If you’re a landlord, you probably know all too well that collecting rent can be as difficult and frustrating as a root canal sans Novocain. (Ouch!) Especially if you’re trying to collect your payments the old fashioned way, through a physical transfer of funds. (Double-ouch!) The cumbersome hurdles of physical rent collection are almost too many to list, including:
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Checks bounce.
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Tenants pay late.
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Late fees are a nightmare to assess and collect.
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Physical invoices are a headache to create and maintain.
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You must physically collect the checks, sometimes driving long distances.
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You must physically cash the checks, sometimes driving long distances.
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Some tenants who wish to hand-deliver their checks have ulterior motives for pinpointing your home address.
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Etc…
Thankfully there is a better way to collect rent – online.
Here’s the deal: Collecting rent is a necessary evil in the landlord biz, but there is a growing number of helpful websites which can simplify this monthly exercise, streamlining the process and minimizing headaches for you and your tenants. Enough with the long trips, hours of invoicing and waiting for mailed checks!
We recently surveyed some of these helpful websites for you, in order to make the online rent collecting process less painful (and more lucrative). They all offer useful solutions, but each site varies a bit in terms of functionality and cost. Which is best? You be the judge.
RentMonitor.com
Overview: RentMonitor is a pay-as-you-go rent collection website that makes it easy for landlords to manage all of their rental property in one place on the web. With RentMonitor, tenants pay their rent online and the money is automatically deposited into your bank account each month.
How It Works: This website saves time and money for you by automating the rent collection process. Landlords and tenants alike remain on the same page throughout the entire process as RentMonitor sends rent invoices, follows-up on late payments, notifies you when payments are pending, and notifies you again when payments have cleared the bank. Simply enter your rental information and submit your application to get started.
Helpful Videos: Click here and here for helpful videos about RentMonitor.com.
Cost: There are no contracts, and you pay month-to-month. You are only charged once you have completed the application to collect rent online. Transactions are affordable at $2.00 apiece, with a $10.00/month minimum.
Official Website: www.RentMonitor.com
RentShare.com
Overview: RentShare offers a simple way for landlords to step away from the rent collection process, so tenants can automate the payment system for themselves. RentShare also allows tenants to split expenses with their housemates, such as utilities, so they can stop chasing each other for money.
How It Works: This website is unique in that landlords don’t need to be involved (at all) in the automated payment process. Each of your tenants – including multiple tenants on the same account – can receive automated email alerts and pay their rent using (i) a checking account, (i) a credit card or (iii) a debit card. Renters can add utilities and other household expenses, and RentShare adjusts everyone’s rent totals each month to even-out the debts automatically. Rentshare will send you, the landlord, a check and a note detailing who has paid and when they paid.
Helpful Video: Click here for a helpful video about RentShare.com.
Cost: Account setup is free. Transaction fees are detailed below…
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$1.95 when paying with a bank account
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2.9% fee if you use a credit or debit card
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Free rent payment tracking
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Free expense calculator
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Free email reminders
Official Website: www.RentShare.com
ClearNow.com
Overview: ClearNow is a user-friendly service that lets you, the landlord, collect rent when your tenants get paid. When your tenant deposits his/her own paycheck, rent is debited from your tenant's bank account and directly deposited to your bank account – within three days of the debit transaction.
How It Works: Each tenant account debits on a specific day and credits to your personal bank account. There are no setup fees, and fees are based on your debit day. You are charged only when you attempt to debit a tenant.
Cost: Pricing schedules and fees are detailed below…
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Single Monthly Debits (on the 1st, 5th, 15th or 25th) = $14.95/month. (Each Additional Debit = $2.00/month)
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Semi-Monthly Debits (on the 3rd & 17th) = $4.00/debit.
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Bi-Weekly Debits (on every other Tuesday) = $4.00/debit.
Official Website: www.ClearNow.com
Other Options
In addition to our “Top 3” picks above, you may also be interested in a few other options for online rent collection. Each of the following websites (listed in alphabetical order) includes an "extra helping" of useful features which may come in handy for you, depending on your business needs:
Bottom Line
Each of the websites listed above have solid reviews and history behind them. They appear to be updated regularly and provide simple, but feature-rich experiences.
If you are interested in the most hands-off (and tenant-friendly) solution for collecting rent payments online, then we recommend RentShare.com. Otherwise, for those of you who would like to be a little more involved in managing your rent-related finances, we recommend RentMonitor.com.
But regardless of which site you prefer personally, isn’t it time to start saving more time and money through online rent collections? Stop chasing paper, and take advantage of these intuitive, secure, and reliable e-collection solutions. Collect smarter, so you can start making money faster.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.