Best software for Rent Collection?

Question

Hello BP!

I currently collect rents in paper checks/Venmo but I am looking to place all tenants in the same place. What site/apps you guys found that works best? Thanks!

Miller McSwain · Answer

There are lots of property management softwares. I'm a single-family investor, and I recently looked through the most popular softwares and selected one. The products I investigated were:

1. Tenant Cloud

2. Apartments.com

3. Innago

4. Avail

5. RentRedi

I was looking for a software that met the following criteria:

1. Online payments from tenants

2. Automatic late fees

3. Maintenance request portal

4. Free for the landlord

5. Online applications

6. Tenant screening (background checks, etc)

7. Lease signing

8. Ability to post vacancies in the software

I found that Innago was the only one to meet all these requirements. It does charge a $2 fee for each rent payment, but that is charged to the tenant by default. I haven't had any complaints from tenants about this charge.

The other softwares were pretty good, but here are the deal breakers for each.

Tenant Cloud: Tenants cannot setup autopay unless we have the paid version

Apartments.com: You cannot upload your own lease, you can only make modifications to their lease

Avail: You cannot upload your own lease, you can only make modifications to their lease

RentRedi: No free version AT THE TIME

***I investigated these softwares 8-12 months ago, so some things could have changed. For example, RentRedi is free now if you are a BP Pro member that could potentially make it a contender with Innago for my use.

Nathan Gesner · Answer

RentRedi is free for Pro members. (you pay $1 to set it up).

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.

John Underwood · Answer

I don't collect rent. They pay me or face the consequences.

That said I use Zelle, Paypal, Venmo, ACH and some still deposit directly into my business account.

I also have some on Rentredi with a partner and it works pretty well. I have thought about switching everyone over to Rentredi don't if it isn't broke don't fix it. Maybe one day.

Zelle is my favorite, and the transfer happens in minutes and Zelle is supported by all the major banks. It is likely already built into your banking app.

Mose Gebremeskel · Answer

That's awesome!

Tommy Parker · Answer

I use Innago as well. I found it super easy and helpful. I like that I can run it completely free. There is a charge to the tenant but it's not ridiculous only $2.

Johann Jells · Answer

Been using Cozy, now Apartments.com for years. Tried Zillow recently as I generally like their interface better, it's OK, but I noted they can't take individual payments from roommates the way Apts can.

Ishmael Johnson · Answer

So my next question is how will text messages suffice in court, lets assume the tenant is consistently late and does respond to the text notifying them to include the late fee?

John Underwood · Answer

I don't send a request. They know when their rent is due.

I just text them to add the late fee after it is late.

Ishmael Johnson · Answer

@John Underwood if there ever is a situation where the tenant is paying past the grace period, how would you document it and send a request for the late fee. Can't they just ignore the zelle, paypal, venmo request?

Mark F. · Answer

I use Apartments.com. I've had no issues, I know Miller Mcswain said they don't allow you to upload your lease. I've never had that issue. It allows me to upload their lease plus renters insurance. So a win for them. They have a maintenance request but my tenants just text me. They don't charge tenants to make payments, which in my eyes is ludicrous. Unless the tenants are making payments via CC, why are we punishing them for paying rent? No thanks. I'm sticking with Apartments.com until I grow well over 10 units. Only have 4 as of now.

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