Wow! Maybe times have hanged, but I recently read a thread here where a LL would accept rent payment using Cashapp, venmo, zelle, etc.... I never heard of Cashapp, no nothing about venmo other than basically what it is, and only used Zelle once for a non-landlord transaction between me and a friend. I've used Paypal many times for purchases over the internet, but that's it. I only accept cash or checks for rent payments from tenants.

Question: Is it becoming a standard practice of accepting rent payments using Cashapp, venmo, zelle, PayPal, etc.? If so, what are the pros and cons of each? Which do you prefer?

John

oops! Due to my crappy typing skills, "Wow! Maybe times have hanged" should be "Wow! Maybe times have Changed".

John

It is definitely more common. Here's the problem: the "free" use of those apps is designed for peer-to-peer transfers among family, friends, or maybe business associates for things like splitting the ticket at a restaurant or paying someone back when you loans them a few bucks to buy something.

They are NOT designed for business unless you agree to pay the fee they charge. For example, PayPal won't let you transfer money to or from a business checking account without the fee (3%). That's how they make their money, in addition to a meager amount they get based on the "float" between when you send money and the receiver actually gets it. Ever notice how if you want money RIGHT NOW you have to pay a small fee...or you can wait 1-3 business days? That's how they make money: floating your funds.

You Only take cash or checks. Wow! That's old-school.

I am NOT saying it's "bad". Different things work for different people, in different local cultures. If your mail delivery system is reliable, they always mail the check on time so you get it on time, and they never bounce - OK. But then do you have to go to the bank to deposit it?

I'm more concerned about you taking CASH - unless they take it directly to your bank - because that can be VERY DANGEROUS FOR YOU.

All of my kids (30 & under) and their peers do everything electronically - don't even have checks. It's the way of today & the future - even in country areas that may be slower to change.

I guess it depends on who your tenants are, but I've used clearnow for two years with my student tenants and has been good. I pay about $20/month.

For securities, I accept Venmo, but not paypal, for reasons SID mentioned, though no students mention paypal and all of them have Venmo.

I looked at zelle, but the amount limits are a problem, last time I checked.

Too many tenants and/or landlords have been jacked/killed in my city for me to even consider picking up cash. Mail service was completely erratic in my own home town for a long time for me to accept rent in the mail. When I started with rentals, I used to give out the account number for my tenants to deposit rent, but then one tenant who travelled a lot for work inquired about PopMoney. That worked well, but either that service, or that bank had a limit of deposit amount per day. Then Zelle came along, and I’ve had tenants use that.

One tenant became such a fan that she convinced her daycare to accept Zelle. A recent tenant is still giving me grief about how rent is collected ( among other things). But, either this tenant adapts, or they will be moving. I am not going to go pick up cash off the kitchen counter! And it’s not fair to my tenants to get late fees when mail gets delivered to wrong mailbox, and sits there for a week, which used to happen frequently. ( better now).

Thanks for the responses. I feel old now, which I am. There was some concern about me taking cash, but it is not a security risk for me since I only have an owner occupied 3 family in a decent area.

My tenants average stay is between 2 and 4 years. It seems like when a new tenants moves in they are getting younger and younger more social media and internet savvy. In the past one of my tenants asked about payment by Venmo, but I said no since I knew nothing about it so its cash every month. My other young tenant pays by check every month and has been with me for 2 years. I noticed that the check numbers are one after another meaning she is only using her check book to pay me and no one else. This leads me to believe she uses electronic payments for everything else.

I guess I need to take a minute or two and rethink how I should take rent payments in the future.

John

We all get it John.

The only people I write checks to from my personal account is my cleaners. I've noticed that all the checks I've written since I opened this book are to them.

I still write lots of business checks, but not personal.

For my tenants, I have mostly Clearnow do the debits, but my shorter term (travel nurses) I accept Zelle, personal checks and anything else we can agree on. One of my current travelers has a $1000 limit on his Zelle, so he sends me that amount then hands me cash for the rest. Most of the rest of mine currently write me checks.

Zelle, venmo, and having the rents deposit at the local credit union. I hate checks in the mail. Haven't "picked up" rent in probably 11 yrs.

Remember this, the easier it is for the renter to pay... less excuse they have for NOT paying. No more:

"mailman lost it."

"couldn't make it to the bank to deposit it...."

I set up a personal account just to receive rents - so no biz fees. I transfer the rents to the appropriate LLC biz accounts as soon as received.

I have about 45 sfh.

About 20 pay with zelle.. my fav.. you get money right away into your account

5 with venmo.. you have to transfer it to your bank... free but takes 2 to 3 days

2 with cash app.. just like venmo

All message when you get a payment