In today’s modern age, collecting rent via checks, cash payments, or money orders can lead to unpaid rent, delays, disorganized paperwork, and more. If you really want to leverage the best way to collect rent as a landlord, you must get your business online. And the great news is that online rent collection has never been more accessible.
Some platforms even offer all-in-one property management services, which allow you to handle tenant information, tenant screening, late fees, maintenance requests, lease agreements, rent reminders, and more. With the help of property management tools, landlords can streamline the entire rent-collecting process while adhering to tenant laws.
Using these features will simplify rent payment tracking, automate rent collection, and make the entire process more secure. With an all-in-one property management solution like TenantCloud, you can quickly receive rent payments from your tenants on the first of each month, even accessing tools like a vacancy loss calculator.
If you’re eager to learn more about online rent collection and the best rent collection method, you’ve come to the right place. In this guide, you’ll learn how to set up online payments and the best property owner resources for the rent collection process. However, let’s explore why online rent collection is ultimately the best option for your business as a property manager or landlord.
The Best Way to Collect Rent: Why Online Payments Are the Best
Landlords collect rent in many ways, but online payments are the best option. You may want to have the security of physical checks sent to you or delivered straight to your office, but these can run late, go missing, and accrue late fees.
Alternatively, you might even prefer cash payments in person, but the tenants have busy schedules. Finding time to meet up can be difficult, leading to delays. If you work remotely, this might not even be an option if your properties are hundreds of miles away!
You might even opt for ACH payments or credit card payments, which do have their benefits. Using a tool like Zeller or PayPal’s ACH service works, but ultimately, the best way to ensure convenience and speed with your rental payments is through online rent payment platforms.
These platforms only allow for a 24-48 hour delay with most payments, and you can also reject late or partial payments, unlike if someone paid you with a partial rent payment via check.
So, the best way to collect rent is through online payments. But how do you set up these accounts? Let’s look at four steps you’ll need to follow to get your online rent collection account up and ready for business!
Related: How ACH Payments Simplify Rent Collection for Landlords and Tenants
How to Set Up Online Payment Methods for Rental Income
Receiving rent payments online is a convenient and time-saving solution for landlords and property managers. You can receive payments quickly and securely and avoid the hassle of collecting and depositing checks by enabling online payments. Here are the steps to setting up your online payment process:
Step #1: Choose a payment provider
Many payment processing companies offer solutions for landlords and property managers. Some popular payment processors include PayPal, Stripe, Square, and TenantCloud. Research different providers and compare their fees, features, and security measures.
Step #2: Set up an account
Once you have selected a payment processor, you must set up an account. This process usually involves providing your business information, setting up your payment preferences, and verifying your identity.
Step #3: Connect your bank account
You will need to link your bank account to your payment processor account so that you can receive payments. If you do not, you cannot get automatic rent payments, ACH payments, or even partial payments from your tenants.
Step #4: Share payment information with tenants
Once your account is set up, you can share your payment information with your tenants. With our property management software, TenantCloud, you may collect rent from your tenants online through our payment processing system. We ensure all payments are processed correctly and are safe.
Now that we’ve covered how to set up your payment collection account let’s explore the best online payment methods for real property management.
The Best Way to Collect Rent Electronically: Four of the Best Platforms
Online payment methods, such as Stripe, PayPal, Venmo, and TenantCloud, offer landlords the convenience of receiving rent payments via direct deposit. By connecting your bank account through an app, renters can easily transfer funds without the hassle of physical checks or cash. Here’s a look at what makes each of these methods among the best and why you might choose these online rent payment tools.
Stripe
Stripe is an online payment platform that provides a simple and secure way for individuals and businesses to accept and make payments online. With its easy-to-use interface and robust security features, Stripe is considered one of the best online payment methods for collecting rent.
In addition to its ease of use and security, Stripe offers several benefits for landlords and property managers. One of the main benefits is its integration with various software solutions, including TenantCloud.
Another benefit of using Stripe is its ability to handle automatic recurring payments, making it easy to collect rent automatically monthly. With Stripe, you can set up recurring payments and never worry about manually processing rent payments again. That also means reducing the number of late rent payments or partial rent payments you might receive!
Stripe is an excellent option for landlords and property managers looking for an online rent payment system. With its user-friendly interface, security features, and integration with other software solutions, Stripe offers a comprehensive solution for managing rent payments online.
PayPal
PayPal is a well-known online payment system that can increase the credibility of an e-commerce website. It is a popular choice among users because they don't have to enter their card information repeatedly. It also is broadly accessible, allowing landlords to offer a convenient way for tenants to pay their rent easily and on time. All you need is a business account, and you can collect rent from your tenants.
This platform allows for recurring or one-time invoices to be sent for monthly rent collection, which can be paid in various ways: from the tenant’s PayPal balance, credit card, debit card, or even via ACH payment. It is simpler than other rent collection platforms, but if you need something simple and accessible, this is an excellent choice for your real estate business.
Venmo
Much like PayPal, Venmo is also an excellent option for rent collection if you would like to conduct your business online. You can send and receive money quickly through your contact list. You can also connect with people through social media or use their contact information to connect with them.
It’s important to note that Venmo was not designed for rent collection, so it will not have all the features of other platforms like TenantCloud, which have been designed specifically for landlords. Additionally, you can’t set up automatic payments; both the tenant and property manager must have an account, and you’ll have to transfer the money to your bank account after receiving it.
All in all, this is secure and safe, but there are challenges—including a 3% fee for business transactions and the potential for payments over $600 to be flagged due to their amount.
Related: Is Paying Rent with Venmo Safe? Pros, Cons, and Alternatives Explained
TenantCloud
Compared to other rent collection online platforms, TenantCloud offers the basics and so much more. Not only do you enjoy several necessary property management tools—including tenant screening, rental applications, lease agreements, maintenance requests, and rent reporting—but you also gain access to accounting reports and online payments of multiple forms, and you can have your tenants set up recurring payments.
There is also a tenant portal or tenant app to help your renters access the resources that they need, including rent payments and maintenance support for their unit. As a platform, TenantCloud stands out for its comprehensive offerings and its quick payment options. It doesn’t just offer payment versatility, but it provides complete support for the modern landlord and property management company.
What is the Best Way to Collect Rent Online?
Out of the four options above, the best way to collect rent electronically is through a trusted, comprehensive platform like TenantCloud. With so many features to enjoy as a landlord, you can easily handle nearly every aspect of your business and provide your tenants with convenient options through the resident portal for everything they require while they live at your rental property.
With your property management business, you want to make payments as easy as possible and encourage your tenants to use electronic payment methods. For that reason, TenantCloud’s landlord studio offers the best way to collect rent online for streamlined, organized operations.
Try TenantCloud for Online Rent Collection Today
We hope that this article helped you choose what platform you’ll use for your rent collection as a property manager! Whether you’ve been in the business forever or are just starting out, you want to have a platform that can handle all of your needs. That’s where TenantCloud comes in.
Start your free 14-day trial today to see the power of a rent collection platform designed with tenants and landlords in mind. With TenantCloud, your business is in good hands.
Related: Online Rent Payments: Top 5 Reasons to Choose It
Best Way to Collect Rent: Cash vs Online Payments
