Why RentPay is the Best Way For Securely Collecting Rent Online
It's no secret that the financial services tech sector is booming. There are so many online services that allow you to make business transactions — like rent payments and collecting rent. RentPay is a web-based service that allows tenants to easily pay their landlords online. It's a universal service, meaning any landlord or renter can use it regardless of location or apartment community franchise association.
But, what makes a service crafted specifically for rent payments and collecting rent any different than all the other payment services out there?
Collecting rent through other apps might not be allowed
Landlords probably hear this question a million times: "Can I just send you my rent through Venmo/Cash app/PayPal?" Regardless of what your answer has historically been, from a legal standpoint, the answer is largely "No."
One example: Venmo, which is owned by PayPal, prohibits business transactions on standard users' accounts altogether. Their terms of service, as of October 2019, state, "...personal accounts may not be used to conduct business, commercial or merchant transactions with other personal accounts...."
Similarly, the Cash app prohibits standard user accounts from receiving payments for business-related purposes. Instead, Cash app offers a "Cash for business" account with per-transaction fees.
PayPal is a service built for business transactions, so you might naturally assume it's appropriate for accepting rent payments and collecting rent. PayPal does permit transactions for business purposes, however, if you're the proprietor of a business, PayPal will burden you with paying additional fees. This can mean you won't actually receive the entire payment sent by your tenant in your bank account.
Even if it's allowed, you might run into problems that are unique to landlords
Even if the previously mentioned services, as well as similar services, do allow you to receive payments for collecting rent, you may still encounter problems that are specific to renting.
For example, many of these services have periodic transfer limits meaning you're limited in the amount you can cash out on a daily, weekly or monthly basis. If you have one rental unit, this probably won't be an issue. But, if you're a landlord with multiple units for rent, you may have significant trouble accessing the money your tenants send you.
Another issue that you probably haven't considered is the interest collected on money sent to you. When you hold the money in your own account, you can collect the interest yourself. However, if a third party financial app or online service is holding your money, they receive the interest on that money.
How RentPay is a better alternative
Though many of the previously mentioned services each have some small benefit when used for renting, they're clearly not designed with the rental industry in mind. That's why RentPay is so popular — it's designed to make life easier for landlords and renters.
RentPay benefits for renters
RentPay has standardized information across users, meaning renters and landlords all have access to the same information. This eliminates a lot of "He said, she said" misunderstandings that can stem from verbal agreements. Plus, it makes it very simple to show proof of address and past rent payments, if required.
The reason renters love to use online payment systems is because of the range of options available. RentPay checks that box, as well. Tenants using RentPay can pay using their credit or debit card or through a direct wire from their bank account.
Renters using RentPay can even pay online and have a check sent to their landlord. With this, renters can set up Autopay using their preferred payment method to make sure they are never late with rent again.
RentPay benefits for landlords
One of the biggest downsides to using online payment services not designed specifically for renters is the burden it puts on landlords. RentPay mitigates those problems and actually makes collecting rent for landlords much easier.
The most important answer to the question on the minds of all landlords: "Is it really free for landlords?" The answer is a simple yes. RentPay is free for landlords to use.
On top of that, there are no transfer limits for landlords using RentPay, meaning you can always get to your money, no matter the amount you receive. You don't even need to create an LLC or register as a business entity.
When you get paid through RentPay, you never even have to visit the bank to access the money. With just a click, funds can be directed towards the landlord's bank account.
RentPay is the easiest way to handle rent payments
You could handle rent payments and collecting rent the old-fashioned way with cash or checks alongside regular trips to the bank. Or, you could make paying rent easier on everyone involved.
RentPay is easy to integrate in businesses of any size and is totally free for landlords, so there's no reason not to try it.