As a property management company, facilitating rent payment and collection can help you grow your business in an effective and timely way.
A great way to simplify this process is to use online rent collection services that include virtual payment portals and online tenant management systems.
Allowing your tenants to pay their rent online makes it easier for tenants to pay on time as they can set up automatic payments. Online rent payment services also help reduce the chance of late payments for you and late fees for your tenants.
No matter the size of your property management business, there are a range of online rent payment options available.
In this post, we will be sharing our top recommendations for online rent payment services for property management companies.
We will provide a general overview of each platform, including payment options, efficiency, and pricing.
Keep reading to find the online rent payment platform that is right for you and your business.
Why You Should Be Using an Online Rent Payment Service
First and foremost, let us explore the most important question: Why use an online rent payment service at all?
Here are some of the top benefits of collecting rent online.
1. Create an Automated Payment Schedule
Most tenants, especially younger ones, will be hesitant to write and submit monthly cheques. Mailing or providing post-dated cheques is an outdated process that is cumbersome and time-consuming for tenants.
In addition to the hassle for tenants, receiving rent payments via cheque can also be a challenge for property managers on the operational side. Rent payment via cheques involves recording the receipt of the cheque, depositing the cheques and waiting for the funds to clear.
With online rent payment, there is no extra work and payments are automatically recorded. This makes your property management accounting much simpler. Tenants can even schedule their rent payments to be withdrawn from their debit or credit card on a particular day, so they don’t have to think about it!
2. Decrease the Likelihood of Late Payments
An online rent payment software can send notifications and emails to tenants reminding them of upcoming rent and other payment deadlines.
These reminders, combined with the convenience of online rent payments, helps to reduce the potential for late payments.
3. Track all Rent Payments Digitally
As a property management company, keeping accurate and thorough records for your clients’ properties is critical.
With online rent payment platforms, you never have to spend time manually recording rent payments ever again. Instead, a tenant’s rent will be immediately recorded once paid online.
You can accurately see, in real-time, when the funds have been transferred, so you’ll never have to wait for long hold periods on funds again.
This ability to provide digital documentation in real-time is beneficial for property managers who manage large quantity of rental properties or multi-family units.
4. Increased Rent Payment Security
Online rent payments are also beneficial for both you and your tenants because they provide a secure option to move funds.
With online rent payments, you can rest easy knowing that banking information is encrypted and protected.
Also, tenants don’t need to worry about lost or stolen cheques and the associated risks that come with that. With a digital record trail, you can track tenant rent payments, so it’s nearly impossible for payments to get lost, stolen or misplaced.
Our Top Recommendations for Online Rent Payment Softwares
Now that you know the tangible reasons to use an online rent payment software for your property management business, let’s explore some of the best options.
Here are our top recommendations for online rent payment systems.
1. AVAIL
Avail is one of the best, most user-friendly online rent payment services on the market today. With an easy-to-use interface, Avail is our top pick for small to medium-sized property management companies.
Here are the top reasons we love Avail:
Options for Payment:
Avail is a user-friendly software that allows tenants to pay rent from either their bank account or using a credit card. Avail is accessible from any device – all you need is an internet connection!
For property managers, all you have to do is add the tenant’s name, email, rent amount and due date – then let Avail do the rest!
Features:
- Avail offers an auto-pay option for tenants to schedule recurring online rent payments straight for their payment method of choice.
- Rent payments are quick and hassle-free; funds are deposited into your account within two business days.
- In addition to online rent payments, Avail offers a wide range of property management services including maintenance tracking and tenant background checks.
Pricing: Avail offers two packages for property management companies: a free Unlimited plan and a premium Unlimited Plus plan.
Depending on the size and scope of your property management company, each plan has its advantages and disadvantages.
The Unlimited Plan ($0/unit)
- Unlimited units
- Syndicated listings
- Credit and criminal screening
- Leases
- Online rent payments
- Maintenance tracking
The Unlimited Plus Plan ($5/unit)
All the features from the Unlimited Plan, plus:
- Unlimited units
- Next-Day Rent Payments
- Waived ACH Fees
- Customizable tenant applications and leases
- Ability to create a website for your property
For more information on Avail, visit their website at avail.co
2. BUILDIUM
Buildium has built itself to be one of the top competitors in the property management industry across multiple different categories.
By offering a comprehensive, full-circle approach to automated property management, the Buildium software is easy-to-use, scalable for any size business and entirely customizable for your needs.
This award-winning software is best suited for large property management companies or property managers with quickly growing portfolios.
While the software is relatively intuitive, they also offer a comprehensive learning system called Buildium Academy. This learning platform teaches property managers and their teams how to use the software to its maximum ability.
Options for Payment:
Buildium is one of the few online rent payment platforms that allows tenants to use multiple payment methods, including with cash.
In addition to their online payment features, Buildium has partnered with PayNearMe, a company that allows tenants to make cash payments in person. This is a great option for tenants who don’t have access to debit or credit cards.
Features:
- Tenants can sign up for reminders, notifications, and a range of autopay options.
- Tenants can set their own payment schedule to ensure rent is paid on time. Tenants can arrange for monthly, bi-weekly and even daily payments. This is a great option for those who need additional support budgeting their rent payments.
- Funds from online payments, including eCheck and credit cards, will be deposited to your account approximately 2 business days after payment.
- For property managers who need access to their funds sooner, Buildium offers the option to pay an additional fee for immediate access to tenant’s rent payments.
Pricing: Contrary to many of the options on our list, Buildium does not offer a free version of its software.
Buildium offers three pricing plans for property managers: the Essential, the Growth and the Premium Plans.
For all three plans, there are a number of different fees associated with different types of transactions.
The Essentials Plan (starting at $50/month)
- Incoming EFT transaction: $1.00
- Outgoing EFT: $0.50 per transaction
- Credit Cards: 2.95% per transaction
The Growth Plan (starting at $160/month)
- Incoming EFT: Transaction fees waived
- Outgoing EFT: $0.50 per transaction
- Credit Cards: 2.95% per transaction
The Premium Plan (starting at $460/month)
- Incoming EFT: Transaction fees waived
- Outgoing EFT: $0.50 per transaction
- Credit Cards: 2.95% per transaction
It’s important to note that, at this time, Buildium does not offer stand-alone services for its online rental payment platform. This service is integrated into the full range of services offered by Buildium’s suite of comprehensive property management tools.
Luckily, Buildium is one of the top softwares on the market today, making it a worthwhile investment for any property management company.
For more information on Buildium, visit their website at buildium.com
3. CLEARNOW
ClearNow is a property management software that was created in 2000.
ClearNow specializes in online rent payment, so you get access to top-of-the-line software without any other bells and whistles.
This software is a great option for small to medium-sized property management companies.
Options for Payment:
With ClearNow, tenants don’t have to log in to a tenant management platform on a monthly basis. The software also doesn’t require internet access to pay rent.
Tenants simply need to fill out the Enrollment Form provided by ClearNow and mail in their documentation.
From there, their rent is automatically withdrawn and deposited into your account. No need to manage anything – simply set it up and forget about it.
Features:
- Tenants can set their own payment schedule (biweekly, semi-monthly or monthly).
- Property managers can set their own payment dates to collect rent from all tenants signed up for automatic withdrawals.
- This service does not accept partial payment. If the tenant does not have the full rent amount in their bank account on the withdrawal date, the transaction will fail.
Pricing: ClearNow is a very flexible platform to sign up for and begin using. There are no sign-up fees or long-term contracts necessary for property managers.
Fees for transactions:
- Monthly rent payment (per tenant) – $14.95/month (an additional charge to a single tenant is an extra charge of $2 a month)
- Bi-weekly rent payment (per tenant) – $4 per transaction
ClearNow’s payment structure is quite different from other platforms on our list, so we encourage property managers to do a full cost-benefit analysis before choosing a monthly versus per transaction system.
For more information on ClearNow, visit their website at clearnow.com
4. RENTEC DIRECT
Rentec Direct is a property management software that offers a full range of property management tools and automated processes.
Online rent payment is a primary function of the Rentec Direct software and is accessible for all-sized property management businesses.
Like Buildium, Rentec Direct also offers a cash rent payment option, making it an ideal choice for tenants who prefer to pay in cash.
Options for Payment:
Rentec Direct offers a suite of options for tenants looking to pay their rent online or with cash.
Tenants can use the online rent payment feature to pay their rent via debit card, electronic money transfer via their bank account or with a credit card.
Similar to Buildium, Rentec Direct has also partnered with PayNearMe, a service that allows tenants to pay their rent in cash. This is a particularly beneficial feature for property managers who manage buildings where many tenants have limited access to the internet or online payment resources.
Features:
- Rentec Direct allows tenants to choose the payment method and structure that works best for them, making it more likely that they’ll pay their rent on time and in full.
- Payments can be withdrawn on a monthly or weekly schedule. Tenants can choose the day of the month they’d like their withdrawal. This is convenient for tenants who may prefer to pay their rent on the day they get paid, for example.
- Property managers will receive tenant rent payments directly to their chosen bank account the next business day after the payment was made. If you would like to receive the payments on the same day as the withdrawal, there is a $0.50 process fee per transaction.
Pricing: Rentec Direct offers a tiered monthly subscription payment option for any sized property management business. Rentec Direct even offers a handy online tool to help find the best monthly subscription, based on the number of units you manage.
There are two packages: Rentec Pro and Rentec PM
The monthly cost for the Rentec Pro subscription is $35, with a two-week free trial.
The monthly cost for the Rentec PM subscription is $40, with a two-week free trial.
Rentec Direct also offers free tenant screening services with all of their monthly online rent payment subscriptions!
For more information on Rentec Direct, visit their website at rentecdirect.com
5. RENT REDI
Rent Redi is a great option for small or medium-sized property management businesses.
With Rent Redi, property managers can direct tenants to pay their rent through Rent Redi’s handy mobile app.
In addition to online payments, Rent Redi can also accept cash rent payments at over 90,000 retail locations.
Options for Payment:
Rent Redi offers customizable payment solutions for tenants. Tenants are able to pay their rent through Rent Redi with cash, credit cards, bank accounts, debit cards or ACH payments.
Tenants can schedule recurring payments to ensure their rent is paid on time, every time.
Features:
- With Rent Redi, you will receive rent payments within 4-5 business days. Unfortunately, there is no expedited option to receive your funds quicker.
- Rent Redi can set up automatic late fees for any tenant who does not pay their full rent on time.
Pricing: Rent Redi offers a very clear set of pricing options for property managers. If you purchase an annual plan, there is a $9 monthly subscription fee, plus additional transaction fees apply per transaction.
The transaction fees include:
- A $1 charge per ACH transaction
- A 2.9% + $0.30 service charge for credit and debit card transactions
For more information on Rent Redi, visit their website at rentredi.com
Other Notable Mentions
Here are some other notable online rent payment softwares for property managers:
TenantCloud: This platform is one of the most cost-effective. It uses Dwolla Payments or Stripe for tenant payments.
Cozy: Cozy is a free, easy-to-use platform for property managers. However, there are additional fees for expedited access to rent payment funds.
PayYourRent: This service is also free and even offers same-day payment processing for property managers.
eRentPayment: We love the different options this platform makes available to tenants. Tenants can choose between recurring and one-time payments to streamline the rent payment process.
TurboTenant: TurboTenant allows tenants to quickly pay rent online. You can receive the payments within 2 business days.
Bottom Line
As a property management company, rent collection is a very important service you offer.
By streamlining this process through an online rent payment software, you can make paying rent more convenient for your tenants.
As an overview, here are our top five recommendations:
- Avail
- Buildium
- ClearNow
- Rentec Direct
- Rent Redi
These are all great online payment software options.
While we only focused on these 5 online rent payment softwares, there are plenty of other options available to property managers, such as TenantCloud, Cozy, PayYourRent, eRentPayment and TurboTenant.
It’s important to find the online rent payment option that is the right fit for your property management business.
If you need help growing your property management company and generating more leads, contact Upkeep Media today.
