Do you remember putting cash or a check into an envelope and bringing it to your landlord at the beginning of each month? Those days are long gone as the convenience of internet connectivity has made rent collection as easy as opening an app. Direct deposits, PayPal, Venmo and a multitude of other options have created the most seamless and simple rent payment systems in history.
Offering multiple or easy-to-use options to pay rent is another perk that could draw tenants your way. Similar to how offering your tenants to boost their credit with rent reporting is a perk, multiple digital rent payment options are as well.
What Are the Rent Payment Options
- Cash/Check
This is the most inconvenient of all options due to the need to receive it in person but paying cash or check may still hold value and be preferred by some of your tenants. Many landlords refuse to accept cash or checks but that is up to you.
- Direct Deposit
Banks have made the process of direct deposit as simple as possible. It takes a few moments to set up and you can have money transferred directly from one bank account to the other, often with little or no fees.
PayPal is a very popular, very flexible payment system that many landlords use to collect rent. There are high transfer limits, meaning that there is in need to split rent into several payments. ($10,000-$60,000 transfer limit)
Venmo is similar to PayPal in that you can transfer and make payments to multiple parties on the app. Lower transfer limits are available on Venmo. ($3000 transfer limit)
Zelle is the only option of the three apps that doesn’t charge you a fee for using the app (if you have Zelle-affiliated bank). It also has the lowest transfer limits of all. ($1000 a day and $5000 total monthly)
Pros and Cons
One of the best aspects of owning a rental property is the consistency with which rent comes in. No wonder tenants want to improve their credit score with rent payments! Why not? They are paying it on time, every month anyway. And as they improve credit with rent payments, you are building your asset.
With each rent payment option, there are drawbacks and benefits. Each landlord has differing needs and they must choose accordingly.
- Convenience
All digital options for rent payment are far more convenient than the traditional cash and check method.
- Speed
With PayPal, Venmo, Zelle and Direct Deposit, rent payment is almost instantaneous. In the case of direct deposit, you need only do the work once and rent payments are taken care of from that day forth.
- Fees
This is where cash, check and direct deposit (sometimes) have the upper hand. Most apps charge a processing fee and a percentage for each transaction that passes over their servers.
Make Rent Payments Easy
Rent is a major part of every renter’s life. Making it easy and enjoyable for them will go a long way to building a solid relationship with them. Offer convenient solutions that will make paying rent as simple as possible to encourage on-time and consistent rent payments.
Do you know what else encourages renters to pay rent consistently and on time? If they can improve their credit with rent payments! CreditRentBoost.com offers solutions for landlords and perks for tenants, allowing them to boost their credit with rent reporting while helping landlords protect their assets. Reach out to CreditRentBoost.com to see how they can help your tenants improve their credit score with rent and boost their credit with rent reporting options.
