Do you need a more efficient way to collect rent from your tenants? Compare rent collection software options.
If you are a landlord or property manager, you have many responsibilities. For example, you may need to perform or oversee various types of maintenance on the apartments or houses you own. You also need to create rental agreements and coordinate various aspects of rental with your tenants. Among those things requiring coordination is the payment of rent by your tenants.
When it comes to collecting rent from tenants, your primary concern is probably choosing the amount you intend to charge. However, there is another matter of almost equal importance. You must determine the ways in which you are willing to receive rental payments. In the past, landlords primarily collected cash. Tenants also used checks or money orders frequently to pay rent. Today, there are many more options. For example, you can use rent collection software. Here is what you need to know about using modern technological conveniences to collect your rental income each month.
What Are Rent Collection Apps?
Rent collection apps are apps or software programs that allow landlords to collect funds from tenants, as needed. Some such apps are general money transfer apps. For example, Venmo is a popular general cash transfer app. However, people use Venmo for multiple purposes besides paying rent. Other apps are designed specifically for landlords. Often, such apps feature rent collection tools, as well as other tools to help landlords care for their properties and interact with their tenants efficiently.
What Are Some Benefits of Rent Collection Apps?
Rent collection apps have multiple benefits. They are designed to make life easier for landlords. Many also make the rent payment process easier for tenants. Since fund transfers are fast, tenants can pay at the last minute and still make their payments on time. Some other benefits of rent collection apps include:
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Funds Clear Quickly, Sometimes on the Same Day
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Travel Time to Collect Rent is Eliminated
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Online Payment is Typically More Secure Than Payment By Check
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Some Rent Collection Apps Provide Reminders to Tenants When Due Dates Are Near
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Landlords Can Manage Payments for Multiple Rental Units Easier and See Status Updates
What Are Some Top Rent Collection Software Options?
As a landlord, you can accept any forms of online payment you wish, including payment via software or apps designed for general fund transfers. For example, you might opt to allow Venmo payments. However, you miss many useful features when you use such apps. It is typically far better to use software designed specifically for landlords. Such programs and apps are often called property management tools because they are built to help you handle multiple aspects of managing the properties you own, not just rent collection. Here are some of the top rent collection software options and their benefits:
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Buildium has a reputation as the best overall software for property management. It offers tools for single-unit landlords, as well as landlords who manage large apartment complexes or multiple properties. The software includes lease information tracking, as well as real time data on the payment statuses of tenants. It allows the creation of payment reminders for tenants. Landlords can also take advantage of its other property management tools, such as vacancy management.
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Turbo Tenant is a multi-service app that allows landlords to post available rental units. It also offers online application and tenant screening tools. Existing tenants can make payments through TurboTenant. Landlords can also take advantage of several useful tools within the program, such as the rent-to-income ratio calculator or the move-in and move-out prorated rent calculators.
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SimplifyEm was created by real estate agents to provide the best tools possible for landlords who manage multiple properties at once. It allows landlords to easily keep online records of rent payments, send rent reminders, collect rent online, and send important forms or notices to tenants.
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Propertyware is a rent collection and property management app designed specifically for landlords who own many single-family homes. It includes tools for property listing, application processing, and payment collection. Propertyware also has other special features, such as direct text messaging with tenants within the program. It also includes the ability for landlords to link certain other programs they use to it for even easier property management.
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Avail is a full-service tool for landlords and tenants. Its features include the ability for tenants to submit maintenance tickets and the ability for landlords to create rental listings when vacancies are available. Avail also offers multiple educational articles for landlords.
How Much Does Rent Collection Software Cost?
The cost of rent collection software varies widely between apps. Some are completely free. Among the paid services, many offer short free trials or varying membership levels. The number of units managed also often affects the price. Here are examples based on the top services linked above:
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Buildium starts at $50 per month, but it also has a 14-day free trial option.
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TurboTenant offers most features free to landlords. However, there are optional extra features available for small fees. Tenants must also pay fees for credit card rent payments made through TurboTenant.
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SimplifyEm offers a free trial option. Its monthly fees start at $25 to manage up to 10 units. Fees increase for additional unit management.
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Propertyware monthly pricing starts at $1 per unit for basic membership, but there is a $250 minimum. Premium membership, which includes features like eSignature and two-way text messaging with tenants costs $2 per unit each month with a $450 minimum.
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Avail's basic program is free for landlords. Its upgraded program offers next-day rent payments and other bonus features. It costs $5 per unit per month.
Why is Online Rent Collection Better Than Receiving Checks or Money Orders?
As you can see, online rent collection has multiple benefits for tenants and landlords. You may appreciate the time you can save by using full-service apps for landlords most. Online rent collection also allows you to avoid difficult confrontations with tenants. It is a useful option, even if you only rent out one or two properties. If you manage many units it is almost essential. The key is selecting the rental management software offering the features you want within your budget. Examine all options before settling on a specific property management app.