Best way to accept rental payment

Managing Your Property
1yFollow

Best way to accept rental payment

Dennis O'LoughlinPro Member
Member since 2023 · 47 posts · 23 votes

We have always used property managers due to the distance of our rental properties.  However, we are going to be obtaining a couple of properties close enough to us that we will be managing them ourselves.  Does anyone use any of the bank payments like Zelle?  Security, ease of use, and lack of fees are important.  

2Reply
121 views

Most Popular Reply

Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y

No fees + security + ease of use = go collect cash rent in person!

Seriously, why would you expect to get ANY secure service for free?

FYI: most PMC software includes electronic payments via ACH - for which banks charge fees past a certain amount of transactions. So, it is NOT for free, PMCs just absorb the cost.

[email protected]248-209-6824
Logical Property Management4.9458 Reviews
WebsiteView Page
3Reply
See this reply in the discussion

12 Replies

Jump to latestLatest
  • Keith Jablonowski
    Property Manager · Lombard, IL · Member since 2013 · 99 posts · 82 votes
    1y

    A lot of people use Zelle, but I don't recommend it. It's secure, but doesn't give you control over payemts.   We use Rentvine.   Most PM softwares will also handle payments.  

    With Zelle it's either on or off.  You can't turn it off for a single tenant who you don't want to accept payments for.  You can't set it to only accept payment in full.  These both are an issue if you need to evict someone. Every time you accept a partial payment from them it delays when you can file. 

    1Reply
  • Lilly Harker
    Rental Property Investor · Indianapolis, IN · Member since 2025 · 15 posts · 14 votes
    1y

    I’d definitely recommend using a property management software over Zelle. While Zelle is convenient, it’s pretty unofficial and lacks the structure you need for proper record-keeping. With PM software, you get a full ledger, maintenance tracking, and better organization overall. I’ve used both RentRedi and Buildium—RentRedi is great for landlords managing a few properties and not trying to scale to hundreds. It’s around $150/year, but well worth it.

    Having a PM software in place also adds a professional barrier between you and the tenants, which helps set expectations and maintain boundaries.

    2Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    1y

    There are a lot of people that use Zelle, but if you are getting property handled by property management there is a lot of easy ways they do it through ACH! 

    The McKernan Group4.957 Reviews
    WebsiteView Page
    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    No fees + security + ease of use = go collect cash rent in person!

    Seriously, why would you expect to get ANY secure service for free?

    FYI: most PMC software includes electronic payments via ACH - for which banks charge fees past a certain amount of transactions. So, it is NOT for free, PMCs just absorb the cost.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    3Reply
  • Rene G.
    Real Estate Coach · LandlordSkool.com · Member since 2017 · 113 posts · 88 votes
    1y

    There's some gaps in your question...

    How long are you planning on self-managing and what class rentals do you have? What happens if you get good at managing rentals nearby, would you want to long-distance self-manage?

    BTW I've been self-managing long-distance for over 10 yrs and even when I worked and lived in Baghdad Iraq for most of the 10 yrs. Now that I'm financially free and my rentals are all within 1.5 hr drive, I never have to go to them because I figured out how to do things very hands off!

    —

    4Δ 𝓡𝓮𝓷𝓮 💪 

    The Forever Landlord

    0Reply
  • Andrew Einsmann
    Member since 2019 · 81 posts · 25 votes
    1y

    I do zelle and cash in hand for my local tenants if you can tie it all (local and distance) into one property manager software and maybe reduce your property management fees because you are now collecting the rent, that would beneficial. 

    0Reply
  • Andreas W.
    Durham, NC · Member since 2013 · 502 posts · 215 votes
    1y

    @Peter Mckernan

    ACH payments get reversed when the sender's account is under funded. Tenants who know that use this as a way to buy time. I prefer direct deposit with cash or certified checks.

    0Reply
    • Andrew Einsmann
      Member since 2019 · 81 posts · 25 votes
      1y
      Quote from @Andreas W.:

      @Peter Mckernan

      ACH payments get reversed when the sender's account is under funded. Tenants who know that use this as a way to buy time. I prefer direct deposit with cash or certified checks.


       true be wary of "professional renters"

      0Reply
  • Parris Taylor
    Investor · New York, NY · Member since 2025 · 92 posts · 71 votes
    1y

    @Dennis O'Loughlin Zelle works for some, but it has blind spots most landlords don’t think about: there’s no paper trail designed for rentals, no way to automate reminders, and zero dispute protection. Tenants missing a rent note or sending to the wrong email can turn into a bookkeeping headache.

    Keep in mind, rent collection isn’t just about moving money, it’s about building a system of accountability. The most valuable thing is having an auditable, automatic record you can point to if you ever end up in court or refinancing. Free transfers are nice, but clean records and automation are priceless! 

    0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    1y

    I use RentRedi and believe the service only costs me $150/year. There is then a $1 transaction fee when the tenants pay, higher if they opt to use a credit card. Some use credit cards anyway because their points are more valuable than the transaction fee that's charged but that's up to the tenant. I set all my tenant's payments to be $1 less than their actual rent and absorb the transaction fee. My avg rent across residential units is just over $2K/m and the small gesture of absorbing the $1 is appreciated. 

    [email protected]
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free