Getting my first property, whats the best app/site to use to collect rent?

Question

As the title says, I'm looking for your guy's recommendation on the best software to use in order to collect rent and manage rentals. I've heard of buildium but not sure of what else is out there.

Nathan Gesner · Answer

Software is a common question on BiggerPockets. Here are some things to consider:

• Most investors don't need software until they have 5-10 rentals. All you need is a single place to track tenant information, payment history, maintenance, and a few other things. You can easily do this on a spreadsheet and it will take less time to track than it would to find and learn a new software. If the software is not simplifying your life or making you more accurate, you shouldn't use it.
• Software does have extremely helpful features like online payments, marketing syndication (click a button and your property is advertised on multiple sites), electronic document review/signing, maintenance tracking, and owner reports. But do you really need that for your one rental?
• There's no perfect software out there. Every system you try will have flaws or you'll salivate over a feature that shows up in other software.

Some common names you'll see thrown around a lot: Stessa, Apartments.com, RentRedi, TenantCloud, Innago, RentManager, Avail, Rentec Direct, Doorloop, etc.

I recommend you search for each of those apps online and see what they offer, how much they charge, etc. Make a simple spreadsheet or written list with the features of each and see which ones appeal to you most. Try to narrow it down to your top 3-4. Once you have a short list, get an account with each one and run them through the wringer to see how they really function. Do one task at a time in each app so you can compare apples to apples.

• Load a property with pictures and details.
• Market that property.
• See what your marketing looks like from the public's perspective.
• Submit a fake application to see how easy the process is.
• Run a credit/screening report on yourself.
• Enter a maintenance request, assign a vendor, attach a fake invoice.
• Enter charges to the tenant's ledger.
• Enter recurring charges and automatic late fees.
• Sign documents electronically.
• Run owner reports.

After testing a few apps, one of them should stand out for you. Choose that one and use it. No system is perfect, so don't waste your time chasing after the next shiny object. You should only have to change when your current software has a flaw or lacking feature that is causing you to spend too much work on a work-around. Then you can consider researching and finding something that meets your needs better.

Jared Hottle · Answer

I think getting everyone set up on apartments.com is all you need for the first couple rentals. Its free to use and puts the idea of systematizing in your head. Some new landlords can get burnt out trying to track down rent or following up to make sure it was mailed. This has made it a lot easier for the 1-5 unit operators and encouraged them to keep going.

Chris B. · Answer

My weakness is I'm too nice and that has cost me $$$ over the years.  In particular I was too soft on late rent and property damage repair fees and it snowballed from there.  Solution: an automatic online rent and fee collection system.  I manage everything else myself for my small number of properties.  I send certified letters as necessary and let the online system collect payments.  I investigated about 5 different systems and Innago was the first I came across that fit my need.  The other four only allowed for a one time late fee.  Some didn't even add the late fee to the current amount due but to the next month.  In my opinion with a system such as this, once the tenant is late, there  is no further motivation for a tenant to pay other than threat of eviction.  I recently started using Innago as it allows for a daily compounding late fee.  I have configured it to start on the day I choose and it ends after X number of days.  It costs me $2 per property per month.  In fact, it can have multiple layers of fees if that's what you want.  The problematic tenant has started to shape up.  Before the system, always 1 to 2 weeks late.  Once implemented, 10 days late the 1st month, 7 days late the second month, and 1 day late last month.  All late fees were automatically billed and collected online.   Yes, I realize I should have not it get like this in the 1st place and if this effort doesn't pan out, then they are gone. Innago also has a feature to only accept payment in full including all fees and expenses.  No more partial payments.  Another win.

I previously allowed Zelle, but with an untrustworthy tenant, there is no partial payment protection.  A tenant can send me $5 and as Zillow automatically accepts it, here in AZ, it would count as me collecting partial rent and I would not be allowed to peruse eviction until the next month assuming I didn't disable Zelle and allow this to happen again and again.  Also Zelle doesn't allow for the ability to individually enable/disable a tenant in the system.

Money orders require driving over to pick up, or the tenant sending them late and then the late fee issue is still there.  Same with checks and cash.

I checked out some of the above mentioned apps and they definitely did not fit my need or were expensive compared to the competition.  If you want them to handle applications and contracts also, check out their capabilities and what you as a landlord will need should there every be a problem and a day in court.  Zillow applications are one example of a poor implementation.  Data the applicant enters seems to frequently not be verified and it allows for complete omissions in fields and hides important information such as social security numbers from landlords.  Its unusable.   I love Zillow for advertising the property though.

Joe Minteer · Answer

I'm a little late to the party, but if this is your first, just grab Excel for tracking & Zillow.com for rent collection.  Once you get into a large number of doors (10+), I'd look into software.

I have 5 and growing, and still don't have the need.  I think once you do it full time as your primary source of income, then it probably would be advisable to upgrade and get some software.

Eliott Elias · Answer

A property manager.

Josh Young · Answer

Zillow rental manager is free (except $10 per week to list property for rent) and does everything you need.

Getting my first property, whats the best app/site to use to collect rent?

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