Today, there are plenty of mobile payment applications to choose from that make it easier for you to collect rent from your renters. But you may be wondering which is the best way to collect rent as a landlord. From Zelle to Venmo to PayPal, these online applications help you receive rental payments on time and with less hassle.
With Apartments.com, online rent collection is easy, convenient, and secure. Plus, Apartments.com has Express Pay. Express Pay is an innovative feature offered by Apartments.com, designed to have rent payments deposited to your bank account even sooner.
By using Apartments.com you can enjoy a hassle-free system that allows for automatic payments and the ability to set up late fees. Feel at ease knowing every payment from your tenant is safe and organized in one convenient location. Unlike Venmo and PayPal, there are no extra or hidden fees for you as the landlord. However, if you’d like to explore all your options, here are the pros and cons of collecting rent with Zelle, Venmo, or PayPal.
Collecting Rent with Zelle
Zelle is a payment application that lets your renter send money to you if you both have a bank account that approves Zelle. To collect rent, all your renter will need is your email address or phone number to send the money to your account.
Pros of Using Zelle for Rent Collection
- Funds are usually available on the same business day
- Tenants can set up recurring payments
Cons of Using Zelle for Rent Collection
- There is a limit on how much can be sent or received depends on the bank.
- Both the tenant and landlord must use a bank compatible with Zelle.
Collecting Rent with Venmo
Venmo is a great option to collect rent, especially if you already use it to pay friends and family. But you must have a business account to collect rent, and there are fees. To use Venmo for rent, your tenant will need a Venmo account, a username, and phone number.
Pros of Using Venmo for Rent Collection
- Venmo is a mobile app that anyone can use
- Venmo rent payments are received on the same day
- Can link a debit card and/or checking account
Cons of Using Venmo for Rent Collection
- Venmo business accounts incur a 1.9% and $0.10 transaction fee on any payment received
- Funds may be held for three days before arriving in the bank account if you do not select instant transfer
Collecting Rent with PayPal
Paying rent through PayPal is another popular option. Like Zelle, your tenant will need your phone number and email address.
Pros of Using PayPal for Rent Collection
- Tenants can use PayPal for rent payments by linking their checking account or debit card
- Tenants can set up automatic payments
Cons of Using PayPal for Rent Collection
- The transaction fee to receive funds is around 3% to 3.49%, depending on the account.
Apartments.com Online Rent Collection
Like with using any app, there are some drawbacks to using Zelle, Venmo, or PayPal for collecting rent. For example, these apps do not have a way to set up late fees. Therefore, if your tenant is late on rent, there is no way to charge them a late fee. Some renters may see these mobile payment apps as a red flag since these apps are typically only used to send money between friends and family, or they have even been asked to send money through these apps by scammers who claim to be landlords.
When deciding how to collect rent, considerations such as convenience, security, and ease of use are paramount. While Zelle, Venmo, and PayPal offer some advantages in terms of accessibility and speed, they also come with limitations and potential risks, including security concerns and transaction fees.
Apartments.com provides a dedicated platform tailored specifically for rental transactions. With Apartments.com, landlords and tenants alike can benefit from a secure, streamlined process designed to simplify rent collection and management. Not only does it offer features like automatic recurring payments and digital lease signing, but it also prioritizes security and data protection, giving both parties peace of mind.
