- November 18, 2021
- Posted by: Curated Contributors
- Categories: Blog, Business Financing, Real Estate Agents, Rental Property Financing
Check out this great guest post from our friends at RentRedi and learn more about landlord payment services. Find landlord software at RentRedi and learn about landlord payment collection methods:
Which is better: a landlord payment service or an app like Venmo for online rent collection?
While both options provide any easy way for tenants to pay landlords, there are several other factors to consider in addition to “paying rent”. Of course, online rent collection is a crucial component to rental property management, it should not be the only factor considered when deciding if it’s better to use a landlord payment service or payment apps like Venmo for collecting rent online or managing rental properties.
What is a landlord payment service?
A landlord payment service is simply property management software (sometimes called rental software). It can be beneficial for landlords for collecting rent—but also, as we’ll see below—managing many other facets of the landlord process. Common pain points for landlords, such as collecting payments, inspections & maintenance, and tenant screening can all be streamlined and simplified with property management software (like RentRedi, for example) and offers much more customization and control over the renting process than payments apps like Venmo do.
Best for Payments?
With all the customization and control options, rental software offers much more depth than apps like Venmo or CashApp do for a landlord’s rental business.
Payment history tracking & exporting
Venmo is not designed to track business payments and expenses like a landlord payment service is. Venmo provides a public or private payment transaction in a feed, so it’s difficult to export these payments into accounting software. Plus, if you have some tenants paying with cash, some with checks, and some with Venmo, it’s difficult to keep track of all these different payments. However, a landlord payment service like RentRedi provides landlords with one platform to track payments, as well as a mobile app from which tenants can make payments.
This way, even if you have a non-techy tenant, you can still track your payments in one place and export them to an accounting system.
Create charges for over an entire lease
Venmo means every month you will have to request a charge for a tenant (or rely on them to remember and send you the money). However, rental software like RentRedi means you can set up all your charges at once, so the entire lease is covered. Plus, tenants can set up rent reminders and landlords can also send push notification reminders directly to a tenant’s mobile app.
This is also helpful if you increase the rent incrementally with each lease period. You can set up future charges with the increased rent as a way to stay organized!
In certain states, if a landlord is attempting to evict a tenant, any payment made towards rent can delay the process. So, it’s important to use a landlord payment service that lets landlords block payments from tenants in case of an eviction.
Best for Inspections & Maintenance?
A property management software for landlords is essential when it comes to inspections and maintenance.
Store Checklist for Rental Inspections
Inspections are an underrated, critical component of property management. Between yourself and the tenant, both parties should thoroughly inspect the rental property to be proactive of any issues and ensure it remains in tiptop shape.
Share Important Documents with Tenants
Storing and sharing the documentation for both landlords and tenants is critical to ensuring everyone is in the loop. A property management software for landlords provides an easy way to upload and store documents in one place and share them directly with tenants, so they also retain a copy of the landlord inspection checklist. RentRedi provides landlords with unlimited storage and the ability to directly share documents with tenants via their RentRedi app.
DIY or Outsource Maintenance Options
Maintenance is a pain in the toolbox (and checkbook) for many landlords. And while Venmo may make it easy to remit payments to maintenance personnel, it doesn’t provide options to remove many common maintenance hurdles. Property maintenance services can be conducted through RentRedi, for example, making it easier to manage coordination, outsourcing, and tracking repairs via property management software.
Best for Tenant Screening?
Tenant screening is non-negotiable part of the renting experience. In theory, one could do some sleuthing on a prospective tenant’s Venmo history— perhaps it serves as a record of rent payments made to a previous landlord and can help provide evidences for any claims made in a landlord recommendation letter on behalf of a tenant.
However, a tenant screening process is best left to property management software—which can provide importnant information regarding a tenant’s credit, criminal, and eviction history.
Different rental softwares will offer different screening services. For RentRedi, tenant screening is TransUnion-certified, provides a credit-sased resident score, and includes custom leasing recommendation.
Full Credit Report
TransUnion predicts rental eviction risk 15% better than traditional credit scores, helping landlords make a more confident rental decision.
Full Eviction Report
One of the largest evictions databases subject to the FCRA with 27 million eviction records, covering all 50 states plus Washington D.C.
Full Criminal Report
Over 370 million criminal records from state and national databases provide comprehensive information for landlords.
Landlord Payment Service vs. Venmo for Online Rent Collection
When it comes to determining the most effective methodology for collecting rent online and managing properties, it important to consider all the factors that effect the renting process. For example, when it comes to blocking payments or exporting payment history, rental software programs are easier ensure accounting and eviction processes go more smoothly.
For maintenance and inspections, a critical component of ensuring your rental property investment is protected, a landlord payment service that offers maintenance management features can help streamline this process. Additionally, tenant screening is a requisite portion of renting and property managment. While Venmo can serve many uses, it unfortunately can’t provide full background reports.
All these factors—payments, maintenance, and tenant screening—conclusively show that a rental software like RentRedi is essential and the best for online rent collection and property management.