With the way that technology is going is anyone out there using 3rd party online services to collect rent. If so could I get a few suggestions on some companies. Also what are the pro’s and con’s of using online rent collections. Any help would be greatly appreciated
Jordan
Online = Banked.
Probably fewer than 50% of your residents have a bank account. Online rent collections are not a significant source of rent collections. Most residents pay rent on-site or by mail-in with a money order (those are the unbanked) or by check.
That said, accepting PayPal is a good idea. It will not be a significant source of rent collections either, however when a resident is unable to pay rent and is facing eviction, they will often tap a relative’s credit card at the last minute to pay their rent online via PayPal.
Your mileage may vary,
-jl-
Paylease or RentPayment are the two big ones but more utlized in the market rate multifamily and single family residential markets for the reasons JL said.
I realize that there are a number of reasons why web payments may be problematic but I thought I’d toss Cozy.co into the mix. I have plans to use the service for a rental home once it is out of a management contact. I am also thinking it could lend itself to the MHP industry with a little modification.
Has anyone ever tried incentivising the use of alternate payment methods? Discounted rates etc…? It would be an interesting thing to research… Personally, I love the option to pay things online. Wondering if there is a way to: 1) offer incentives, 2) help develop some beneficial financial practices (i.e. partner with a bank/resource to assist in long term financial development). Maybe too idealistic?
I have my tenants deposit their rent into the local Chase bank. We can see their deposit slips online. We send them 14 pre-printed deposit slips, with my account number and their space number on it each January. As long as they use those, they’re fine. If they don’t, they need to remember to write their space number on the slip they do use. Either way, the system works great for us, and I think they like it too. The only disadvantage is that I can’t kick back to them a partial payment. But, that so rarely happens, that it’s not a concern. This system is bee-you-tiful!
dave
Hi,
I own a company Renteater, we collect online rents. We
charge a very nominal amount of money from tenant and for landlord this
facility is free of cost. Any further queries, I would like to answer them
Thanks
Renteater
Our bank, Wells Fargo, offers deposit cards (looks like a credit/debit card), they can go to the bank and deposit the money into your account. Works great for people that don’t have bank accounts, they can pay with cash and not have to worry with getting a money order, assuming you don’t take cash.Leighnae
I use www.erentpayment.com . It is $3 for a transaction. Our of 23 clients only 3 uses this service. However, I keep it because it is free and some clients use it.
A while back I put this list together for myself and others:
https://www.rentapplication.com/39-ways-to-accept-rental-payments-online/
[disclaimer, one of my companies operates that website]