Summary: The most reliable way to collect rent is through online payment platforms like Apartments.com, which provides automated reminders, easy tracking, and flexible payment options. Other methods include in-person rent collection, ACH transfers, and using a property manager, each with unique pros and cons.
Comparison of Rent Collection Methods
|
Method |
Cost |
Speed |
Reliability |
Best For |
|
Online Rent Platforms |
Free–Low |
Fast |
High |
Tech-savvy tenants |
|
In-Person Rent Collection |
Free |
Medium |
Medium |
Local rentals |
|
Secure Drop Box |
Low |
Medium |
Medium |
Multi-family properties |
|
ACH Debit |
Varies |
Fast |
High |
Traditional renters |
|
Payment Apps (Venmo, etc.) |
Varies |
Fast |
Medium |
Familiar app users |
|
Checks by Mail |
Low |
Slow |
Low |
Traditional renters |
|
Property Manager |
8%–12% of rent |
Fast |
High |
Passive income landlords |
|
Apple Pay / Google Pay |
Low |
Fast |
High |
Mobile-first tenants |
1. Set Up Online Rent Payments
Why It Works: Most tenants expect the option to pay rent online. Platforms like Apartments.com Rental Manager offer automation, email reminders, and flexible payment methods (ACH, credit/debit). You can also track rent status, expenses, and export tax forms directly from your dashboard.
Pros:
- Automated reminders and late fee enforcement
- Free ACH payments or low-cost card options
- Built-in accounting and tax features
Cons:
- Some tenants may resist digital methods
Paying rent online makes things easy, convenient, and if you are renting to younger tenants (especially Gen Z), they will likely expect to pay rent this way.
2. Collect Rent in Person
Why It Works: Direct collection gives landlords a chance to inspect the property monthly and address tenant concerns in person.
Pros:
- Immediate payment confirmation
- Build stronger tenant relationships
Cons:
- Time-consuming and inefficient with multiple properties
- Risk of tenant no-shows
- Sharing your home address could cause safety concerns if a dispute arises
3. Set Up a Drop Box
Why It Works: Ideal for landlords managing multi-unit properties. Tenants can deposit payments on-site in a monitored drop box.
Pros:
- Convenient for tenants
- Eliminates need for direct contact
Cons:
- Potential for theft without surveillance
- Requires regular collection by landlord
4. Accept Rent Payments Through an ACH Debit
Why It Works: ACH debits allow tenants to automate monthly rent payments directly from their bank accounts.
Pros:
- Reliable recurring payments
- Low risk of late payments
Cons:
- Potential setup fees
- May require a merchant account
5. Use Online Payment Apps
Why It Works: Many tenants are already familiar with payment apps like PayPal, Venmo, and Zelle. Rent can be sent quickly and easily.
Pros:
- Fast and familiar for tenants
- Minimal setup required
Cons:
- Potential fees
- Limited landlord protections
- Informal transaction records
6. Accept Checks by Mail
Why It Works: This method appeals to traditional tenants but comes with timing and documentation risks.
Pros:
- Simple to implement
- Works well with a PO Box
Cons:
- Mail delays and lost checks
- Young tenants may not know how to write checks
- No real-time payment confirmation
7. Hire a Property Manager
Why It Works: Outsourcing rent collection and tenant management to a professional simplifies operations for landlords.
Pros:
- Handles rent, repairs, and evictions
- Saves time and reduces stress
Cons:
- Management fees (typically 8%–12% of rent)
8. Accept Rent via Apple Pay or Google Pay
Why It Works: Platforms like Apartments.com allow tenants to pay rent using Apple Pay or Google Pay, making it even easier for mobile-first tenants to stay current.
Pros:
- Extremely convenient for mobile users
- Secure and fast transactions
- Option to split rent with roommates
- Tenants can choose payment date and automate payments
Cons:
- Requires a compatible device
What Not to Do: Accept Cash Payments
Cash is hard to track and dispute-prone. Always use methods that leave a paper trail or digital record.
Know Your Rent Collection Laws
Before implementing any rent collection method, check your state and local landlord-tenant laws to ensure compliance with notification, grace periods, and acceptable payment forms.
FAQs About Rent Collection
Q: What is the most secure way to collect rent? A: Online platforms like Apartments.com provide fast, secure rent collection.
Q: Can I require tenants to pay rent online? A: Check your local laws. Some states require landlords to offer multiple payment options.
Q: What happens if a tenant doesn't pay rent on time? A: Apartments.com automates late fees and sends out payment reminders. If a resident still doesn't pay, you'll need to take additional steps, up to and including starting the eviction process.
This article was originally published on February 24, 2020 and has been updated.
