If you’re a landlord, chances are you’ve had to deal with collecting rent in one way or another. It’s not always the most straightforward task, but there are now online tools that can make the process a lot easier!
In this blog post, we’ll discuss some of the benefits of using an online rent collection tool, and we’ll give you some tips for choosing the right one for your business. Whether you’re just getting started as a landlord or you’ve been doing it for years, learn more about why online rent collection is a smart move.
Key takeaways
- Online rent collection tools allow landlords to collect rent 24/7 from anywhere in the world.
- Landlords and tenants can see updated rent payments in real time.
- Landlords can track payments with an integrated accounting system.
- These tools make it convenient for tenants to pay rent online.
- The tools create a record, which is important for real estate investors.
Collecting rent online has become a popular way for landlords and real estate investors to take payments from tenants.
There are many benefits to using an online rent collection tool, including collecting rent from anywhere in the world, 24/7 availability, automated reminders, automatic late fees, and the ability to track payments with an integrated accounting system.
Online rent collection is also a convenient way for tenants to pay their rent, as they can do so from the comfort of their home. In addition, online rent collection eliminates the need for paper checks and money orders.
Looking for an easy way to collect rent and other monthly fees from your tenants? Make it easy for tenants to pay on time and automate key tasks like deposits, receipts, and accounting. Stessa online rent collection is a win-win and is free for both landlords and tenants.
10 things to look for in a rent collection tool
A good rent collection tool should allow landlords to collect rent online from all of their tenants in one place. It should also be easy to use and allow tenants to pay their rent with a credit card or debit card. Additionally, the best rent collection tools provide landlords with detailed reports so they can track their rental income and expenses.
Here are 10 key features to look for when choosing an online rent collection tool:
1. Deposit options
In the past, collecting rent meant that tenants had to write a check and either mail it or drop it off in person. However, there are many different options for collecting rent today, including Automated Clearing House (ACH) and card payments. This is often the most convenient option for tenants, as they can make a payment anytime, anywhere.
2. Funding times
When it comes to choosing a good online rent collection tool, funding times are critical. Many landlords prefer to receive their rent payments as soon as possible, and with good reason. The sooner you receive a payment, the sooner you can use that money to pay bills, make repairs, or invest in other property. That’s why the best online rent collection tools offer quick funding times—usually within 5 business days.
3. Landlord fees
Many landlords are hesitant to collect rent online because they worry about being charged high fees. However, there are several rent collection tools that do not charge fees for receiving payments. This means landlords can collect rent without worrying about losing money to fees.
4. Tenant fees
Some rent collection tools charge tenants fees for paying rent online. This can be a problem for landlords because it may discourage tenants from using the tool, which can lead to late or missing payments. That’s one of many reasons why it is essential for a rent collection tool to not charge a tenant fees for paying rent online. This can help landlords collect rent more efficiently and improve the timing of cash flow.
5. Autopay option
There are many benefits to having a rent collection tool with an autopay option for the monthly rent. Perhaps the most obvious benefit is that it can help to improve cash flow by ensuring that rent is always paid on time. And, because tenants will have their rent payments automatically deducted each month, an autopay option can also help them reduce late payments and avoid late fees.
6. Late fees
Sometimes tenants may be late in making their payments, so it is important to use a rent collection tool that automatically charges late fees if a tenant does not pay the rent on time. This will send a clear message to your tenants that you expect them to make their payments on time, and it will help to offset any lost revenue from late payments.
7. Built-in banking
By using a rent collection tool that integrates with your checking account, you can avoid the hassle of managing multiple accounts, and avoid any fees associated with a third-party service. Plus, you’ll have access to powerful reporting tools that can help you track your rental income and expenses.
8. Security
One of the most important features of a rent collection tool is security. With so much personal information involved, it’s essential to protect tenants’ sensitive information.
9. Real-time updates
The best rent collection tools update rent payments in real time. This way, you can keep track of when rent is due and chase down late payments quickly and easily. In addition, using a rent collection tool can help you build a good relationship with your tenants, as they will appreciate the convenience and transparency of the system.
10. Accounting integration
A rent collection tool that integrates with an accounting system can make it easy to track what is owed, what has been paid, and expenses related to the property. This can be a valuable resource for landlords, real estate investors, and property managers.
Having all of this information in one place makes it easier to make informed decisions about the property and stay on top of finances. In addition, this type of system can provide landlords with a record if there are any disputes.
Overall, using a rent collection tool that integrates with an accounting system is important for managing rental property finances.
5 great online rent collection tools and apps
For landlords and real estate investors, collecting rent online is crucial. There are many online rent collection tools and apps available. This section will review 5 popular tools and apps for online rent collection.
1. Stessa
Stessa is an excellent all-in-one rental property management tool. It allows landlords to collect rent online, track expenses, and generate performance reports. It also has a user-friendly interface.
With Stessa, investors who open a Stessa Cash Management deposit account can further streamline their property management with online rent collection.
It allows investors to automate the manual parts of collecting rent, like depositing rent checks, charging late fees, and tracking payments for financial reporting. And, there are no fees for tenants or landlords. In addition, Stessa has robust security measures in place to keep tenant payment information safe and secure, so everyone has peace of mind.
Here’s a quick overview of Stessa’s online rent collection functionality:
- Deposit type: ACH
- Deposit times: 2 to 5 business days
- Landlord fees: None
- Tenant fees: None
- Autopay: Yes
- Late fees: Yes
- Real-time notifications: Yes
- Automatic accounting: Yes
As an added benefit, Stessa’s Cash Management deposit accounts currently earn 2.00% APY (compared to the national average interest of 0.03% on checking accounts as of July 2022, according to the FDIC). Stessa Cash Management users can earn interest on balances from automated rent collection deposits, CapEx account, and operating account.
Annual Percentage Yield (APY) of 2.00% is effective as of 8/5/2022. No minimum opening deposit or account balance required. Fees could affect earnings on the account. Stessa is a financial technology company, not a bank. Banking services provided by Blue Ridge Bank, N.A., member FDIC. The national rate is the average of rates paid by all insured depository institutions and credit unions for which data is available to the FDIC, with rates weighted by each institution’s share of domestic deposits.
Go here to create a free Stessa account.
2. Avail
Avail is another excellent option for collecting rent online. It offers a simple platform for landlords to collect and track rent payment history. It also has a mobile app for iOS and Android that makes it easy for tenants to pay their rent on the go. However, Avail charges tenants a fee to make rental payments each month, which may discourage some from paying the rent online.
3. Azibo
There are several pros and cons to using the Azibo rent collection tool to collect rent online. On the plus side, there are no landlord fees, and the system provides real-time updates and seamless accounting. However, one of the potential drawbacks to Azibo is that tenants are charged a fee for using a debit or credit card to pay the monthly rent.
4. Baselane
Baselane is another option to consider when choosing an online rent collection app. Like Stessa, the service offers an all-in-one financial platform for rent collection, banking, and bookkeeping. However, Baselane charges tenants a fee for paying the rent with a credit or debit card and does not offer an integrated cash management system.
5. TurboTenant
TurboTenant may be a good choice for those who want a comprehensive solution for managing their rental properties. The software offers some of the features that Stessa does, including thorough user verification and ACH rent payments. On the other hand, accounting integration may be limited, making it more challenging to track rental property performance in real time.
Wrapping up
There are many advantages to collecting rent online, especially for landlords with multiple properties in their portfolios. For one thing, online rent collection is convenient for both landlords and tenants. In addition, tenants can make their monthly rent payments from anywhere, at any time, and landlords can track all payments in one central location.
With Stessa Cash Management, businesses and sole proprietors can set up online rent payments through Stessa and automate the entire rent collection process. Users can also enjoy competitive cash-back and annual percentage yield (APY) rates, no account maintenance fees, no hidden fees, and seamless integration with Stessa’s financial tools.
