With many online payment tools transforming how landlords collect rent, picking a tool that fits your needs is essential. Online payment tools, like PayPal, offer convenience and ease of use but struggle with the nuances of collecting rent. This is why dedicated rent collection tools, including Apartments.com’s Rental Manager, are popular among landlords. They offer comprehensive features that streamline managing a property and the ability to take care of several responsibilities in one place. See how Apartments.com makes collecting rent easy compared to PayPal.
- What is the best way to collect rent?
- Using PayPal to collect rent
- Using Apartments.com to collect rent
What is the best way to collect rent?
The debate about which payment method is better for collecting rent evolves with developments in technology and payment services. Many landlords are moving away from physical payments and towards electronic rent payments. While many still accept checks, landlords may prefer electronic payments because of their convenience and efficiency — no more having to wait for the mail or worrying about losing a check.
Rent collection tools offer several ways for landlords to collect rent electronically: ACH, credit/debit cards, and digital wallets. ACH is considered one of the best ways to collect rent from renters because it is convenient, fast, secure, and inexpensive. Credit/debit cards and digital wallets are popular methods; they each have pros and cons. Other payment services, such as Venmo, Zelle, and PayPal, are alternative ways, but these can come with downsides.
Using PayPal to Collect Rent
PayPal is widely used, and many people are familiar with it, making it enticing to use it to collect rent. It is convenient and simple but not the best tool for rent collection because it lacks landlord-specific design and features. PayPal is a more general payment service than Apartments.com, which is designed with landlords in mind.
Online payment services add an extra step in getting your money to your bank in exchange for convenience. Just like with Venmo, PayPal has all transactions go to your PayPal account, and then you have to transfer them to your bank.
PayPal processing times and fees
It usually takes 1-3 business days for payments to process with PayPal, depending on your bank. PayPal does offer instant transfer, meaning you should see the money in your bank account in minutes. However, instant transfers have limitations like a fee of 1.5 percent and restrictions on withdrawal amount.
PayPal makes you, as the landlord, pay any fees instead of your renter. You won’t get the entirety of the rent because some of it will go towards those fees. PayPal has personal and business accounts, but the business accounts impose fees. Prices and fees can change, so be sure to check PayPal’s website for the most up-to-date information if you want to use PayPal.
- Send/receive money for goods and services: 2.00 percent + fixed fee
- Standard credit and debit card payments: 2.99 percent + fixed fee
Features on PayPal for landlords
Since PayPal is not designed with landlords in mind, it does not have specific functions to send rent reminders. Depending on what PayPal function you use to bill your renters, you may be able to send something similar. PayPal is primarily used by businesses, so it does not have an automated rent collection system like Apartments.com.
There are potentially some workarounds, but those might not work as well. Another huge feature PayPal lacks is the ability to set late fees. Late fees are essential to incentivize renters to pay rent on time and help you recoup any potential losses from late rent payments.
Partial payments and PayPal
When using PayPal, you may have difficulty remedying mistakes and issues, such as if your renter sends money to the wrong account or continues to pay even after their lease has ended or they are being evicted. PayPal’s Seller Protection program does not include real estate. PayPal does have blocking and cancellation capabilities, but they are more suited for business needs rather than landlord needs.
Using PayPal for multiple renters
Keep in mind that if you have multiple renters sharing rent, there is no setup for roommates to pay you on PayPal. The only options are getting each person to pay you their portion or having one person pay the entire amount and then figure out repayment among themselves.
Using Apartments.com to Collect Rent
Apartments.com simplifies landlord responsibilities with tools to set up late fees, flexibility for roommates, multiple ways for renters to pay, Express Pay, and no hidden fees. It is designed specifically for landlords, with many handy features to help you.
Many landlords use Apartments.com because they can connect it to their bank account; payments go straight to your bank without you having to transfer them. Apartments.com prioritizes ease of use to streamline collecting rent, so you don’t have to waste time transferring money between accounts.
Processing times and fees on Apartments.com
On Apartments.com, ACH payments usually take up to five business days, but most transactions go through in two business days. Credit and debit payments average two business days. Express Pay automatically sends payments faster for renters in good standing. There is no work on your part; the system identifies low-risk ACH payments and speeds them up so you can get paid a day earlier.
Apartments.com is a free service for landlords to collect rent online with any fees placed on the renters, so you get the full amount. Renters can choose to pay with a checking account for free as there is no fee. There is a small fee if they would rather pay with the other options.
- ACH: free
- Credit/debit card, Google Pay, or Apple Pay: 2.75 percent fee
Apartments.com rent collection tools
Sending emails and reminders can take up a lot of time, especially if you have several renters. Apartments.com can send reminders for you, with reminders about getting new renters to set up their payments, rent reminders before and on the day of it being due, payment on the way notifications, and emails if late fees have been added. Free up your time by letting Apartments.com remind renters for you.
Like the automated reminders, you can automate rent payments. No more having to charge people every month; set it up once, and you are done. It can also be automated for renters. Renters can put their rent on autopay to prevent late or missed payments and make a recurring responsibility automatic.
Late fees are an integral resource in a landlord’s toolbox to encourage renters to pay their rent on time, but they can sometimes be a pain to calculate and enforce. With Apartments.com, it is easy to create automatic late fees. You can set the amount and a grace period with one click.
How to handle partial rent payments with Apartments.com
Apartments.com is designed for landlords; with the Trust & Safety team at your back, you can rest easy knowing your money is protected. By specifically inviting your renters to pay, you ensure there are no issues with mistaken identities or misspellings. In case of any potential problems such as incorrect/partial amounts being sent or needing to reject payments, you can end rent collection to prevent it. This is important because you cannot accept any further payments if you want to evict a renter for non-payment. However, for payments in progress, the renter must contact their bank to stop it.
Simplified process for roommates on Apartments.com
Many people have roommates nowadays, adding another layer to the process of collecting rent. With Apartments.com, landlords can simplify rent collection by creating one rent payment system and adding all paying roommates. Enter the total amount of rent, and each roommate can contribute their portion of the rent and schedule payments.
Start Collecting Rent Free on Apartments.com
Check collecting rent off your monthly to-do list by automating it with Apartments.com. Don’t worry about any fees or payments; it is free for landlords to use. With many helpful tools created with landlords in mind, everything you need regarding rent collection can be handled. From late fees to reminders, Apartments.com will take care of it.
FAQ
Can I use PayPal to collect rent?
Using PayPal to collect rent may be tempting because of its convenience and widespread use, but due to its lack of landlord-specific features, it might not be the best option. Pick a tool that has landlords in mind, like Apartments.com’s Rental Manager, and look for features like stopping rent collection, rent reminders, late fees, and more.
Does Apartments.com charge a rent collection fee?
Collecting rent with Apartments.com is free for landlords. Renters will have some low fees they will pay, so you don’t have to worry about losing any money to fees. Renters can pay using ACH for free, and if they use a credit or debit card, Google Pay, or Apple Pay, there is a 2.75 percent fee.
Does PayPal charge a fee?
If you are using a business account, then you will be charged a fee of 2.00 percent + a fixed fee for sending/receiving money for goods and services; for standard credit and debit card payments, there will be a fee of 2.99 percent + a fixed fee.
