Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
5y
Whatever payment method you decide on the determining factor should be whether it can be reversed or not by the tenant once payment is initiated. I know people who have gotten burned with this so just something to account for.
3 Reply
Charles Phanumphai
Rental Property Investor · Denver, CO · Member since 2019 · 30 posts · 6 votes
5y
@Kayla Jones Zelle has been great for us
0 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
5y
Appfolio and most other management software will have an online portal to pay through.
0 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y
Originally posted by @Mary M.:
Originally posted by @Joe Splitrock:
Zibo has a different offering of services. They offer banking, insurance and lending options. The insurance and lending are referral or broker services, so I am sure that is where they make their revenue.
All companies that process money - whether a payroll processor, a portal where tenants can pay their rent, venmo, paypal, etc etc etc make their money by investing your money. They make a LOT of money this may. Millions and millions of $$. It is the real business they are in - everything else is fluff to get folks to use their money transfer services.

I agree. Nothing is free. If you are not paying directly, they are making money other ways. Investing money is one way, but that requires scale to make millions. Every rent payment service offers some type of premium service or uses credit card charges to make money. Cozy uses credit, background checks, credit card charges and speed pay premium users to generate income. Every business has to make money and I am totally good with that. I just cringe when people something is "free" because in life nothing is free. Someone is paying, figure out who and make sure you are ok with it.
The risk with startup businesses is they are pre-revenue. The business model intentionally loses money to acquire customers, then the monetize after they have customers. Look at what Zillow did with their charges for listings. They became the leading rental listing website charging nothing to landlords, then dropped a $10 per week charge on users.
3 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y
Originally posted by @Michael Noto:
Whatever payment method you decide on the determining factor should be whether it can be reversed or not by the tenant once payment is initiated. I know people who have gotten burned with this so just something to account for.

That really limits options, because cash is the only payment that cannot be reversed.

When you say payment is "reversing", there are two ways that can happen. The first is NSF (non sufficient funds) and the second is tenant reporting charges as not authorized (fraud). Either way, this is tenant issue, not payment system. Granted, some payment methods are harder to reverse than others.
Most every online rent payment, utility pay, mortgage pay, etc. all use ACH to process payments. ACH regulations give the consumer an option to dispute fraudulent charges and reverse payment. It can even be done 6-12 months later, although the longer the time period, the more proof of fraud required.
Venmo requires three day seasoning of bank money into the renters account before they can pay a landlord. That eliminates NSF reversing because the money is verified before sending. The tenant could still report charges as fraud and they could be reversed. It could even be worse for landlords, because a landlord is violating terms of service could mean freezing the account, unless the landlord is using a paid merchant account. Of course a merchant account offers more consumer protection, so it is a catch 22.
Zelle uses ACH to transfer funds, but verifies funds before sending. That should eliminate NSF type issues, but payments can be reversed if the tenant reports the charges as fraud.
Tenant screening is really the best way to prevent payment problems. It is easy to blame a processor, but the processor is only reversing funds because the tenant was irresponsible or reported the landlord as fraudulently taking payment.
2 Reply
Eric GoldmanBusiness Member
Lender · PA · Member since 2019 · 359 posts · 192 votes
5y
i hate cozy. bad experience using it zelle or pay pal is easy. mostly take checks to a PO box. having a property manager is nice. they handle it but obviously for fee.
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Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
5y
Originally posted by @Michael Noto:
Whatever payment method you decide on the determining factor should be whether it can be reversed or not by the tenant once payment is initiated. I know people who have gotten burned with this so just something to account for.

Any payment method -except perhaps cash -can be reversed. ACH, wires, credit card, debit card, paypal, etc all can be reversed esp if tenant paid using a CC or debit card to fund the transfer
0 Reply
Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
5y
@Joe Splitrock your commentary about it all boils down to being ACH transfers is why I just do ACH and then I get my money over night.

I will probably switch to Zelle once Zelle small business reaches my local bank tho as it is instant :)
1 Reply
Sandra Regnell
Rental Property Investor · Vancouver, WA · Member since 2014 · 68 posts · 37 votes
5y
@Tracy Cummins my tenants pay with Zelle, Venmo and PayPal. I haven’t had an issue for the past 3 years.
0 Reply
Jibu V.
Investor · Philadelphia, PA · Member since 2014 · 134 posts · 49 votes
5y
I’ve been using Cozy for years, but recently started using Innago for one of my new tenants. Innago is essentially $2/mo/unit for ACH payments, which you can absorb or have the tenant pay. While Cozy is free, I am finding Innago to be much more customizable. It also has an app that tenants can use, unlike Cozy. At least in my experience, the year-end reporting that Cozy produced for tax purposes did not always have the most accurate and complete data.

One major plus for Innago is that you can set up and sign electronic leases, including reusable templates, as well one-off documents for electric signature completely free. A stand-alone electronic document signature service would cost way more than $2/mo.

Lastly, Innago customer service has been very helpful and responsive both before and after signing up. With Cozy’s transition to Apartments.com, which seems to be very glitchy, I can’t say the same about it.

In any case, if you haven’t already signed up for Cozy, then you will be directed to Apartments.com.

1 Reply
Kayla Jones
OP
Rental Property Investor · Elton, PA · Member since 2017 · 14 posts · 13 votes
5y
Has anyone used Apartments.com? I’m starting to lean towards them because you can set up the application process, background check, lease agreement ect. Just curious for real life experience. There is alot out there and I thank everyone spending time to communicate all this info on just one simple yet complex topic!! Thank you all!!
0 Reply
Jibu V.
Investor · Philadelphia, PA · Member since 2014 · 134 posts · 49 votes
5y
Originally posted by @Kayla Jones:
Has anyone used Apartments.com? I’m starting to lean towards them because you can set up the application process, background check, lease agreement ect. Just curious for real life experience. There is alot out there and I thank everyone spending time to communicate all this info on just one simple yet complex topic!! Thank you all!!

I looked into apartments.com a few weeks ago before I settled on switching to Innago. I wanted to see if it was better than cozy. Besides the glitches when I was using their interface, the dealbreaker for me was the fact that you’re stuck with their leases if you want to use their e-signing. You cannot customize it or add any provisions of your own to their existing lease.

1 Reply
Kayla Jones
OP
Rental Property Investor · Elton, PA · Member since 2017 · 14 posts · 13 votes
5y
@Jibu V. Thank you! Makes sense!
0 Reply
Michael H.
Rental Property Investor · Houston, TX · Member since 2017 · 144 posts · 42 votes
5y
@Kayla Jones cozy.co
1 Reply
Kayla Jones
OP
Rental Property Investor · Elton, PA · Member since 2017 · 14 posts · 13 votes
5y
@Michael B. Cozy.co is now apartments.com
0 Reply
Rachael Wick
Member since 2021 · 17 posts · 14 votes
5y
@Kayla Jones We use Cozy and love it. Its free and it has really upped our tenant base even.
1 Reply
Curt Smith
Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
5y
@Kayla Jones with many doors and many years of collecting from a range of tenant types (unbanked)...
The #1 need is reports. Reports of rent collected going back years if needed. You will appreciate reports ti figure arears, taxes total rent for a year etc
Zelle etc are useless fir a professional landlord and shoulder be considered even for a one door beginner imho.
Free should not be your #1, ease of both sides using the tool, works on cell phones and great reports.
There is no on landlord oriented tool. Theirs many!
I suggest looking for a combination of collects application, credit check and collects rent and has reports. Theirs lots here too. Many will tip their tool. I will too.
After back and forth over the years we've moved 100% back to erentpayments.com. yup!
Many will tip cozy.co. I didn't like it. To each their own. :)
0 Reply
David FloresPro Member
Rental Property Investor · Morgantown, WV · Member since 2016 · 236 posts · 135 votes
5y
@Kayla Jones
Cozy.co is by far the best. Its free and really easy to use. Due to growth we have switched over to buildium. But i absolutely love Cozy. Great for investors who have below 20 units id say
1 Reply
David FloresPro Member
Rental Property Investor · Morgantown, WV · Member since 2016 · 236 posts · 135 votes
5y
@Michael Plante
Only fee is credit card payments, but that comes out of the tenants pocket on cozy
2 Reply
Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
5y
@Kayla Jones
Cash app and Venmo are great options for collecting rent online with no fees (I did talk to a real estate attorney) but consult your own. The only problem with online payment services like cash app and Venmo is if you're evicting them and they pay you a partial payment of the rent you can't accept that because then they paid you and you can't evict for non-payment of full rent, you have to go back to square one of the eviction. For example, if rent is 800 they don't pay for a month you are evicting them and they pay you $20 and you accept it you have to go back to the beginning of the eviction process because that dollar amount is wrong you can't just full steam ahead so you have to decline payments from tenants if you are evicting or accept and send back if it's a service you can't decline it could cause problems.
[email protected]614-412-4565
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1 Reply
Paulo Correia
Member since 2018 · 4 posts · 2 votes
5y
My tenants pay with Zelle and Venmo..Zelle is better because it goes directly to your bank account and faster
0 Reply
Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
5y
@Kayla Jones
If they pay the full amount, though, you have to accept. Don't accept partial payments when dealing with online payment apps like Venmo and cash app.
[email protected]614-412-4565
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Sam Harrell
Real Estate Agent · Knoxville, TN · Member since 2016 · 21 posts · 5 votes
5y
We use Buildium and it is incredible for us. It can collect rents and charge automatic late fees. It is better for multiple properties. I know that quickbooks has an invoicing feature. I think you can set it up to be recurring. Maybe there is a way to get a rent collection software out of your accounting software.
0 Reply
Anthony Calek
Specialist · Chicago US and Hittnau Switzerland · Member since 2019 · 20 posts · 13 votes
5y
@Kayla Jones

All of my tenants are given the following options (50+).

1. Direct Deposit at the bank. Safest method though it requires they bring a check and fill out a deposit slip.

2. ACH payment. As safe and if not more secure than a direct deposit.

3. Wire transfer. Almost as safe as the two previous methods. The tenant is required to pay a $20 fee though so most have opted out of this method.

4. Zelle. Tenants are free to use this service but they are required to do the setup and it’s on them if the money doesn’t end up in our account.

I would not use Venmo or anything like that because I don’t feel it’s secure enough and if the money goes missing the tenant and myself are at the mercy of their policies

I don’t have any issues with the rent payment services though I question their endgame and their policies as they relate to lost payments.

I try to accommodate my tenants as much as possible, though I don’t really want to spend more than a few hours a month dealing with accounting for rents. I use Buildium to keep track of the rent-roll and issue late payments.

Best Regards

Anthony Calek
0 Reply
Joy Allen
Member since 2020 · 31 posts · 13 votes
5y
@Kayla Jones
I like Zelle and so do my tenants. We have an understanding that if it's after the 5th they add 50.00.
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