Landlords and tenants have a lot of options out there when it comes to exchanging rent: cash, check, money order, payment apps, or rental payment software…But which one is the best way to collect rent?
If you’re just getting started managing rental properties—or, even if you have a few under your belt— you may be looking at all these ways to collect rent to wondering which one is best for your business and what gives you the most control over the payment.
While rent payments are typically well-received, if you’re ever in the case of needing to block payments during an eviction process, something like a rent payment made via Venmo can really delay the process.
How to Collect Rent Payments
There are a lot of ways to collect rent that involve a physical exchange of money, such as cash, check, and money order.
While each of these ways to collect rent does have their merits (for example, with cash you literally have the money in your hand), but each comes with drawbacks as well.
Cash requires a trip to the ATM or bank—for tenants and landlords. Between the withdrawal, handoff, and return trip to the bank, this can add days onto collecting rent— which doesn’t make cash seem like the best way to collect rent as you may have thought.
Checks and money orders run into similar issues—with the added uncertainty of usually have to make a trip via the mail! Between mailboxes and delivery routes, your rent check can easily disappear into the unknown void. This can create tension issues as well for tenants and landlords: they say the check is in the mail, you have no way of knowing if it actually is or not.
Ways to Collect Rent Electronically
Aside from the “paper” ways of collecting rent, there are several ways to collect rent electronically. For example, with payment apps like Venmo and Cashapp or rental payment software for landlords and tenants.
We’ve written before about using Venmo to collect rent and why it’s not ideal—you’ll see why in this article as well. Landlords usually ask about payment apps because tenants ask about using a payment app.
Of course, you don’t want to make it any harder for the tenant to pay rent, however, it’s important to remember that your rental properties are a business and should be treated as such. You wouldn’t, for example, send a Venmo transaction to pay for your groceries at the grocery store, nor should you accept rent payments via payment apps either. It can get messy, especially in an eviction situation.
There are more benefits to collecting rent electronically by using rental payment software like RentRedi.
RentRedi is designed to collect rent and help you manage your rental properties. All its features are created to ensure you have the best way to collect rent from tenants, while also managing other important facets of your business: exporting reports & accounting, maintenance coordination, e-signing leases, listing & marketing your rentals, and screening tenants.
Feature Comparison of How to Collect Rent from Tenants
|RentRedi||Payment Apps (Venmo, Cash App)||Cash||Check||Money Order|
|Automatic lease charges||✅||X||X||X||X|
The Best Way to Collect Rent from Tenants
When it comes how to collect rent from tenants vs the best way to collect rent payments, it’s hard to argue that any way is better than a rental payment app like RentRedi.
RentRedi’s is specifically designed to ensure that landlords can easily collect rent online or from their phones.
Once landlords set up their lease charges, tenants are automatically charged each month. They simply go into their RentRedi tenant app and tap the month they need to pay. Additionally, their tenant app also lets them set up recurring rent reminders and enable automatic rent payments.
For landlords, RentRedi offers more control over the rent collecting process: you can set up lease charges for the entirety of the lease, set up automatic late fees, send tenants in-app rent reminders, export your payments to your preferred accounting method, create customer reports, and, importantly, block payments should you ever need to.
When it comes to the best way to collect rent from tenants, I’ve said before, and I’ll say it again: neither cash, checks, or Venmo can do all that! RentRedi is the best way to collect rent online.