In the digital age, many landlords are turning to payment platforms that make transfers quick and easy. Platforms such as Venmo and Zelle have become a popular option for landlords who are wanting to receive rent payments via bank-to-bank transfer. Although these platforms offer quick transaction times and small fees, they lack in their ability to offer landlords industry-specific features that many rely on during the rent collection process.
In this article, we will highlight the features of each platform and how they differ from industry-specific platforms such as PayRent.com
1) PayRent.com and other rent specific platforms:
Transaction Limits: PayRent.com currently does not have a transaction limit, therefore, landlords are able to accept and receive any amount.
Transaction Timeline: Payments generally take 2-3 business days with next-day and same-day transaction times becoming available in the very near future.
Sending restrictions: PayRent.com allows for renters to make a rent payment to their landlord at any time and offers the ability for the landlord to keep track of payments in a way that makes sense to their business. In addition, PayRent.com allows for the ability for Landlords to block payments and only receive payment in full from their tenants. This can come in handy for troublesome tenants and in case of eviction.
Price: The service is free to all landlord and property managers. All fees are charged to the tenants on a per transaction basis. It is $2.55 per ACH transaction and credit card payments are charged at 3.5% which can be helpful for tenants who are trying to build their credit or gain points and rewards.
Zelle has become increasingly popular for landlords as it links to most large financial institutions effortlessly. However, there are also restrictions that apply when using the platform that makes accepting rent cumbersome.
Transaction limits: According to Zelle’s terms and conditions, “Transfers to established recipients from a [Large Financial Institution] Account may be made up to a daily aggregate dollar limit of $2,500 and a 30-day aggregate dollar limit of $20,000. Transfers to new recipients are subject to lower limits.” This can create problems for landlords who have higher rent amounts.
Transaction Timeline: According to Zelle, payments generally take up to 2 business days to transfer from the sender to the recipient.
Sending & Receiving restrictions: Although Zelle offers an app that allows the renter to send their rent payment with the click of a button, the recipient of that payment is unable to cancel it. This can be an issue if the landlord is going through eviction and is attempting to block payments from their tenant.
Price: At the moment, Zelle is free to all of its users, there is no cost to use the service.
Like Zelle, Venmo is similar in its functionality.
Transaction limits: “When you sign up for Venmo, your limit is $299.99. Once we have confirmed your identity, your weekly rolling limit is $2,999.99.” Again, this limit can be problematic as some rental properties exceed that amount.
Transaction timeline: Transactions can show up in the user’s “Venmo balance” immediately. In order to transfer the funds from a Venmo balance to a bank account, there are two options; funds can be transferred immediately via a debit card with a fee of 1% or can be transferred via bank-bank transfer in 1-3 business days.
Sending restrictions: Venmo was created to pay friends and family and is specifically not to be used for business purposes. According to their terms and conditions: “Venmo may not otherwise be used to receive business, commercial or merchant transactions, meaning you CANNOT use Venmo to accept payment from (or send payment to) another user for a good or service” And similar to Zelle, payments are not able to be canceled once they are initiated and any refunds must be settled outside of the platform.
Price: The platform’s only cost is applied when the user initiates an instant transfer at 1%.
With so many options available it can be difficult to choose what is best for accepting rent payments. All 3 options highlighted are much more convenient and cost-effective in comparison to checks, but managing properties is a serious job that requires expert record-keeping and attention to detail. Although platforms such as Zelle and Venmo are convenient and readily available, rent specific platforms such as PayRent.com are just as convenient, comparable in price, and offer more features that offer landlord protection and industry-specific features.