The Best Way to Collect Rent as a Landlord (Hint: Not Zelle)

For some landlords, rent collection is like a mosaic. One tenant Venmos you, another leaves a check in their mailbox, and a few send texts saying, “Zelle isn’t letting me send that much. I’ll try again tomorrow.” With so many moving pieces, you have to track payments, move funds around, and wonder if the transfer you’re waiting on is actually going to come through. Instead of playing a constant game of catch-up, it’s time to switch over to the best way to collect rent as a landlord.

But what exactly is the easiest and most organized way to receive your tenant’s monthly rent payments?

Spoiler: It’s not juggling apps or disputing Zelle’s transfer limits with its customer service representatives. The right rent collection method promotes consistency, visibility, and protection — so the day rent’s due goes by without a hitch.

In this article, we’ll discuss the best way to collect rent as a landlord, rent collection laws, ways to promote on-time payments, and how to use property management software to simplify the process for everyone involved.

Best Ways to Collect Rent from Tenants

The best way for a landlord to collect rent is through a secure, tech-enabled process, such as digital platforms that let tenants pay by ACH, debit, or credit card. When tenants pay how they’re comfortable, you both save time.

You don’t have to meet for an in-person hand-off, go to the ATM, or worry about misplacing a check. And since mobile processes are convenient, tenants are more likely to pay on time and in full.

That said, there are many options you can use to move money from the tenant’s account to yours. Here are the top methods for landlords to collect rent:

1. TurboTenant

Trusted by over 900,000 landlords, TurboTenant allows landlords to collect rent for free. As a leading rent collection software platform for landlords big and small, TurboTenant gives you access to professional tools, such as:

• Autopay
• ACH and credit/debit card payment processing
• Automated late fees and late payment penalties
• Automatic rent reminders
• Financial tracking and property accounting
• Automated rent receipts

The platform uses Stripe and Plaid to encrypt sensitive payment data, protecting both landlords and tenants. It’s the best way to collect rent as a landlord, hands down.

What We Like About TurboTenant

• Rent collection is free for landlords
• No daily transaction limits
• Automated rent reminders
• Automated late fees
• Tenants can enable autopay
• Syncs with integrated accounting software
• Dashboard organizes essential rent details
• Generates automatic rent receipts
• As an all-in-one platform, you can manage your entire property from one interface

Factors to Consider

• At the time of writing, paid plans start at $12.42/month
• Accounting software requires an upgrade to Pro (less than $200/year for full access)
• Transactions take a few days to process

2. TenantCloud

Another all-in-one rent collection option is TenantCloud, which specializes in accounting and automation. Landlords using TenantCloud gain access to the following features:

• Autopay
• Rent reporting
• Automatic late fees
• Integrated accounting

One of the major benefits of TenantCloud is its next-day or same-day deposits so that you can access your money quickly. However, at the time of writing, no free plan is currently available. Paid plans begin at $198/year.

What We Like About TenantCloud

• Next-day or same-day access to funds
• Automated late fees
• Tenants can enable autopay
• ACH fees, paid by the tenant, decrease with each tier level

Factors to Consider

• No free plans are available, so landlords must choose a paid plan.
• May require time and training to learn the software

3. RentRedi

RentRedi is another all-in-one property management software trusted by landlords worldwide. Thanks to its handy rent collection feature, RentRedi landlords can manage rent payments, assess late fees, and send rent reminders from a single dashboard.

Landlords can easily export rent receipts to RentRedi’s accounting software, spreadsheets, or to external software such as QuickBooks.

At the time of writing, RentRedi offers a subscription-based flat pricing starting at $5/month. ACH fees cost $1 per transaction (paid by either the landlord or the tenant), and any rent paid by credit card is subject to a 3.1% + $.30 processing fee (paid by the tenant).

What We Like About RentRedi

• Free to set up
• Utilizes REI Hub accounting software to sync rent payments
• Intuitive dashboard organizes tenants.
• Users can link unlimited payment accounts.
• Landlords receive money in as little as 2 days.
• Landlords can block certain payment types.

Factors to Consider

• ACH transactions aren’t free like TurboTenant’s paid tiers
• If looking for more of an all-in-one platform, you’ll need to pay for applications, maintenance requests, and showing scheduling, among others

4. Zelle

Some landlords prefer to use payment apps, such as Zelle, PayPal, Venmo, or Apple Pay. But in terms of rent collection, Zelle is the best option. It’s free, secure, fast, and easy to use — making it a reasonable option for landlords with small portfolios.

However, it’s not as good as landlord software (like TurboTenant, TenantCloud, or RentRedi) because Zelle isn’t designed for rent collection. And landlords don’t get access to the additional property management features, such as lease generation, customized dashboards, and tenant screening.

Another downfall is that certain banks don’t support Zelle. And transaction limits often lead to late or partial payments.

What We Like About Zelle

• Free to use
• Money transfers are instant
• Many tenants use it in their daily lives
• Payments go straight from bank to bank
• Tenants can set up recurring payments

Factors to Consider

• Not all banks support Zelle
• Daily, weekly, and monthly transaction limits can complicate payment
• If neither party has a Zelle account, tenants can’t automate payments
• You can only add one bank account per email address or phone number
• Zelle may flag transfers as fraudulent, delaying payment while they investigate the case

5. PayPal

PayPal, which revolutionized online payments back in the late 90s, offers a similar service to Zelle. However, there are a few significant differences.

For starters, PayPal doesn’t offer direct bank-to-bank transfers like Zelle. Instead, payments are held within the PayPal system until users decide where to route the money. And if landlords want to transfer the rent to their bank account instantly, they have to pay a fee.

However, PayPal’s transaction limits are much higher than Zelle’s. In most cases, it’s between $60,000 and $100,000, so covering rent probably won’t be an issue.

What We Like About PayPal 

• PayPal is a time-tested, secure digital payment method
• Much larger send-and-receive limits than Zelle
• Users can attach multiple banks to their PayPal account

Factors to Consider

• Instant transfers to bank accounts cost extra
• Payments are held within PayPal, allowing users to reroute them
• Both users need a PayPal account to send and receive money
• No integration with accounting software
• Withdrawals are often slow-moving

6. Venmo

Venmo is similar to PayPal and Zelle, but with a few limiting factors. Most notably, users can only send and receive money through the Venmo app on their smartphones. In other words, you can’t access Venmo from a desktop.

However, withdrawals from Venmo tend to process a bit faster than those from PayPal. Venmo’s mobile app is also more user-friendly than PayPal’s. But Venmo displays payments on a public, social-media style stream by default, which isn’t the norm for rent payments. Another point to note is that tenants can’t cancel payments once they’ve been initiated.

What We Like About Venmo

• Free and user-friendly
• No fees for bank account/debit card transactions
• Withdrawals usually process fairly quickly.
• High send and receive limits (after Venmo verifies your account)

Factors to Consider

• Payment details are public
• Users can’t cancel payments once they’ve been sent
• Venmo is only available on smartphones, not computers
• No recurring payments

7. Apple Pay

Apple Pay is reliable and secure, but it’s not our favorite way to pay rent. Both users must own Apple devices to initiate payment. Another drawback is its low send-and-receive limits, which don’t work for landlords with multiple properties.

Overall, Apple Pay specializes in consumer-to-business transactions, not rent collection.

What We Like About Apple Pay

• Apple Pay is very secure
• Users can use multiple credit/debit cards and bank accounts as payment options
• Users can send money directly through iMessage
• Tenants can’t send landlords money via credit card (debit cards and bank accounts only)

Factors to Consider

• Both users must have Apple devices
• Lower send-and-receive limits than PayPal and Venmo
• Instant transfers incur a 1.5% fee

8. Direct Bank Transfers

Instead of using property management software or third-party apps, landlords can use direct bank transfers.

Tenants pay landlords directly from their bank accounts, or landlords can request payment from tenants. While the process is straightforward, both parties must share sensitive account details.

What We Like About Direct Bank Transfers

• Generally reliable and fully insured
• Fewer instances of scams and fraud than with third-party apps
• Accounting software like QuickBooks can link directly with banks
• Banks often allow tenants to set up recurring payments

Factors to Consider

• Landlords and tenants must share their bank information
• Some banks charge fees
• Typically, bank transfers are slower than payment apps like Zelle
• Send-and-receive limits vary by institution

9. Checks and Cash

The most traditional way to pay rent is using cash or a check. It’s a time-tested approach, but it’s not the most convenient. Both parties need to visit an ATM and then coordinate an in-person meeting. Otherwise, tenants must mail the funds, which is risky. And carrying around large sums of cash isn’t always the safest idea.

What We Like About Checks and Cash

• Cash and check transactions have stood the test of time
• Cash can be spent or deposited instantly
• Checks can be deposited using your phone

Factors to Consider

• Cash doesn’t leave a paper trail
• Human error can lead to issues
• Payments sent in the mail can get lost or stolen
• Checks can bounce
• Cash and check transactions can’t automatically integrate with rental accounting software

Know the Law: Legal Considerations for Rent Collection

Now that we’ve covered the best way to collect rent as a landlord, it’s important to note the laws that govern rental income. Each state sets its own guidelines, but most areas have laws dictating the following:

• Rent receipts for payment documentation
• The payment methods tenants use
• Grace periods before you can apply late penalties
• Late fees for unpaid rent

Here are a few examples of how different states handle rent laws:

California Laws Governing Rent Payments 

Rent receipts: State law requires landlords to provide a signed rent receipt, whether electronic or paper, upon request (Cal. Civ. Code § 1499).

Payment methods: Landlords must accept one form of payment that’s neither cash nor electronic funds. However, you can require your tenants to pay in cash for a 3-month period if they’ve used a check drawn from insufficient funds or stopped payment on a check, money order, or draft (Cal. Civ. Code § 1947.3).

Grace periods: State law doesn’t require them.

Late fees: Landlords can charge reasonable late fees, but they must outline them in the lease agreement.

Colorado Laws Governing Rent Payments 

Rent receipts: If a tenant pays rent in person with cash or a money order, landlords must give them a receipt detailing the amount paid and the date. When tenants pay in person with cash or a money order, state law requires landlords to provide a receipt within 7 days upon request (Colo. Rev. Stat. § 38-12-802).

Payment methods: Landlords can define their preferred payment methods in their lease.

Grace periods: Colorado law doesn’t require a grace period for rent.

Late fees: State law caps late fees at $50 or 5% of the past-due rent, whichever is greater (Colo. Rev. Stat. § 38-12-105).

Florida Laws Governing Rent Payments 

Rent receipts: Florida’s Residential Landlord and Tenant Act doesn’t require landlords to provide rent receipts.

Payment methods: No laws in the Sunshine State govern payment methods.

Grace periods: Florida law doesn’t mandate grace periods.

Late fees: Landlords can charge reasonable late fees if they clearly outline them in the lease.

New York Laws Governing Rent Payments 

Rent receipts: State law requires landlords to provide receipts when tenants pay by any method other than a personal check (N.Y. Real Prop. Law § 235-e).

Payment methods: Landlords can specify their preferred payment method in the lease. However, New York law prohibits you from only accepting electronic billing methods (N.Y. Real Prop. Law § 235-e).

Grace periods: You must give tenants a 5-day grace period before applying late payment penalties (N.Y. Real Prop. Law § 238-A(2)).

Late fees: New York caps late fees at the lesser of $50 or 5% of the monthly rent (N.Y. Real Prop. Law § 238-A(2)).

Texas Laws Governing Rent Payments 

Rent receipts: Landlords must give rent receipts when tenants pay in cash. If a tenant pays using money orders or cashier’s checks, state law requires you to provide receipts if tenants request one (Tex. Prop. Code § 92.011).

Payment methods: No laws in Texas govern payment methods.

Grace periods: State law doesn’t define a grace period for rent.

Late fees: Texas landlords may charge reasonable late fees if they are included in the lease (Tex. Prop. Code § 92.019).

Washington Laws Governing Rent Payments 

Rent receipts: When tenants pay in cash, Washington law requires you to give tenants a receipt (Wash. Rev. Code § 59.18.063). If tenants pay by any other method, you must provide a receipt upon request (Wash. Rev. Code § 59.18.063).

Payment methods: State law doesn’t cover payment methods. Landlords can define their payment process in the lease.

Grace periods: Landlords must extend a 5-day grace period (Wash. Rev. Code § 59.18.170).

Late fees: Washington law permits late fees if landlords outline them in the lease.

As you can see, rental laws vary by state. Check your state’s guidelines to keep your process compliant and risk-free.

3 Rent Collection Best Practices 

Whether you’re using traditional methods to collect rent from tenants, such as in-person transactions or collecting envelopes in the mail, or tech-enabled electronic payment methods, keep these tips in mind:

1. Encourage Recurring Monthly Payments

Tell your tenants about the benefits of automated payments. They’re efficient, guarantee on-time payment, and streamline the process completely.

Property management software is a great way to simplify payments and avoid rent-collection headaches altogether — making it the best way to collect rent as a landlord.

2. Set Up Automatic Rent Reminders and Late Fees

Consider protecting your investment by sending tenants an automated rent reminder a few days before their rent is due. We also recommend automated late fees and late payment penalties to keep the process hands-free and easy.

3. Use Property Management Software to Save Time and Stay Organized

Is April 15th always a stressful day? Accounting software can help you organize your rental finances and simplify tax season. All-in-one platforms help you store documents, prepare 1099 forms, and perform the admin tasks that keep your business running and compliant.

Streamline Rent Collection with TurboTenant 

Say goodbye to rent collection issues for good — TurboTenant is the best way to collect rent as a landlord.

In addition to its automated rent collection, TurboTenant streamlines tenant screening, listing marketing, rental applications, lease generation, property maintenance, and more.

Sign up for a free TurboTenant account today to make your rental workflow secure, simple, and stress-free.

Best Way to Collect Rent as a Landlord FAQs