Rent Payment Platform: Your Key to Hassle-Free Income

Do you want to simplify rent collection? This article covers nine popular online rent payment platforms that can make the process easier. We’ll dive into the key features to consider, how these systems can benefit both landlords and tenants, and provide a quick overview of what each platform offers so you can find the perfect fit for your rental business.

By
Nichole Stohler
|
Last Updated
September 11, 2024
Rent Payment Platform: Your Key to Hassle-Free Income

You got into real estate investing to make rental income, so determining the most effective way to collect rent should be at the top of your list. When it comes to payment software, you have many choices. While these are usually pretty simple to set up, once you get a rent payment process going, the last thing you want to do is switch payment platforms.

So, how do you choose the best online rent payment platform for your business? This article covers the top options to help you collect rent as efficiently as possible. Explore the benefits of using these systems, find out what features to look for, and check out a list of top options for digital payments.

Benefits of online rent payments

For many years, landlords collected rent in person, via checks in the mail, or through on-site offices and drop boxes. Using electronic rent collection platforms, you can easily collect rent online without the hassle of doing it manually. For both landlords and tenants, this approach offers many benefits, including the following:

Convenience

Online rent payments offer convenience for both tenants and landlords. Tenants can pay rent at any time of day or night, from anywhere with an internet connection. This flexibility eliminates the need to rush to the bank or post office before closing time.

For landlords, the convenience is equally important — no more waiting for checks to arrive in the mail, making trips to the bank to deposit them, or dealing with the hassle of bounced checks. Payment apps help you automate and deposit funds directly into your bank accounts, improving the entire rent collection process.

Improved record-keeping

Online payment systems provide a digital paper trail that's superior to traditional methods. Every transaction gets automatically logged with payment amounts and tenant information. This level of detail makes it much easier for landlords to track payment histories and quickly resolve any disputes.

A rental payment platform gives tenants an easy-to-access record of their payment history, which can be valuable for confirming their status and for future rental applications.

Increased security

Online rent payments provide better security than older methods. Physical checks can be lost in the mail, stolen from mailboxes, or even altered. Cash payments are even riskier, susceptible to theft, and lacking a clear paper trail.

Rent payment software encrypts payments and processes them through secure channels. Many platforms use bank-level security measures to protect sensitive financial information. Also, the lack of physical cash or checks on the premises reduces the risk of theft for landlords who previously might have had large sums on hand after rent day.

Automated reminders

The reminder feature of many online rent payment services can reduce late payments, benefiting both landlords and tenants. You can send reminders via email or text message at predetermined intervals — perhaps a week before rent is due, the day before, and on the due date itself. This helps tenants stay on top of their obligations and reduces the likelihood of them simply forgetting to pay.

For landlords, this means more on-time rent payments. Some advanced online rent collection systems even allow for customizable messages so landlords can add a personal touch to their communications.

Multiple payment options

Many online rent payment platforms allow tenants to choose a preferred payment method, such as a bank transfer, credit card, or debit card. Having options helps tenants who might be low on cash between paychecks stay current on their rent. ACH transfers usually offer the lowest fees, sometimes even free for both landlords and tenants.

Easier for multiple tenants

Online payments make rent collection a lot easier in shared living situations. Each tenant can pay their portion directly to the landlord, so there's no need for one person to chase down payments from everyone else. This helps keep things smooth between roommates and lowers the risk for landlords dealing with partial payments.

Some platforms even offer rent-splitting features, automatically determining each tenant's share based on factors like room size or available amenities.

Better cash flow management

Automated recurring payments can transform a landlord's financial planning. With a more predictable income stream, landlords can do the following:

  • Forecast their cash flow.
  • Plan for large expenses like property taxes or major repairs.
  • Secure more favorable loan terms for buying new property or improving existing assets.

Data and insights

Some online rent payment services connect with accounting software, giving you up-to-the-minute financial data and making bookkeeping a breeze. This lets you see how your rental business is doing at a glance.

This information helps you make smart choices about rental rates, property maintenance, and even expanding your portfolio.

Professionalism

Collecting rent online signals to current and prospective tenants that a landlord runs a modern and efficient operation. This can also help attract and retain tenants who expect digital solutions in all aspects of their lives.

What to look for in rent payment software

It should be simple to collect rent online, right? You might use your local bank account or a payment app like Zelle or Venmo. While those services might get the job done if everything's perfect, they're not ideal for protecting landlords and your property. So yes, it's easy, but the right solution makes all the difference.

What should you look for in a system to automate rent collection? Here are our recommendations:

Flexibility

A versatile rent collection app should offer customizable options to adapt to your business needs, both now and in the future. You may not need all these features today, but having them available helps as your needs change over time. Look for these customizations:

  • Multiple payment types: Choose a solution that allows you to accept payments via various methods. This should let a tenant pay by ACH transfer, credit, or debit card.
  • Rent reminders: You should be able to set up rent reminders and customize the frequency, such as sending them 7 days before, 3 days before, and on the due date.
  • Adjustable fees: Besides monthly rent payments, you'll need a way to charge one-time costs like security deposits or move-in fees. The app should allow for customizable late fees with grace periods, utility bill splitting and collection, and the ability to add charges like pet rent or other recurring monthly fees.
  • Partial payments: Look at rent collection apps that allow you to deny partial payments to help protect you from the challenges of the eviction process, lease disputes, and payment manipulation attempts.

Low transaction fees

Many online rent payment systems charge fees for their services to tenants, landlords, or both. While it's understandable that there are costs associated with these transactions, you want them to be as low as possible. The best online rent payment solutions offer transparent pricing and minimal fees to keep costs down for everyone involved.

Fees can vary significantly between platforms and even between payment methods on the same platform. For example, users on the r/legaladvice subreddit shared their experiences:

  • User leenponyd42: "The portal my rental company uses charges $2.65 to use a bank account routing number, so you got lucky on that one! I think it's $15 to pay with a debit/credit card with our portal."
  • User chococat_: "The portal my landlord uses still charges $2.50 to pay by bank account. Mildly annoying, but I'm not ready to have my lease not renewed over it."

As a landlord, consider how these fees might affect your tenants' ability or willingness to pay rent online. Some tenants may be willing to absorb small fees for the convenience of online payments, while others might find them burdensome. Factor these considerations into your decision when choosing a platform, and be transparent with your tenants about any fees they might incur.

Security

When choosing an online rent collection service, it's wise to focus on platforms with strong security features that protect both you and your tenants. Protecting sensitive financial and personal information is more important than ever. To make the best choice, look for platforms that include the following security features:

  • Data encryption: This bank-grade encryption protects financial transactions and the storage of personal details.
  • Multi-factor authentication: Protect everyone with an extra layer of security beyond passwords to reduce the risk of unauthorized access to accounts.
  • Industry compliance: Verify that the service complies with relevant industry standards, such as PCI DSS (Payment Card Industry Data Security Standard), for handling credit card information.

Accounting features

While your primary focus is on finding a way for tenants to pay online, automating the reporting and accounting of payments can be an additional benefit of these systems. Consider options that provide the following:

  • Reporting: Choose a solution for rental payments that provides detailed history and records. It should offer customizable financial reports for accounting purposes and make it easy to generate receipts for tenants.
  • Integrations: Look for software that can integrate with your other management tools. This could include property accounting software or tenant screening services. Integrations can enhance your overall property operations.

Customer support

You don't want to be left hanging if a payment issue arises, so prioritize services with a track record of quick problem resolution. Choose an online rent payment software that provides support capabilities like the following:

  • Multiple channels: Getting support through many options, such as phone, email, and live chat, allows you to choose the most convenient method for your needs and the urgency of the situation.
  • Self-service resources: Select a platform that offers an online knowledgebase to quickly resolve common issues on your own, saving time and reducing frustration.
  • Responsive support team: Research the company's reputation for timely and effective support. Look for reviews or testimonials that specifically mention the quality and speed of customer service.

9 best online rent payment systems

1. Azibo

Azibo is much more than an online rent collection service. It's fully featured property management software that makes managing your rental business much easier. Unlike some competitors that charge for basic services, Azibo offers many of its core features for free, making it an attractive option for landlords looking to minimize operational costs.

The platform's user-friendly interface and mobile app make it accessible for tech-savvy and traditional landlords alike, allowing for easy management on-the-go.

Key features:

Transaction and other fees:

  • ACH: Free for landlords and tenants.
  • Credit/debit: Tenants pay 2.99% per transaction.
  • Property management features: Landlords can access core features like financial management, accounting, and maintenance tracking at no cost. Premium services include state-specific lease agreements with eSign for $29.99 per lease.

2. Clear Now

ClearNow offers automated rent collection via ACH bank transfers and additional features like tenant screening and automatic payment reminders. The platform supports income and expense tracking for tax purposes and provides tenant rent payment reporting to credit bureaus.

Key features:

  • Automatic payment processing: The system automatically debits rent from tenants’ accounts on a scheduled basis to support timely payments.
  • Direct deposit: The funds are directly deposited into the landlord's bank account, eliminating the need for manual processing.
  • Credit reporting: Tenants can choose to have their rent payments reported to Experian RentBureau, which may help build their credit history.

Transaction and other fees:

  • Landlords pay $14.95/month for one monthly debit; additional debits are $2 each. Biweekly or semimonthly debits are $4 per debit. Fees apply only when the service debits from tenant bank accounts.

3. eRent Payment

eRent Payment provides online rent collection services via ACH transfers. The platform offers additional features such as tenant screening, maintenance request tracking, and online lease signing.

Key features:

  • Payment options: This online rent payment system supports both one-time and recurring payments and accepts ACH transfers.
  • Tenant services: Tenants can receive payment confirmations, review payment history, and build credit by reporting rent payments.
  • Maintenance requests: Residents can submit and track maintenance requests online, improving communication with landlords.

Transaction and other fees:

  • ACH: The standard plan costs $3.00 per transaction. With the Plus plan, landlords pay $10/month for up to 5 transactions and then $1.00 for each additional transaction.

4. Letus

Letus, previously RentHelper, provides flexibility in payment scheduling and supports rent reporting to major credit bureaus. Letus also offers features to help tenants improve their financial health, such as budgeting tools and credit score tracking.

Key features:

  • Automated payment processing: The platform supports recurring rent payments, which provides landlords and property managers with timely and consistent cash flow.
  • Multiple payment methods: Supports ACH, credit card, and debit card payments, providing flexibility for tenants.
  • Landlord dashboard: Offers a centralized view for managing payments, tracking rent history, and accessing detailed reports.

Transaction and other fees:

Letus doesn't publish fees publicly.

5. PayYourRent

PayYourRent caters to both small landlords and larger property management companies. The platform integrates with popular property management software and provides a resident portal.

Key features:

  • Flexible payment options: PayYourRent supports ACH, credit card, and debit card payments.
  • Automatic payments: Tenants can set up recurring payments to confirm their rent gets paid on time each month.
  • Tenant management tools: The software offers operational capabilities, such as maintenance tracking, payment history, and communication tools, to support property management.

Transaction and other fees:

  • Monthly fees: Plans start at $9.95/month and include 1 ACH transaction.
  • ACH: $2.50 per transaction.
  • Credit/debit: PayYourRent does not publish convenience fees online.

6. PropertyWare

PropertyWare, a RealPage company, offers a property management solutions with integrated rent collection features. The platform supports single-family and small multi-unit rental properties.

  • Customizable late fee rules: Landlords can set specific late fee rules that automatically apply based on their policies.
  • Mobile-friendly payment options: Propertyware is optimized for mobile use, so tenants can make payments and manage their accounts from their smartphones.
  • Tenant Portal Access: Residents can access a secure portal to manage payments, view history, and set up auto-pay.

Transaction and other fees:

  • ACH: $2.95 per transaction.
  • Credit/debit: $3.00 minimum or 3.1% of the payment.
  • Monthly fees: Propertyware starts at $1 per unit per month with a $250 monthly minimum plus an implementation fee of 2X the monthly subscription price.

7. RentPayment

RentPayment handles rent collection for properties of various sizes, from individual units to large apartment complexes. The platform offers customizable payment policies and includes utility billing and invoice management capabilities.

Key features:

  • Payment flexibility: This rent payment platform allows for online payments via ACH, credit cards, and debit cards.
  • Mobile app: Tenants can make digital payments and manage their accounts on the go.
  • Property management integration: The solution integrates with property management software, allowing the tracking of payments, maintenance requests, and tenant communications.

Transaction and other fees:

  • RentPayment does not publicly provide pricing details.

8. Rentler

Rentler's platform serves both landlords and tenants throughout the entire rental process. Beyond rent collection, it provides tools for rental listing creation, apartment searching, and facilitating communication between property owners and renters.

  • Property rental listing: Create and manage rental listings to attract tenants.
  • Tenant screening: Offers credit, eviction, and criminal background checks for tenants.
  • Online rent collection: Accepts ACH payments and debit or credit card transactions.

Transaction and other fees:

  • ACH: $1.95 per transaction.
  • Credit/debit: 3.5% + $0.30 per transaction.
  • Property management fees: Landlords can pay $19.95 for a rentability report, $25 for access to legal forms and listing services starting at $15/day.

9. Vacation Rental Payment

Vacation Rental Payment specializes in handling transactions for short-term and vacation rentals, addressing the unique needs of this rental market segment. The platform offers features like handling security deposits, cleaning fees, and seasonal rate adjustments. It also provides tools for managing cancellations and refunds, which are common challenges in the vacation rental industry.

  • Payment options: It supports multiple payment methods, including credit cards, debit cards, and ACH transfers.
  • Automated scheduling: Offers customizable payment schedules for various booking scenarios, such as split payments or multiple installments for longer stays.
  • Multi-currency support: Handles transactions in various currencies, making it easier for property managers to attract and accommodate international guests.

Transaction and other fees:

  • ACH: Check with Vacation Rental Payment for ACH fees.
  • Credit/debit: $2.99% + .30 per transaction.

Online rent payment platforms

Choosing the right online rent payment system can improve your property management operations. It streamlines your processes, keeps your cash flow steady, and helps your business run smoothly.

There's no perfect solution for everyone. Software that works well for a landlord with a few units might not suit someone managing multiple properties. Take time to test different platforms and identify which features actually matter for your specific needs.

The ideal system should fit your requirements and keep your tenants satisfied. Whether you choose a basic platform or invest in one with advanced features, make sure it's sustainable for both you and your residents in the long run.

Consider contacting other landlords or property managers for their feedback. Their experiences could provide valuable perspectives as you make your decision.

Rent payment platform: FAQs

What is the best platform to rent a house?

Zillow and Realtor.com are among the best platforms for renting a house, offering extensive listings, detailed filters, and user-friendly interfaces.

Can I pay rent with Klarna?

No, Klarna is for shopping and retail purchases, not for paying rent.

Is there another app like Flex Rent?

Yes, another app like Flex Rent is Jetty, which offers flexible rent payment solutions for tenants. This allows them to pay rent on their own schedule while making sure landlords receive full payments on time.

Important Note: This post is for informational and educational purposes only. It should not be taken as legal, accounting, or tax advice, nor should it be used as a substitute for such services. Always consult your own legal, accounting, or tax counsel before taking any action based on this information.

Nichole Stohler

Nichole co-founded Gateway Private Equity Group, with a history of investments in single-family and multi-family properties, and now a specialization in hotel real estate investments. She is also the creator of NicsGuide.com, a blog dedicated to real estate investing.

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