It’s amazing that tenants would ask about what is the best way to pay rent. Yet, web stats show they do ask. Perhaps, it means they’re demanding to pay via that better route.
Landlords already know which is the best – pay rent online via an automatic payment arrangement with their main bank account and it’s processed into their accounting system. And they know, for certain, that a payment has been made.
For many renters, their bank account is the heart of their financial world. Yet not all renters manage finances and spending in the traditional fashion. Bank accounts may not be the main source of funds as Generation Z comes to dominate the rental sector.
Gen Z’s and Millennials view the convenience of moving money where they need to as a big tenant benefit (or an expectation). Some would like their payment reported to credit bureaus too. Technology is changing renters’ expectations.
Most renters like the convenience of more options (described below). Gen Z Renters in particular are well-versed in alternative digital payment systems (discussed in this post). Pay from anywhere, anytime functionality is good business.
As a renter, you might encourage your landlord to look into property management software with these capabilities.
You can get these benefits via your ManageCasa™ subscription and landlords can enjoy lower fees vs using these systems separately. Tenants should recognize that convenience comes at a price.
Using ManageCasa, you’ll enjoy an amazing system to encourage renters to pay on time, improve communications and let them pay any which way they like. To them, it looks like you’re doing all you can to make renting easy and comfortable — sort of customizing their rental experience just for them. This carries a lot of meaning and generates goodwill.
Our online rent payment system has many more specific benefits. It integrates a convenient network of payment service providers to help you be cash flow positive.
Each tenant has their own technology usage habits, resources and funding sources, so the real best way to pay your rent might be through a property management platform’s tenant account where you can enjoy a wider array.
Property Management Software: A property management platform such as ManageCasa™ lets tenants make payments while logged into their tenant accounts. ManageCasa uses the Stripe digital payments service which enables a wide range of electronic payments including ACH, credit cards, debit cards, bank transfers, Apple Pay and Google Wallet.
Online Payment Platforms: Encourage tenants to pay rent online through platforms such as PayPal, Venmo, Zelle, or specialized rent payment services like Cozy or RentTrack. These platforms offer convenience as tenants can pay from anywhere with an internet connection, and payments are typically processed quickly.
Direct Deposit: Direct deposit arrangement allows tenants to authorize automatic withdrawals from their bank accounts to directly into the landlord’s account. For landlords, it helps avoid the risk, time waste and friction of physical paper checks and cash and ensures timely payments from tenant’s primary funding source. Tenants who pay this way might be considered more reliable and earnest about paying their rent.
Mobile Payment Apps: For ease of use, the additional channels of mobile payment apps like Cash App, Google Pay, or Apple Pay provide tenants with the flexibility to pay rent using their smartphones. These apps are convenient and offer additional security features such as biometric authentication.
ACH Transfers: Allow tenants to make rent payments via ACH (Automated Clearing House) transfers. This method involves transferring funds electronically from the tenant’s bank account to the landlord’s account. It’s a secure and cost-effective option for both parties. You can use this via your ManageCasa™ rent payment service (Stripe payment system).
Credit Card Payments: Some tenants may prefer to pay rent using their credit cards for convenience or to earn rewards points. Landlords can offer this option through merchant services or third-party payment processors, though it’s important to consider any associated fees. You can use this via your ManageCasa rent payment service.
Cash Payment Systems: For tenants who prefer to pay with cash, consider implementing a cash payment system such as PayNearMe. These systems allow tenants to make cash payments at participating retail locations, providing a convenient alternative to traditional methods.
Pay Near Me: Paynearme Inc., enables cash rent payments to be integrated with property management software. Having 60,000 participating retail locations in the U.S., including participating 7-Eleven, CVS, Dollar General, Walmart and Walgreens stores, PayNearMe is a convenient and immediate channel for renters to use, including those late on paying rent.
Check Payments: While less common in today’s digital age, checks can be a reliable option for those who are not comfortable with online payments, though they require additional processing time and inconvenience, and NSF events.
Electronic Money Orders: Electronic money order services like MoneyGram or Western Union allow tenants to purchase and send money orders online, which can then be mailed or electronically transferred to the landlord. This option provides a secure and traceable method of payment.
That’s our list of the very best ways for tenants to pay their rent and for landlords to collect overdue rent quickly. If rent collection and late payments are becoming an issue this year, it might be time to consider how ManageCasa™ can help you develop a sound system for encouraging and enabling on-time rent payments.
Contact our customer service team right now at 415 800 1245 to learn more about how you can migrate to our modern platform.