3 Ways to Collect Rent from Your Tenants
If you’re a landlord, collecting rent is probably pretty high on your priority list. Here are the pros and cons of a few different ways to collect rent, including the best apps for landlords to collect rent.
Collecting Rent via Checks
Checks are a classic way of collecting rent, but they do take longer to process than other methods. If you want to guarantee you receive it on its due date, it may not be the best way to collect rent.
Pros of collecting rent using checks
Provides a proof of payment
Safer than cash (can be voided and replaced)
Free to deposit
Can be collected in person
Cons of collecting rent using checks
Takes time to mail and clear
Potential to bounce
Extra cost for tenant
Requires a bank account
Collecting Rent via an App [Venmo]
Venmo is a popular mobile app for sending money (up to $20k per week). Its convenience and speed makes it a useful tool and one of the best ways to collect rent.
Pros of collecting rent with Venmo
Free to use
Instant payment
Can be linked to bank account or credit card
Convenient and popular with younger generations
Cons of collecting rent with Venmo
Extra fees for credit cards
Extra fees for instant deposit
Requires a bank account
Collecting Rent via a Property Management Portal
There are a number of online property management tools and rent collection apps, including Avail, Payyourrent.com, and Tellus. Property Management Portals offer a number of additional tools on top of rent collection that make them useful for landlords, though there are some risks.
Pros of collecting rent with a Property Management Portal
Set up automatic withdrawal
Reminder notifications
Bonus tools like tracking work orders and roommate splitting
Cons of collecting rent with a Property Management Portal
Fees for service
Often requires tenant to create a new account
No established industry standard
Not federally insured