states, you must legally provide at least one free method to pay rent.
Are you looking for management software or a digital way to collect payments?

I guess I am looking for management software because I really want the rent collection but I also love the fact that I can have multiple tenants info, send in repair request ect.
If you are planning on scaling it makes sense to figure out the right software/tools that works for you. I think ach works best for both parties so getting low cost ach makes sense.

i went with apartments.com then got a tenant who wants to pay cash and only communicates via text.
I’m curious do you allow your tenant to pay in cash?
New York state requires landlords to accept cash as payment.
0 Reply
Nathan MillerPro Member
Property Manager · Grants Pass, OR · Member since 2009 · 429 posts · 201 votes
2y
Quote from @Kiefer Cheney:

Thankyou everyone for your responses, it might seem a little weird that I want a software to track everything when I have only 1 rental but even if It helps me just a sliver it makes a world of difference for me and plus I also want as much time as I can get to mess around with software and perfect it before I have a bunch of rentals

If you plan on getting more rentals in the future, then you are on the right track of starting with good software now that can grow with you. $10 to the tenant to make a payment certainly seems excessive in your current solution. You'll find, among the mature software out there, that there are two camps:
Camp 1: The tenant pays the software bills for you you with payment processing fees, or tenant screening fees, or other fees. You are experiencing this now. As I'm sure you've identified, it's not the most professional look to your tenants.
Camp 2: You pay for the software, typically a per-unit cost, and the software includes payment processing within it. This tends to be more mature platforms like Appfolio, Buildium, and Rentec Direct.
I would recommend trying out free trials of each platform that checks all of your boxes, and give them a trial to see which feels best to you. Also try out the customer service of each, because the quality of service varies greatly between platforms.
You are on the right track! Good luck growing your portfolio.
ps. I see recommendations to open accounts and give your tenants your banking information, or use consumer point-to-point apps like Venmo, in these forums. I advise against that because once they have your deposit account information or venmo account, they can deposit whatever they want in there, even if it's $1. If you ever find yourself in an eviction situation and they deposit $1, that can postpone your eviction and cause you to lose extra months of rent. A good software solution will allow you to define what payments you will accept from the tenant.
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Mary Smith
Rental Property Investor · Member since 2021 · 384 posts · 197 votes
2y
I second @Tim Miller I suggest you check out Innago. It is a free property software for landlords and they charge tenants $2 for every ACH transaction, but you can take this fee on instead of having your tenant pay in this case.
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