Collecting rent payments for apartments can be a hassle—checks bounce, tenants pay late, payments get lost in the mail. As paper checks become a thing of the past, renters are sometimes shocked to learn that they must pay rent with a physical check. In fact, many younger renters don’t even have checkbooks.
Luckily, there are several rent payment services that allow tenants to pay rent online—but this convenience comes at a cost. Many of these services charge either the landlord or tenant a flat fee or a percentage of the apartment rent in order to send the funds electronically.
However, there are also many free rent payment apps available, so there’s no reason to use services that charge fees up to 3% of the monthly rent payment.
Tools to Pay Rent Online
How it works: PayPal allows users to send payments from their PayPal account balance, a bank account, a debit card, or a credit card. Both parties must be registered users to send and receive funds. The funds are transferred to the recipient's PayPal account and can then be transferred to a bank account or used to make a future transfer.
Fee: Sending money from a bank account is free. If sending money using a debit or credit card, users are charged 2.9% of the amount being sent plus a fixed fee. Fees vary by currency, but for U.S. Dollars it's $0.30. The sender is able to decide which party will pay the transaction fee.
Timeframe: 3-4 business days
Limit: $10,000 per transaction
How it works: Like PayPal, Google Pay allows users to send payments to anyone from their phone or online. Google Pay users can send payment to the recipient's email address or phone number, however, if the receiver doesn't already have a Google Pay account they'll need to set one up. Unclaimed payments get returned to the sender after 14 days. Money received lands in the user’s Google Pay account and can then be transferred to the bank of their choice.
Fee: Sending money from a bank account is free, however, the sender must pay a 2.9% fee if using a debit or credit card to send funds.
Timeframe: Almost instant to several business days
Limit: Limits vary depending on the users' location. Once the account is verified, the limit is $10,000 per single transaction for most U.S.-based users.
Direct bank transfers
How it works: Most banks can move funds from one person’s account to another account, whether both accounts are held at the same institution or two different banks. Because funds are processed through the Automated Clearing House network used by banks, this is also called an ACH transfer. Banks will also send paper checks to recipients who do not accept payments electronically.
Fee: Fees vary by banking institution, but most banks offer direct transfers for a nominal fee, often less than a dollar, or for free.
Timeframe: 1 to several business days
How it works: Payments can be sent electronically to anyone with an email address. To use Chase QuickPay, either the sender or receiver must bank at Chase. Both parties must register for Chase QuickPay accounts in order to send and receive payments. The funds are withdrawn from the sender's bank account and transferred directly to the recipient's bank account.
Timeframe: Same business day for a transfer between two parties who both bank at Chase, and 1-2 business days if one of the parties does not bank with Chase
Limit: $2000 per transaction and $8,000 in any seven-day period
How it works: Like its parent company, PayPal, money is received in the recipient’s Venmo account. It can then be “cashed out” and transferred to the user’s bank account or used to complete future transactions. Venmo’s app offers a great mobile experience with a social feed and is popular among millennials. Both parties must create Venmo accounts prior to sending and receiving payments.
Fee: The service is free if using Venmo balance, a linked bank account, or a major debit card, but the sender must pay 3% of the amount being sent if using a credit card or non-major debit card.
Timeframe: 1-2 business days
Limit: Users start out with a limit of $299.99 per week. Once the user’s identity has been confirmed, the weekly limit is raised to $2,999.99.
How it works: Users can only send payments through the Cash App (formerly known as Square Cash) using a debit card. Unlike other payments apps, funds are deposited directly into the bank account associated with the recipient's debit card. Both parties must register for accounts before sending and receiving funds.
Timeframe: Almost instant to 2 business days
Limit: Initially, there is a weekly limit of $250 per week. The limit is increased to $2,500 if the account is verified using your full name, date of birth, and part of your social security number.