Payment apps like CashApp, Venmo, and Zelle have become popular forms of rent collection in the last year, however there are a lot of reasons why landlords shouldn’t use Venmo for rent.
Of course, many tenants—especially tech-savvy ones—are looking for a more convenient way of paying rent than the traditional checks or cash methods.
Yet, as a landlord, your #1 priority is to run your business efficiently and make sure that rent is collected no matter what form it comes—cash, electronically, or otherwise!
Why Landlords Shouldn’t Use Venmo For Rent
Allowing tenants to submit rent payments via Venmo, CashApp, or Zelle might be efficient and convenient for the tenant. Ultimately, managing your rental properties is a business, so it’s important that you factor in not only the pros of payment apps for rent, but also the cons of using apps like Venmo to collect rent.
Venmo Is Now Charging Fees For Business Transactions
As of July 20, 2021, Venmo users who use their personal accounts for business services (i.e., like a landlord using Venmo to collect rent from a tenant), will be subject to new fees.
Venmo, the payments app owned by PayPal Holdings Inc., will soon allow users to sell products and services on their personal accounts, for a fee…
A Venmo spokeswoman said the latest changes mean users who don’t want to create a business profile will be allowed to accept money for goods and services without worrying about running afoul of the rules. They will be charged the same 1.9% plus 10-cent fee applied to customers using business profiles.– Wall Street Journal
This fee will be passed on to you, the landlord, to collect your rent. Additionally, if personal accounts continue transacting while avoiding payment processing fees, you stand to be banned from the platform.
Benefits of Using Property Management Software Instead
However, there is no denying that the ability to use technology to easily submit and collect rent payments is rapidly picking up steam in the real estate world.
As a landlord you might enjoy the comfort and convenience that collecting rent online has brought you. Tenants, too, prefer the modern ability to submit rent payments right from their phone.
RentRedi not only offers all the benefits of convenience & comfort with the ability to pay & collect rent via an app—but it’s also beneficial at helping you manage the rest of your business as well!
Better Rent Collection For Your Business
While Venmo can be useful for collecting rent in a pinch, long-term, you’ll want to set up a rental payment software like RentRedi as a best practice for online rent collection.
Not only are Venmo’s new business transaction fees why landlords shouldn’t use Venmo for rent, but it also limits the *types* of rent payments you can collect as well. However, with RentRedi, you can provide more accessible rent payment options to tenants.
- Tenants submit rent payments (ACH, card, cash) right from their RentRedi tenant app on their phone
- Processing fees are charged to the tenant, but the landlord can assume the fees if desired
- Landlords can collect rent online via their web dashboard or the RentRedi app on their phone!
- Offer tenants the ability to report their rent payments to credit bureaus as a perk of using RentRedi to pay rent
Not only does collecting rent with RentRedi benefit you, the landlord, but the tenant also gains the ability to report their on-time rent payments and improve their credit score.
Better Property Management Features For Your Business
Another reason why landlords shouldn’t use Venmo for rent collection? Because that’s all Venmo is limited to!
However, with RentRedi, you are unlimited…seriously! RentRedi’s plans feature unlimited units, tenants, and teammate accounts so you can manage all facets of your rental business—without paying more!
In addition to RentRedi’s online rent collection features, landlords are also able to:
- List and market their vacancies on Realtor.com, Zillow, Facebook Marketplace, and Craigslist
- Find and screen tenants quickly with our prescreen questionnaire, free mobile application, and TransUnion-certified background checks
- Send, sign, and store leases—all from RentRedi’s platform at no additional costs
- Set up rent charges for the entire lease at once so collecting rent is almost automatic!
- Manage maintenance requests and outsource to vendors, if desired
Say Goodbye to Venmo & Hello to RentRedi!
Using property management software, like RentRedi, is much better for online rent collection, mobile rent payments, and managing your rental business.
As a landlord, your #1 priority is to ensure your rental business is optimized for cash flow!
RentRedi offers more benefits than Venmo (for both landlords & tenants) for online rent collection and mobile rent payments. Additionally, RentRedi streamlines finding & screening tenants, lease signing, maintenance, and listing vacancies as well!