Having your tenants pay rent on time is the most critical aspect of running your landlord business. You probably already know by now the importance of tenant screening to ensure you pick a great tenant who can afford to pay rent on time.
But are you making the rent collection process easier and safer for you and your renters? Collecting rent online is becoming increasingly popular as contactless payments have become the new normal. Fortunately, owning a rental property can generally be a contactless business, and collecting rent online will help you create a seamless virtual rental process.
Ways to Collect Rent Online
So, what’s the best way to collect rent online? While landlords have used several rent payment options for decades, as property management becomes more virtual and distant, switching to online options makes sense.
With so many apps and programs out there, it’s crucial to determine what will work best for you and your business. Here are the most common ways to collect rent online:
1: Online Property Management Software
If you already use software to collect rental applications, screen your tenants, and market your property, it also makes sense to collect your rent through the same platform. This type of rent payment is often straightforward – both you and your tenant will only have to set up the process once. Some platforms make it even easier by allowing automatic payments.
Additionally, collecting rent through property management software is secure, fast, and there is no handling of cash or checks – the funds will be deposited directly into your account.
2: Money Transfer Apps
Another standard method many people use is a money transfer platform, such as Venmo, CashApp, PayPal, or GoogleWallet. These apps are linked to bank accounts or debit cards and are popular among younger renters. While they are simple to use, you’ll have to transfer the money from your platform account to your existing bank account – making it more manual and easier to mess up. Plus, these platforms now charge business fees that cut into your bottom line as a landlord.
Unfortunately, money transfer apps aren’t designed to do much more besides transfers, which means you miss out on other helpful features such as automatic reminders, automatic charges, and storage of receipts and documents. Additionally, these platforms aren’t built for paying rent and might end up causing issues with getting payments delivered on time.
Why You Should Switch to Online Rent Payments
If you want an easy process that is ideal for your business and easy for your renters, collecting rent through a property management system is your best bet. Having a system where everything is in one place for your rental property business will ensure you are organized and efficient. Here are some of the perks of using an online rent payment system:
- It is secure and reliable.
- You can collect additional payments such as security deposits and late fees.
- The platform will send automatic reminders to tenants.
- Generally, it’s easier and faster for tenants.
- It’s free for landlords and cheap for tenants.
- There is no contact or collection necessary.
- You can keep all of your financial records in one place.
How to Collect Rent Online
Ready to switch your rent collection method over to an online property management system? It’s very easy to get started and see the rent rolling in on time every month. If you already have a landlord account, you’re ready to accept rent payments today. Here is our complete guide on how to collect rent online through TurboTenant.
With TurboTenant’s rent payment system, setup takes less than five minutes once you answer verification questions and securely connect your bank account information for direct deposits. Upon setup, you can see the status of your charges and be notified when your renter pays or if they’re late on their payments. Managing rent payments through TurboTenant also allows you to keep the important payment information, receipts, and documents all in one place in your account to easily reference or double-check payments. Finally, we saved the best for last – collecting rent online is free for landlords and will save you time and stress.
Online rent payments are also easy for your tenants:
- Renters can securely set up their payment information in five minutes.
- They can choose if they want to pay for their rent via bank transfer (ACH), debit card, or credit card.
- Renters can also pay with one click either on their laptops or phones and receive reminders if they have unpaid charges.
- Through TurboTenant, tenants have the option to report their on-time rent payments to TransUnion to help build credit history.
Overall, switching to online rent payments will enhance your rental business for the better. It will save you time, worry and will be convenient for tenants. Online tools have allowed the rental process to become completely virtual, and collecting rent online is another easy step that will contribute to your success as a virtual landlord. Start collecting rent online today.
FAQ for Collecting Rent Online
Do I have to have an online lease to collect rent payments online?
No, you do not have to have an online lease to collect rent payments online. If you have a paper lease, it’s always good to scan it and keep a digital copy; however, you can collect rent online as long as you specify how you will be collecting it in the lease agreement.
What if some tenants want to pay online and others don’t?
While some renters might be unfamiliar with online rent payments, you can easily explain the process to them and show them how to set up their payments securely. You should stick to one method of rent payment collection for all your tenants so you can stay organized. However, if you do end up accepting a different form of rent payment for a specific renter, you can still keep track of offline payments and document them in your TurboTenant account.
What about collecting rent payments during an eviction?
If you are going through the eviction process, make sure you do not accept rent payments from a tenant – accepting even a small payment could impact the proceedings and stop the eviction process altogether.
Is there a fee for me to collect rent online?
There is no fee for landlords to collect rent online – it is free to set up rent payments. The only fee involved depends on the renter’s payment option; renters pay a $2 ACH fee for bank transfer and a 3.49% processing fee if they pay with a debit or credit card.