Comparing the Best Online Rent Payment Tools

Electronic rent collection is increasingly popular with both Landlords and Tenants. As more Landlords switch to electronic rent payments, we’ve gotten lots of questions about what platform to use. 

After looking at the tools available, we decided to create our own system designed specifically for rent payment and focused on making rent collection easy for both Landlords and Tenants. 

We’re so excited to introduce Landlords to our new online Rent Payments system, which automates the entire rent collection process. We’ve worked hard to ensure it’s the best solution for Landlords. 

To help you decide what electronic rent payment option is right for you, here’s a comparison of some of the most popular rent collection platforms for Landlords. To learn more about online rent collection or set up online Rent Payments, visit ezLandlordForms.com.

Using Zelle for Online Rent Payment

Zelle is a payment network that lets people send money to family, friends, and other contacts. Users download the app and enroll using their email or phone number. Once enrolled, you can send money directly to another user’s bank account. 

There are no fees to use Zelle, money goes directly to the Landlord’s bank account, and funds usually are available within one business day. 

Cons of Collecting Rent With Zelle

While it’s fast and affordable, there are some significant challenges to using Zelle to collect rent. 

• Not all banks and credit unions partner with Zelle. The Landlord’s and Tenant’s bank both have to offer Zelle to use it for rent collection. This means that even if the Landlord’s bank offers Zelle, some Tenants may be unable to pay rent using this system. 
• There are daily transaction limits ranging from $1,000 to $5,000, depending on the bank. This can result in some Tenants paying rent over multiple days, which creates confusion and issues for both parties. 
• Autopay is not available unless the Tenant’s bank allows it. 
• Landlords are not issued a 1099-K, which means more work during tax season. 
• Landlords cannot prevent partial payments or reject payments, which becomes an issue with Tenants facing eviction. 

Collecting Rent Payments With Venmo

Venmo is a payment app that allows users to send payments to one another. Landlords and Tenants can easily set this up by creating an account. Landlords must collect rent through a business account and will be issued a 1099-K if they collect more than $600 in rent. 

Using the app, the Tenant can electronically send rent payments to the Landlord. Tenants can use a debit card or bank account to send rent payments. The payment goes into the Landlord’s Venmo account and then the Landlord transfers the money to a connected bank account. 

Cons of Collecting Rent With Venmo

While Venmo is easy for Landlords and Tenants to use, it’s not a great choice for most Landlords. 

• Venmo charges a 3% fee for business transactions, which can significantly cut into rental profits. 
• There is no option for Tenants to set up automatic payments. 
• There is a daily transaction limit of $3,000, which can force some Tenants to pay rent over multiple days. 
• There is no recourse for misguided payments. If the Tenant sends rent to the wrong user, there is no way to recover that payment. 
• Landlords cannot prevent partial payments or reject payments, which can create issues during an eviction. 

Using PayPal for Rent Payment

To use PayPal for rent collection, both the Landlord and Tenant create a PayPal account. Once the accounts are set up, the Tenants can pay rent using a bank account, debit card, credit card, or funds in their PayPal account. 

Payments are processed quickly and generally show up within one business day. Landlords who collect more than $600 in rent will receive a 1099-K each year. There are systems in place for Landlords to request a refund if there’s a valid dispute over payments, and PayPal offers Tenants the option of setting up autopayments.  

Cons of Collecting Rent With Paypal 

While PayPal has some benefits that Zelle and Venmo don’t, it still has some significant disadvantages as a rent collection system. 

• Rent must be collected as a business transaction, and there is a 3% charge for all business transactions. 
• Funds go into the Landlord’s PayPal account, not their bank account. Landlords then must transfer rent payments to their bank account. 
• Landlords cannot stop partial payments, which can create issues during evictions. 

Online Rent Collection With EZ’s Rent Payments

Unlike all three platforms discussed above, ezLandlord’s Rent Payments system was designed specifically for rent collection. It was created to make rent collection seamless for both Landlords and Tenants. 

Some of the features that users love the most are: 

• It’s easy to set up and easy to use.
• Tenants can schedule autopayments. 
• There are no fees or additional charges for Landlords with a subscription or lifetime account. 
• There are no transaction fees for Landlords; Tenants pay a nominal $3.00 fee for each ACH payment. 
• Tenants receive reminders each month when rent is due. 
• Rent payments are automatically deposited in the Landlord’s bank account. 
• There are no transaction limits. 
• Landlords who collect more than $600 in rent are issued a 1099-K each year. 
• When dealing with Tenants behind on rent, Landlords can remove current balances due and pause future payments due. 

Start Collecting Rent the EZ Way 

Landlords benefit from collecting rent using a system designed for this purpose. Our Rent Payments system automates the entire rent collection process and is one more way we make it easy for Landlords to manage their rental properties. 

Sign up today to start collecting rent the EZ way.