The rental industry is constantly changing. As technology advances, markets change, and the world keeps moving, there are going to be opportunities to change the way you do business.
One aspect of the rental industry that has been rapidly changing in the last decade is the way that rental payments are collected. While everyone used to pay by cash or check, there are more and more ways that online payments and rent payment app or service options make it possible to securely pay rent.
While not all landlords or tenants have adapted to using these services yet, it seems possible that a large portion of the rental model will be based around these types of services in the future.
Are you familiar with rent payment apps and how they work? Are you aware of the services they offer and do you understand the security risks that could be involved with moving to an online payment system rather than collecting rent in person?
Considering the use of rental payment platforms is essential for helping to modernize your business as times change, it’s still never a good idea to just jump into things without first researching them. With the help of this guide, you can get an idea of how these payment portals work and how to choose the right fit for your business model at this time.
A Table Of Contents About Rent Payment Apps
- What Are Rent Payment Apps?
- Is It Safe To Use Online Rent Payment Platforms?
- How To Choose The Right Rent Payment Service?
- Rent Payment App FAQs
What Are Rent Payment Apps?
A rent payment mobile app is an app or platform that is designed to collect money from tenants for landlords to cover rent. Much like other money transfer apps, these services are made to securely load money from one party and deliver it to another party. The specifics of how the money is loaded and distributed depends on the specific app.
In addition to rent payment apps, there are many rental management companies and services that have their own rental payment portals online. These portals may not always have an app that can be downloaded, but they can typically be accessed online through any browser to securely pay rent through a specific payment portal.
Is It Safe To Use Online Rent Payment Platforms?
One of the concerns your tenants might have if you suggest using a rent collection software online is security. Is it safe for them to pay money online? How can they be sure you are going to get the money on time?
As long as you are choosing a reputable service to work with, it is safe to use online rent payment portals. Just as you transfer money between bank accounts, use online wallets to pay for bills, and send money to your friends after a night out, using online rent payment apps that are developed properly is safe and secure.
Of course, it is always important to keep an eye on your financial protections.
Tenants who have concerns about security will appreciate you taking the time to research and explain any specific security protocols the rent payment service you are planning to use have in place. Additionally, they might benefit from some general recommendations about how to ensure their bank accounts, debit cards, and other financial tools are secure.
Direct them to resources to help them learn about financial security if it seems like they would appreciate more information than you can comfortably or legally provide.
How To Choose The Right Rent Payment Service?
If you’re considering adding the option of paying through a rent payment service to your rental agreements, you will want to research the different options on the market to make the right choice for your business. Every platform has its own support and services, so the right fit for you and your tenants might be different than the right fit for another landlord.
In particular, there are a few aspects you should look into to find a rent payment app that will do what you need.
Availability
First, you want to make sure that you look for a service that is available on different types of devices including both Android and iPhone devices as not all tenants will have the same type of device.
Additionally, the best services will also offer an online portal login that doesn’t require an app.
Though it might seem uncommon, it is important to remember that not all tenants are going to have a smartphone or device that they can use to download an app. If you choose a rental service that offers an online portal as well as an app, more of your tenants will be able to consider using the service.
Fees
Many rental payment apps have fees involved in using them. Sometimes, the fee is taken when the app is loaded with money, so the burden will fall to the tenant. At other times, the fee will be taken when you withdraw or collect the money, so the burden will fall to you.
There are pros and cons to both of these fee structures, but the key is that you are aware of what the fee structure is so you can properly account for it.
If the tenant will be responsible for paying fees, they might choose to pay you directly rather than opt-in to the service, so most landlords choose fee-free rent payment apps or apps that charge fees on the landlord-side only.
The fee structure should play a large role in your decision about which type of rent payment system to use.
Processing Time
Another factor to consider when choosing between different rent payment apps is how much processing time there is to load money, send rental payments, and collect them. Many apps will give you quick turnarounds of one or two days, but others will have longer hold periods to ensure the money is all where it needs to be.
While this isn’t necessarily a bad thing, it is something you need to be aware of. If you are used to receiving physical checks by the 1st of the month and then start not receiving digital payments until the 7th or 8th due to hold periods, that might make a difference in how you need to manage the business finances.
Security
Research what type of security precautions the rental payment sites you are considering have in place. Are they a certified app? Do they have security measures in place? How do they handle missing payments or hacked information? Check the app’s FAQ for this information, or email the customer service team directly with your questions.
Additionally, you will want to ask about what type of protections are in place for both tenants and landlords in case there is a discrepancy between the parties. Not all apps include these protections, but they can be very important.
Additional Services
Many rent payment apps are offered as a distinct part of a larger rental management tool. Some of these tools include the following optional services:
- Messaging center between tenant and landlord
- Service requests
- Lease information
- Emergency alerts
- Lease renewals
The type of additional services offered and what is required to use them will differ from service to service. If you are a landlord looking to have a more comprehensive rental management tool, it can be worth researching what options might make your overall business process more efficient.
Rent Payment App FAQs
Is There An App To Pay Rent?
There are a variety of rent collection app options on the market. If you are a tenant looking to send your landlord money digitally rather than with a physical check, you will want to talk to them about setting up this type of service.
Both parties need to be in agreement about how this will work, and it’s best to only pay digitally if this has been amended into the lease to ensure the payments are tracked in a fair, accurate way.
What Is The Best Way To Pay Rent Electronically?
There isn’t one best rent payment service to pay with; the right app for you and your tenants is going to depend on what type of rental situation you are dealing with.
To determine how to best pay or collect payments electronically, use the guide above on how to choose the right app. With that information, you should be able to find a good fit for your needs.
How Do I Set Up Automatic Rent Payments?
There are a number of services that allow automatic rent payments to be set up. Some bank portals allow you to schedule transfers to your landlord at regular intervals. If a landlord uses an online payment portal or rent app, these services typically have a way to schedule recurring payments as well.
Remember to make sure you are prepared to have money in the appropriate accounts before setting up recurring payments so you do not have any bounced payments.
How Do I Pay My Rent At CVS?
In some areas, specifical rental payment services have partnered with CVS to allow tenants to come into the store and make a cash payment towards their rent.
Can I Pay My Rent With A Cash App?
In theory, any money transfer app can be used to exchange rent payments between landlord and tenant, but it is important to do so with caution. Landlords and tenants should only use these types of apps if they are both in agreement about doing so, and they have previously agreed upon the terms of doing just that.
As long as you have an agreement about how rent can be paid acceptably and the apps are being used according to their terms of service, there are a variety of payment apps that can be used for rental payments.
Conclusion
Rent payment apps are a great option for landlords and tenants who are looking for a more modern way to exchange money in an increasingly digital time, but it is important for landlords to remember that this cannot be the only way they accept rent payments.
Not every tenant is going to be savvy with technology, and it is always a good idea to offer a physical collection method as a backup.
Regardless of what types of rent collection you want to permit, these options should be clearly outlined in the terms of the lease or related agreements to ensure that both parties understand the options.
As long as the method of collection has clarity, you’ll be good to go on collecting rent with ease.