Collecting rent is one of the most important parts of being a landlord. But what if you could make the process faster and more effective? Rent collection software designed for landlords.
Rent collection doesn’t need to be stressful, and keeping track of payments shouldn’t take up hours of your time. With the right tools, you can save time, reduce costs, and avoid unnecessary hassle. The easiest way to improve your system is by using tools designed specifically for landlords, and online rent collection tools are built to do just that.
Online rent payments should be simple and affordable, but not all platforms offer the same benefits.
So which services should landlords look into? Let’s go over the top online rent payment options and what they can do for you.
3 Common Ways to Collect Rent Online
Before diving into specific services, it helps to understand the main types of online rent payment systems. Landlords usually use three main options:
1. General Digital Payment Apps
Many landlords start with digital wallets such as PayPal or Venmo. These apps allow tenants to send money directly from their account to yours.
This method is popular because tenants are usually familiar with these apps, and landlords don’t need to spend much time setting them up. It’s a quick and easy option for both sides.
The drawback is that these apps aren’t built for landlords. You can’t automatically add late fees, block partial payments, or set up recurring rent. Depending on your tenants and rental setup, these issues may cause problems.
2. Rent Collection Software
Another option is rent collection software, which is designed for landlords. Tenants can log in, see what they owe, and pay directly. Landlords can send reminders and apply late fees through the system.
This type of software is more specialized than general payment apps. Some tenants may be hesitant to use it at first, but the learning curve is usually small.
3. Property Management Software
The third option is property management software, which goes beyond rent collection. These systems can also handle lease updates, maintenance requests, and more. They’re especially useful for landlords managing multiple properties or working with a property management team.
Because of their wide range of features, many of the top rent payment services fall into this category.
Best Online Rent Collection Services
The strongest rent collection services are often part of property management tools. These allow landlords to scale features up or down depending on their needs. You don’t have to use every feature, but it’s helpful to have the option as your business grows.
Here are seven of the most popular services for collecting rent online:
1. Avail
Avail, part of Realtor.com, is a property management platform that includes rent collection. It offers tools for tenant applications, screening, advertising, and payment collection.
There is a free plan, but it has limited features. Most landlords will need a paid plan, charged per unit. Many landlords find Avail useful because it covers everything from listing properties to collecting payments.
2. PayRent
PayRent is a simple, focused tool for landlords who only want to manage rent collection without extra features. It’s a good option if you already have your own systems in place and don’t want to change them.
3. Hemlane
Hemlane combines features from both simple rent tools and full property management systems. It allows landlords to mix self-management with online support. Instead of removing features you don’t need, Hemlane lets you build up only the ones you want, making it flexible and user-friendly.
4. Appfolio
Appfolio is best for landlords managing more than 100 units. It provides tools for payment collection, late fees, bill tracking, and security deposits. With so many units to manage, automation is key, and Appfolio is built to handle large portfolios.
5. PayPal
PayPal is widely known and trusted, making it an easy choice for many tenants. Landlords can set up a business account, and tenants can pay using bank accounts, credit cards, or PayPal balances.
However, PayPal isn’t designed for landlords. You can’t block partial payments, and eviction can become complicated if tenants keep sending money. Transaction fees also reduce your earnings.
6. Venmo
Venmo, owned by PayPal, is another popular payment app. It’s especially common among younger tenants. Rent can be split between roommates, and payments are quick to send.
Venmo doesn’t charge tenants fees for sending rent, but landlords pay about 2% for business transactions. Like PayPal, it lacks features such as blocking partial payments, which may cause issues during evictions.
7. Zelle
Zelle transfers money directly between bank accounts using just a phone number or email. It’s free and secure, and many banks already include it in their apps.
The downsides are that Zelle only works with U.S. banks, has weekly send limits, and isn’t always available for business accounts. These restrictions make it less reliable for landlords with larger operations.
Choosing the Right Tool to Collect Rent
When deciding on a rent collection service, consider these factors:
- Fees: Check what each service charges and how it affects your profits.
- Ease of use: Think about how comfortable you and your tenants are with technology.
- Number of units: Simple apps may be fine for a few properties, but bigger portfolios often need property management software.
- Your location: If you live far from your rentals, online payments make things much easier.
- Management style: Some platforms require more tenant interaction than others. Pick one that fits how you like to manage.
Before Rent Collection: Pick the Right Tenants
Collecting rent is easier when you have reliable tenants. Screening tenants carefully is one of the most important steps in protecting your rental business.
Tenant screening allows you to check applications for honesty, reliability, and ability to pay rent. Services like background checks can give you more confidence in your choices and reduce future problems.
