Modern landlords don’t want to have to spend hours chasing down paper checks and working to track down payments. These apps can help make this process incredibly hassle-free. Apart from convenience, they can provide a strong backbone that protects your financial interests as well as the information you share with your tenants. This article will help walk you through what features to look out for in these apps and highlight the best app for landlords to collect rent so your money is collected as soon as possible.
Why Security is Non Negotiable in Rent Collection
Before we get down to each application, let’s first discuss why security is the most important feature of any rent collection platform. When it comes to collecting rent payments, you hold sensitive information, including bank account information, routing numbers and much more. If something goes wrong with this data, it can mean the loss of money, identity theft and an entire lack of trust from your tenants. There are a few fundamental components of security: the best apps for landlords to collect rent offers that are related to it. The first one is data encryption. You want to take a look at a platform that can use bank-level encryption (often 256-bit SSL) for both in-transit and out of transit. The second pillar is compliance. Just as important as good services are PCI DSS (Payment Card Industry Data Security Standard), well-meaning services can be. According to PCI DSS, there are a set of security standards for companies that accept, process, store or transmit credit card information. When you use a PCI-compliant service, you no longer have a role to play in security either; the company is legally responsible and takes on the responsibility of securing payment data from you, as the individual landlord, to a specialized platform that performs what it promises to do. Another part of your account backed up with features like two-factor authentication (2FA) adds an extra layer of protection so that even if a password is compromised, an unauthorized user doesn’t gain access to your account.
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A Deep Dive into the Top Contenders
There’s a massive variety of property management software out there and each has its advantages and disadvantages, but here are the top platforms that consistently make the list of the best rental payment apps for landlords. The next big thing in the world of proptech is Baselane. They have developed the platform specifically for the individual landlord and real estate investor and believe in providing a fully integrated financial ecosystem. Apart from collecting rent, it gives you access to a dedicated banking account (with cashback on all debit card transactions) and powerful accounts to keep track of income and expenses. Rent collection itself is pretty easy with no cost to the landlord. It’s got a clean interface and focused on the landlords.
Apartments
Besides its massive listing platform Apartments offers a robust and free set of management tools for landlords. They have an excellent and widely used rent collection service that people use, essentially free. Landlords can get ACH payments for free. But you can allow tenants to pay with credit card or debit card at a small fee. The best thing about it is that many of its tenants are already using it, so that gives them some good reasons to use the website instead of a second home. It also has great integration with its listing and tenant screening services so that you don’t have to worry about finding a tenant until they come back to collect their rent Avail is a comprehensive solution that excels in its user-friendly approach and educational resources, making it a favorite for first-time landlords. Its rent collection feature is powered by Stripe, a leader in online payment processing, ensuring top-tier security best apps for landlords to collect rent should provide. Landlords can receive payments via ACH for a small fee or pass the processing cost onto tenants for credit card payments. Avail also simplifies other tasks by offering free rental listings, thorough tenant screening, and a digital lease agreement builder, all within a single, intuitive dashboard.
Turbo Tenant
Turbo Tenant has a solid reputation because it offers a powerful and free version of rental management software for landlords. There’s a premium option for the rental income module, but this software includes all the great features, like automatic reminders and the ability to allow tenants to pay rent using an ACH, credit card or debit card. Landlords do save a lot of time when they automate the marketing and screening steps. If you can manage only a couple properties while also saving money, Turbo Tenant is probably a great option.
Making the Right Choice for Your Portfolio
There are quite a few great options for what you’re looking for. Also, be very sure that your needs are aligned with your portfolio size. If your portfolio size is only one, two, or three properties, then you might want to focus on a system that is easy to use and low cost. Turbo Tenant is an excellent choice for single-family houses as the name suggests and the interface is very simple and user-friendly. If your portfolio is much larger, and you do want to keep all aspects of your banking and investments under one roof, Baselane or Stessa may be a better fit. Also, be clear on what you’re charging. While many of these apps come with free ACH transfers for your landlords, they are often made on the tenant’s behalf using convenience fees, such as fees for credit card payments, or in their premium subscription tiers. Be sure to make sure that the model works for you and how it’s communicated to the tenants.
Implementing a New Rent Collection System
For any transition to a new payment method, your tenants should be given ample notice. The most ideal timeframe to notify them is 30-60 days in advance of the next payment due date (if you can schedule a time that is not strictly in the middle of the month, avoid surprise). Use this time to let them know of the benefits: more convenience, automatic payments so they don’t pay late fees, and a bit more security. While it won’t be easy on your property, be sure to walk them through the set-up process. If they require assistance, be sure to let them know and be prepared.
Conclusion
Now, investing in a digital rent collection platform isn’t just a flashy way to collect rent; it’s an essential best practice in today’s landlording world. With this security, the provider enables you to protect yourself from fraud and liability, the automation saves you significant time and mental energy, as well as cutting down on paper waste, and the digital paper trail offers unparalleled organisation in your business. If you’re doing your research carefully and selecting the platform like for its suite of all-in-one finance tools, Avail for its user-friendly interface, or any of our other top contenders then you’re investing in a more efficient and secure business.
Michael Matherne has been instrumental in the development of Villa Estates Luxe, leveraging his extensive background in real estate and digital marketing to shape the platform's success. His strategic insights have been crucial in curating the latest news and market trends, ensuring that users receive timely and relevant information tailored to their needs. Michael has also been pivotal in enhancing the overall user experience, implementing innovative features that make navigating the site seamless. His commitment to providing high-quality content and fostering a community of informed buyers and investors has significantly contributed to Villa Estates Luxe’s reputation as a trusted resource in the luxury villa market.