What Tools Are Available for Landlords to Automate Rent Collection?

Regardless of the number of rental units you manage, collecting rent using traditional methods is always a headache. Cash payments can get lost or stolen, checks might require a trip to the bank, and in-person rent collection means finding time to meet in person. To avoid these hassles, collect rent online.

To that end, TurboTenant has fully automated the rent collection process. Our tools help landlords save valuable time and reduce the frequency of late rent payments, all while improving the bookkeeping process.

Whether you already handle property management yourself or you’re considering a DIY approach, switching to an online rent collection platform couldn’t be easier. Here, we’ll explore reasons why to automate and some of the best solutions to do so.

Why Automate Rent Collection?

Simply put, automated rent collection tools are the best way to collect rent. These software programs can send automatic payment reminders, apply late fees, and enable auto-pay. These capabilities help you put rent collection on autopilot.

Additionally, automatic rent collection tools improve bookkeeping by giving you a digital record of previous payment data. During tax season, this automated record-keeping is especially helpful because it means no more digging around for paper receipts or scrolling through Venmo transactions.

With all the time saved by using automated rent collection, landlords can focus on higher-value tasks, like tenant communication and property maintenance.

The Best Rent Collection Tools for Landlords

Landlords have a few different options for automated rent collection tools. Here, we’ll explore some of the pros and cons of the most popular programs on the market so you can make an educated decision.

1. TurboTenant

TurboTenant’s rent collection software provides numerous advantages for landlords, particularly those who prefer to manage their rental properties independently.

To start, TurboTenant will send automated payment reminders to renters every month, and tenants can also set up autopay. Should a rent payment become overdue, TurboTenant will automatically charge a late fee. And thanks to TurboTenant’s Rent Reporting feature, which sends on-time payments information to TransUnion about on-time rent payments, your tenants will be motivated to stay on top of rent to build good credit.

Perhaps best of all, TurboTenant’s rent collection tools are entirely free for landlords to use, although tenants must pay small fees for certain services.

2. Avail

Avail also sends rent payment reminders to tenants, allows tenants to set up monthly payments on autopay, and provides a suite of rent reporting and bookkeeping options. Outside of rent collection, Avail offers an array of educational resources for renters, which could be a big help to both landlords and tenants alike.

Additionally, landlords can collect rent for free with Avail, although a paid membership is required to receive faster rent deposits, which is also the case with TurboTenant. It’s also worth noting that Avail is best suited for landlords with smaller portfolios, so property owners who manage more than 50 units may want to consider a different platform.

3. RentRedi

RentRedi’s rent collection tools come with perks like auto-charging and payment tracking, streamlining all aspects of the rent payment process. Tenants can pay rent using a bank account, credit or debit card, or cash. In the latter case, payments are sent to landlords via the financial technology company Chime.

Since RentRedi also offers a dedicated mobile platform, their software is ideal for landlords who manage rentals while on the go. However, landlords will need to pay to use these tools since RentRedi doesn’t offer a free plan.

4. Hemlane

Hemlane offers a range of automated rent collection tools that are seamlessly integrated with the rest of the program’s leasing workflow. That way, landlords can handle rent collection and all other aspects of property management in one place.

Hemlane also employs a dedicated customer service team that can provide quick answers for your tenants if any issues arise during the rent payment process. Of course, this will free up valuable time for landlords who prefer a more hands-off approach.

With all that said, there is one catch: Hemlane’s rent collection is a premium feature only available to landlords with a paid membership.

5. TenantCloud

On TenantCloud, renters receive automatic payment reminders and can make monthly payments via ACH (Automated Clearing House) deposit. The software allows for easy setup on both the landlord’s and tenant’s ends and comes with standard features like automatic rent payment reminders and late fees.

TenantCloud can also generate tax reports like Schedule Es and 1099s, making tax season a breeze. Although helpful, TenantCloud doesn’t offer a free tier.

6. PayRent

PayRent is built specifically for sending and receiving automated rent payments. This software’s features include auto-pay options, easily enforceable payment policies, and credit reporting for on-time rent payments. PayRent also guarantees a high level of security for financial transfers.

As such, PayRent is a good choice for landlords who are focused on receiving reliable rent payments from tenants. The platform even offers a few extra capabilities that you might not expect, like lease management and tenant screening. However, since PayRent focuses primarily on rent payments, it lacks some of the other features you might need.

7. Zelle / Venmo / PayPal (P2P tools)

Although person-to-person (P2P) platforms like Zelle, Venmo, and PayPal aren’t landlord-specific, both landlords and tenants widely use them. Because of their ubiquity, they make it easy for landlords to collect rent because tenants likely already have an account.

The tradeoff, though, is a lack of other important features like auto-reminders, bookkeeping, payment tracking, and automatic late fee charges. Additionally, some P2P payment options may not provide essential security measures.

8. Buildium

This full-service property management program provides a robust suite of tools for landlords. Designed with both landlords and tenants in mind, Buildium’s rent payment software is easy to use. It includes features like rent reminders, automatic deposits, and the ability to set up monthly recurring payments.

Overall, Buildium’s many different options allow landlords to maintain professional-quality control over the rental management process. However, Buildium does charge to collect rent, with memberships starting at $58 per month to manage 150 units. As a result, landlords with more units will likely get better value out of Buildium.

How to Choose the Right Rent Collection Tool

As you decide on the best rent payment option for you, keep in mind the size of your rental portfolio, your budget for a rent collection tool, and your level of comfort with learning new technology, as some of these programs require a little extra digital know-how.

In addition to these factors, you should prioritize rent collection software that offers auto-pay, automatic late fees, rent reminders, and payment tracking. Then you’ll want to consider whether the platform you have in mind provides landlord-friendly options like payment receipts and monitoring to enable efficient record-keeping.

Of course, all of those extra features could impact how much you pay for a specific rent collection program, so be realistic about what you truly need and what you may want to purchase further down the road.

Top Rent Automation Tools Wrap Up

Landlords with rental portfolios of all sizes can benefit from automated rent collection tools. These programs can help streamline the rental management process and reduce the stress of rent collection for both landlords and tenants, leading to more frequent on-time rent payments.

Platforms like TurboTenant make it easy to streamline not just rent collection, but property management as a whole. Sign up for a free account today to start using your new rent collection tools.

Available Rent Automation Tools FAQ