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As more and more financial transactions are performed virtually, landlords are moving away from paper checks and towards collecting rent electronically. Some use peer-to-peer apps to pay rent, such as Zelle, PayPal, or Venmo. However, many have questions about whether these services are the best choice. While payment apps are convenient to use, there are some drawbacks as well. To that end we’ll outline the strengths and weaknesses of using each of the common payment apps to pay rent. We also discuss online rent collection alternatives that independent landlords can use.
Should I Let Tenants Pay Rent with Venmo?Venmo is a mobile payment service owned by PayPal, with particular focus on person to person transfers. In short, it allows users to send money to others via a mobile app. You can transfer money from your bank account, as well as your debit card, credit card, or Venmo balance. The money you receive is then added to your Venmo balance. You can either keep it there or transfer it to your bank account. Pros of Using the Venmo App to Pay Rent
Cons of Using the Venmo App to Pay Rent
Should I Let Tenants Pay Rent with Zelle?Zelle is a mobile peer-to-peer payment app that’s easy to use and transfers funds comparatively quickly. It allows you to send payment directly from one bank account to another. It’s a particularly good way to send payment to somebody you already know. Pros of Using Zelle
Cons of Using Zelle
Landlord-Specific Rent CollectionWhereas we’ve written many posts on full-featured property management software, some of our readers really only want a tool for collecting rent. Our partners at PayRent have created a tool focused on specifically on that need. Should I Let Tenants use PayPal to Pay Rent?In contrast to other peer-to-peer systems, PayPal allows you to send and receive payments both locally and internationally. In order to start receiving payments, all you need to do is set up a PayPal account, which is free and only requires an email address and some basic details. Pros of Using PayPal
Cons of Using PayPal
Full-Featured Property Management SoftwareIncreasingly, landlords see the value of choosing one tool to help streamline advertising, screening, rent payments, leasing, accounting, and more. Amongst the many products we’ve written about, our partners at Avail and RentRedi do a great job filling these needs. Collecting Rent Using Property Management AppsAt this point many landlords and renters think using peer-to-peer apps to pay rent is a cheaper, simpler, and more effective way to receive online rental payments. However, we feel that using a property management software product is the best way to collect rent. To illustrate, here are the primary advantages we see in using property management software to manage rentals:
Hybrid or Flat-Fee Property ManagementIn recent years new services have been cropping up to occupy the space between self-management and hiring a traditional property manager. At this point, landlords have choices about which roles they want to keep and which they want to out-source. Our partners at Hemlane and Marble , for example, have created tools that give landlords great flexibility in managing their properties.. Landlord Gurus TakeawayPeer-to-peer payment services are convenient and well known, but have limitations and lack many features useful to rental property operations. They are basically intended to be for personal use and landlords may be operating outside of the terms of use if they use these apps to pay rent. We recommend choosing a property management software tool that provides features specifically designed for the needs of rental property owners. Also Read: Why Landlords Should Use An Online Rent Payment Service Featured Products for Collecting Rent ElectronicallyRental property owners and managers have a wide range of needs, and many will find there are better options than using peer-to-peer payment apps to pay rent. Depending on what your circumstances you’re up against, here are a few services we’d suggest. A-La-Carte App to PayRent:
Full Featured Property Management Software:
Hybrid & Flat-Fee Property Management Services:
Disclosure: Some of the links in this post are affiliate links and Landlord Gurus may earn a commission. Our mission remains to provide valuable resources and information that helps landlords manage their rental properties efficiently and profitably. We link to these companies and their products because of their quality, not because of the commission. Tagged #collectrent, #rentcollection, landlord accounting software, property management software, Rental property management software Is it okay to pay rent with Zelle?If your landlord utilizes Schedule My Rent as their rental management software and you are enrolled with Zelle® directly through your financial institution, you can choose to pay your monthly rent with Zelle®.
What is the most secure way to pay rent?Cashier's checks and bank drafts are secure forms of physical paper payment that a tenant gets from their financial institution, like a bank or credit union. Financial institutions write cashier's checks and bank drafts against their own funds instead of the tenant's, guaranteeing a landlord's ability to cash them.
Should you pay rent over Venmo?There are some risks to having a tenant pay via Venmo. They might send the money to the wrong person. In addition, you cannot decline payments on Venmo, which could impact eviction proceedings.
Is it safe to pay rent through PayPal?In a nutshell, according to the User Agreement and Terms and Conditions of PayPal, real estate transactions are not allowed on the platform. Since rent falls under real estate, paying it via PayPal is practically forbidden. However, if your landlord has a business account, you might be able to execute a transaction.
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