It doesn't matter if you're new to owning rental properties, or you're just getting started with real estate investing, rent collection is one of the most important parts of owning investment properties.
Thankfully, rent collection doesn't have to be a difficult task, especially if you follow these tips.
The Top 9 Ways for Landlords to Collect Rent Online
Let’s look at some of the most popular ways that successful landlords collect rent.
1. Buildium
This app has excellent services for landlords and tenants. Tenants can pay each month or set up recurring payments, and they can pay their security deposit, too. The rent collection app also has a chat tool that allows tenants to contact the landlord in case of any maintenance issues. Landlords can even take advantage of screening tenants with the app. Also, they can automatically list vacancies on Zillow, Trulia, and Craigslist.
2. PayRent
PayRent allows for e-check and credit card payments—one-off or recurring. You can accept partial payments, which could be useful in unique situations. Landlords can track payments and use full accounting tools to manage their finances. The downside is that it is a little costly. PayRent takes 3.5 percent of each transaction, plus $0.30 on credit card payments and 0.25 percent of bank transfers.
3. RentDrop
The RentDrop app has a great user interface that is easy for everyone to use. Tenants can set up recurring payments, use a debit or credit card, or allow for ACH direct deposits. So, no more trips to the bank to cash checks or wait for funds to clear. It is perfect for landlords who manage multiple properties because you can quickly get an overview of your rental units.
Better still, for landlords, it is free. Indeed, you might not enjoy all of the sophisticated management tools—but do you need them?
4. AppFolio
This app is also more than just a rent collection app—it’s a property management app. So, it will save you a ton of time if you’re managing multiple rental units. This app is ideal for those who have mixed property portfolios. Some of its features include the ability to arrange renter’s insurance and bulk messaging. Landlords can screen tenants through the app and gain access to rent comparison tools.
The app isn’t as straightforward to use as others, and you might need deep pockets. Prices start at $250 a month.
5. eRentPayment
This app has a wide range of tools for landlords and tenants. Of course, you will find the usual online payment options and reminders. One excellent feature is that tenants can leave maintenance messages for landlords. This feature helps to improve landlord-tenant relationships as there are less conflict and confrontation. As well as tenant screening, eRentPayment offers credit reporting—something that many tenants like if they need to improve their credit history.
6. ClearNow
Landlords can entice tenants to use this app when they learn that it can improve their credit score. ClearNow can send rental payment histories to Experian Rent Bureau. Tenants are motivated to pay their rent on time, knowing that they'll find it easier to a loan or even a mortgage in the future.
Keep in mind that the tenant has to ensure that the full rental amount is in their account, or the recurring payment won’t be processed.
7. Avail
Avail is a simple app. Tenants log on and make a payment or set up recurring payments. The app also sends automatic email reminders five days before the rent due date and again on the actual date. Landlords can have the rent payment cleared in their accounts within three days.
8. Zelle
Zelle is a money transfer app rather than a rent collection app. It kind of works like a direct debit. It’s simple to use—just download the app and add your bank details. Most of the time, the landlords receive the money instantly, and neither party has to pay fees. But you won’t be able to use features like recurring payments or reminders. Furthermore, people can send money to the wrong account by accident
9. PayPal
Because of the popularity of PayPal, it is likely that you already have it and, therefore, don't have to download more software. It is straightforward to use and probably a better solution to checks. However, it lacks all of the functions of the best rent collection apps. There is no way to send reminders, and PayPal clearly states that purchase protection doesn't cover real estate transactions.
How Successful Landlords Collect Rent
If you aspire to become a successful landlord who manages multiple properties, start as you mean to continue. Using an online method to collect rent from the outset will ensure a healthy cash flow. Landlords who collect rent online have fewer issues collecting rent on time, and they can devote time to more important things—running a successful rental business.
Contact JD Homes
At JD Homes, we specialize in full service property management.
Our team treats every client, like they are our own client because this focus on service ensures consistent ROI from each of our clients rental properties.
To learn more about the property management services that we can offer you, contact us today by calling (770) 506-2630 or click here to connect with us online.
