Landlords - how do you receive automated rent payments?

Member since 2019 · 7 posts · 5 votes

Hi everyone, I was wondering if anyone had an automatic payment system setup with their tenants to receive monthly rent payments automatically. This way you don’t have to physically pick up rent or wait for them to mail you a check. If anyone has experience with this or recommendations it would be appreciated. Thanks!

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Mike O.

twin cities · Member since 2015 · 45 posts · 37 votes

I have used Cozy for the last 5 years and I love it

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Mike O.
twin cities · Member since 2015 · 45 posts · 37 votes
6y
I have used Cozy for the last 5 years and I love it
18 Reply
Account Closed
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
6y
@Daniel Pessin
Venmo only. It's free and simple. Heck, I even pay most of my contractors with it. There are others like CashApp, but I keep it sime buy just using Venmo.
3 Reply
Oktay Ugur
Rental Property Investor · Madison, WI · Member since 2019 · 14 posts · 1 vote
6y
I use Zelle and CashApp..
0 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y
Zelle, it is instant and free.
Most of my tenants deposit into my bank account. They get a receipt and I can look online to see who has paid.
I don't chase rent. I train my tenants to get the rent to me or there are consequences.
7 Reply
Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
6y
@Daniel Pessin I currently use Cozy, Venmo, and Zelle. They all work and have their pros/cons. But since you mention you’re looking for “automated”, I’d probably recommend Cozy.
Once you set it up initially, it just automatically transfers the rent from the tenant’s bank account to yours each month with no further action require on your part or the tenants. It’s also free.
5 Reply
Chris Jakubicek
Real Estate Broker · TX · Member since 2016 · 15 posts · 8 votes
6y
I use cash app and Rentpayment. With Rentpayment a receipt is emailed to me the moment the tenant makes a payment. It also allows you to take payments over the phone. It takes about 3 business days for the money to hit my bank account. I've used it about 4 years and it works great!
1 Reply
Oktay Ugur
Rental Property Investor · Madison, WI · Member since 2019 · 14 posts · 1 vote
6y
John Underwood, I am about to close a property and that's how the tenants pay the current landlord. I don't know if the tenants use Zelle or CashApp. What information do you provide your tenants to be able to deposit the rent into your account?
1 Reply
Account Closed
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
6y
One thing to keep in mind, you can't use Zelle from a business account (atleast not with Huntington).
0 Reply
Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
6y
Originally posted by @Account Closed:
One thing to keep in mind, you can't use Zelle from a business account (atleast not with Huntington).

My guess is that is bank-specific because I have no problem using it with my business bank account (to send or receive money). Just FYI.

1 Reply
David M.
Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
6y
@Daniel Pessin
Zelle since it’s easy for everybody, free, and instantaneous. Also, already linked into the banks. Less work than Venmo since Venmo, being a Paypal derivative apparently, maintains a separate balance. Zelle goes straight into my account unlike Venmo where I have to log in and transfer the funds back to my bank account.
1 Reply
Kenneth Anguka
Rental Property Investor · San Pedro, CA · Member since 2019 · 3 posts · 4 votes
6y
@Daniel Pessin I use this website Avail.co. They support having the tenant setting up recurring auto payments. I made this a stipulation for my tenant due to credit history. Avail has a free version but the paid version lets you receive payment faster.
2 Reply
Alyssa McEwan
Rental Property Investor · Salt Lake City, UT · Member since 2020 · 51 posts · 32 votes
6y
@CJ M. I was just about to ask if Venmo wasn’t a good idea being no one was talking about it. I’m using it for my tenant and it’s been doing just fine:)
1 Reply
Ricardo S.
Flipper/Rehabber · Atlanta, GA · Member since 2014 · 166 posts · 88 votes
6y
I use Cozy. Free and easy.
1 Reply
Curtis Mears
Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
6y
@Daniel Pessin
venmo and cash app. nice and convenient, but does take a few days to process and actually receive funds.
0 Reply
Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y
I use ACH via my bank. I have my tenants provide an ACH form with their bank info and i set up the ACH withdrawals. It takes one day for funds to hit your account and I am in control. Also ACH is what allthose other services are using (altho they keep your funds for an extra day or two) ....

2 Reply
Cole Shope
Olathe, KS · Member since 2017 · 12 posts · 8 votes
6y
Dan,
Online rent collection (happens to be automatic ) is going to be a game changer for you! I have used Cozy for over a year now. It is nearly perfect for me and my 5 units. Totally free, totally automatic, totally awesome. As I grow Cozy will grow with me.
Cozy earns 4.9/5 from me.
2 Reply
Alexandrea Backus
Rental Property Investor · Catskill, NY · Member since 2018 · 5 posts · 0 votes
6y
@Daniel Pessin I have been using Avail for sometime now. They are fantastic. They communicate with my tenant to remind him when rent is due (and CC me on all communications), they email me when its paid, the tenant can submit work orders, you can utilize their application template, and
much more. The platform allows you to manage from start to finish and the fees are pretty minimal in comparison. Highly recommend. It takes a a tremendous weight off your shoulders!
0 Reply
Ben Kappel
Realtor · ND · Member since 2019 · 54 posts · 31 votes
6y
Does anyone use Paypal? Any downsides on that platform compared to Venmo? I'm worried no one has said that one yet, which makes me think I'm wrong or missing something.
0 Reply
Account Closed
Member since 2019 · 1k+ posts · 1k+ votes
6y
@Daniel Pessin
Only two options I allow are preauthorized debit and etransfer.
0 Reply
Joe Cassandra
Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes
6y
Originally posted by @Ben Kappel:
Does anyone use Paypal? Any downsides on that platform compared to Venmo? I'm worried no one has said that one yet, which makes me think I'm wrong or missing something.

Paypal you'd require to receive it as a "business" and pay a 2-3% fee for each payment. Yes, you can have them send as 'friends and family', but that's in violation of the agreement you make with Paypal and likely has fines attached.
0 Reply
Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
6y
Originally posted by @Joe Cassandra:
Originally posted by @Ben Kappel:
Does anyone use Paypal? Any downsides on that platform compared to Venmo? I'm worried no one has said that one yet, which makes me think I'm wrong or missing something.

Paypal you'd require to receive it as a "business" and pay a 2-3% fee for each payment. Yes, you can have them send as 'friends and family', but that's in violation of the agreement you make with Paypal and likely has fines attached.

Even worse than the fees/fines are the fact that the person paying you can "dispute" the payment at any time during the future, meaning Paypal will suck that money out of your account. Venmo does not do this, they instruct the parties to work it out among themselves. Do not accept Paypal for rent.
[email protected]Podcast Guest on Show #261
3 Reply
Kevin L.
Investor · Northern Virginia · Member since 2016 · 33 posts · 6 votes
6y
Does anyone know if there's a way to refuse/decline payment from an electronic source?
Reason I'm asking is in the case of a holdover tenant or something of that nature.
TIA
1 Reply
Eric NeithPro Member
Real Estate Agent · Hellertown, PA · Member since 2016 · 35 posts · 14 votes
6y
I use www.cozy.co It does a lot more than just collect rent. It accepts applications, screens tenants (billing them directly) and collects your rent. It automatically collects late fees that you can set. My only issue was with one tenant I allow them to make biweekly payments. So I bypass that with an understanding that their late fee gets charged on the 17th of the month. So he pays on the 1st and the 15th with no issues. Plus there is no fees because they hold your money for 7-10 days before they release it into a bank account you link to your Cozy account. If you want it quicker you can pay a $2.99 fee. Any other questions, just ask.
1 Reply
Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
6y
Originally posted by @Kevin L.:
Does anyone know if there's a way to refuse/decline payment from an electronic source?
Reason I'm asking is in the case of a holdover tenant or something of that nature.
TIA

I think this is electronic payment provider-specific. Reach out to your provider and ask if there is a way to turn this off.

[email protected]Podcast Guest on Show #261
2 Reply
Kevin L.
Investor · Northern Virginia · Member since 2016 · 33 posts · 6 votes
6y
@Mindy Jensen I believe for Venmo or even PayPal, you can just block their username or contact info but for Zelle, which is my preferred method, I don't see any block option but you're right, I can ask them if it's possible.
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