How to collect Rent

Question

I finally secured my first duplex. Yes! I inherited a tenant who gets social security on to a government card. What’s the best and CHEAPEST way to collect rent? If he does not have a bank account? Everything goes to this prepaid card. Give me some tips on what might be the most cost effective and ease of use way to collect rent

Drew Sygit · Answer

You know there's a "Vote" hyperlink?

Drew Sygit · Answer

How were they paying the previous landlord?

Do NOT be intimidated by the tenant wanting you to do things their way!

Funny story:

Took over management of a property and existing tenant was wheelchair-bound. They were on SSI, which was direct deposited to their bank.

Tenant refused to send us rent, claiming we HAD TO come pick up their rent in person as they had no way to go anywhere to pay us.

Our team does NOT pick up rent, so they were stumped.

I merely asked, "how is the tenant going to pay us at their home?"

Tenant's response was, "via money order".

I then asked. "how are they getting the money order?"

That showed the tenant had the ability to pay via our terms and we did NOT need to pick up the rent.

Ed Barone · Answer

JoelCongrats on the first duplex!

I’d first find out exactly what type of government card the tenant has. If it provides routing and account numbers and supports ACH debits, that will probably be the cheapest way for them to pay rent.

If not, check whether the card can be used as a prepaid debit card for online purchases. Many rent collection platforms can process debit cards. RentRedi is one option (full disclosure, I’m a co-founder), but there are others as well.

I’d compare the cost of paying by debit card with any available cash payment options. The goal should be to make it easy for the tenant to pay without requiring them to open a traditional bank account, while still giving both sides a clear record of payment.

Hope to see you at BPCON in Orlando!

Ed

Aditya Kumar · Answer

Since you secured your first duplex, I'm not sure how viable it is right now to subscribe to a specialized property management software like Buildium, AppFolio, or Baselane. Yes, you do need to pay a monthly subscription, but receiving rent through them is nearly zero cost/negligible in fees. The tenant can pay from any gas station or convenience store using a QR code on their tenant app, and it comes straight to you. The catch is you need to be subscribed to the property management/accounting software for this to work. You can also enter the prepaid card details into the tenant app these platforms provide, and the tenant can choose to either send a one-time payment or set it up as recurring autopay — same as any other card. This might not be feasible right now, but it may eventually become necessary as your portfolio grows.

Besides that, some other options you have:

• Money order. Cheap (usually $1-2 at a post office or Walmart), gives you a paper trail, and doesn't require either of you to have a bank account tied to it. A bit more manual each month, but reliable and low-cost.
• Cash, with a receipt. Free, but make sure you're issuing a dated, signed receipt every single time — for your own records and legal protection, not just the tenant's.
• Venmo or Cash App (not Zelle). The tenant can load their prepaid card balance directly into Venmo or Cash App — both work as standalone digital wallets and don't require a bank account behind the card. You'd sign up for either of these yourself and receive payments there. Zelle won't work for this, since it only operates bank-account-to-bank-account with no standalone balance.

Joel Thomas · Answer

@Drew Sygit nice story, I'm going the Venmo route and I will see how it goes

Tabish Masood · Answer

Congratulations on the duplex!

If the tenant receives Social Security on a prepaid government card and doesn’t have a traditional bank account, I would focus on whatever method is easiest for them while still giving you a clear payment record.

A few options to consider:

• Money orders or cashier’s checks: Very common for tenants without bank accounts and easy to document.
• Cash deposits directly into your bank account: Some banks allow tenants to deposit cash into the landlord’s account, though policies vary.
• Walmart MoneyCenter or similar bill-pay services: Many tenants already use these services.
• Cash App or PayPal: Some prepaid cards work with these apps, although it’s worth confirming compatibility first.
• Rent collection platforms that accept debit cards: Some property management apps allow tenants to pay with a debit card, but transaction fees may apply.

Since this is an inherited tenant, I’d start by asking what method they’ve been using successfully. If the current system has worked and payments have been consistent, there may not be a reason to change it immediately.

Whatever method you choose, make sure you provide receipts and keep a written record of every payment. The cheapest option isn’t always the best if it creates confusion or poor documentation later.

Jimmy Lieu · Answer

Great question, Joel, and congrats on your first duplex! If your tenant is getting paid on a prepaid debit card, I'd first see if they can use it to make payments through a service like Zelle, Cash App, or another rent payment platform, since many prepaid cards support those. If that's not an option, money orders are still a simple and inexpensive backup, even though they're a little less convenient. Whatever method you choose, I'd try to keep it consistent and document every payment with receipts or a ledger. Making it easy for the tenant while keeping good records for yourself usually leads to the fewest headaches. Happy to connect and answer any questions you have!

John Morgan · Answer

They can move their money from their card to Cash App, Venmo, chime, PayPal, Apple Pay etc. So I'll take payment with any of these methods. Or even a cashiers check one guy mails me.

I also had someone like this that didn't have a bank account or even an email. She paid me with her netspend card every month. It was loaded onto my netspend Visa card and I used it like a debit card or transfered it to my bank from my card.

How to collect Rent

How to collect Rent

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