Banks are removing overdraft fees. This is great news for tenants using online rent payment.
More and more banks are removing overdraft fees. Consumers have long hated the $30-$50 they would be charged by banks for overdraft. At ClearNow, we applaud this move by banks. We believe that tenants are much more likely to use online rent payment with expensive overdraft fees removed from the picture.
With ClearNow, landlords pay our online rent payment fees. Using ClearNow is free for tenants. In fact, tenants can build credit history by using our service. However, some tenants in the past have been scared to use online rent payment because – if they mistime their paycheck just once – they could incur hefty overdraft fees. Now with banks removing these fees, tenants benefit from online rent payment without the fear of this fee. Landlords benefit, too, when tenants use online rent payment. The rent collection process is easy and efficient – A win win for everyone!
In early 2022, Bank of America and Wells Fargo started removing or reducing their overdraft fees. When the largest banks do this, smaller banks and credit unions followed. Consumers win. At ClearNow, we believe this change will further encourage the use of online rent payment by tenants.
The benefits of online rent payment can reach landlords and tenants.
One of the biggest challenges with rental property is paying and collecting rent. Collecting rent from tenants is time consuming. If you receive payment by check or cash, you have to then find time to deposit it. This process becomes more laborious the as the number of properties you manage grows. ClearNow’s online rent payment service has tools that can make the rent process more manageable. Here are some ways where ClearNow’s benefits of online rent payment reach both landlord and tenant.
Rent Payment on Autopilot
ClearNow makes it easier for tenants to pay rent online. Once set up, tenants just need to have sufficient funds in their bank account on their debit day. That’s it. They do not have to deal with checks, mail, or any interaction to pay rent with ClearNow. Similarly, landlords using ClearNow simply wait to receive rent payment directly into their bank account. ClearNow eliminates the time and expense related to picking up rent from tenants and depositing checks at the bank.
Build Credit History
The benefits of online rent payment extend to helping tenants build credit history. With ClearNow, tenants can build credit history by having their ClearNow rent payment data furnished to Experian RentBureau. The drive to build credit history encourages tenants to pay rent on time which in turn, benefit landlords. Landlords want to get paid on time.
The benefits of online rent payment with ClearNow are evident for landlords and tenants. While landlords get paid on time, tenants benefit in the process of building credit history while making the rent payment process easy.
Online rent payment is superior to mobile check deposit.
One of the conveniences of the smartphone revolution has been the introduction of “mobile check deposit“. With the help of an app, you can photograph a check for deposit while never leaving your home. For landlords and property managers, mobile check deposit for rent payment is an improvement over driving to the bank or ATM. It is convenient, but there are drawbacks making it not the best way for landlords to receive rent payment.
Downsides of Mobile Check Deposit
Mobile deposit still relies on a paper check. Mailed checks take time to receive. In some cases, they get lost.
Because mobile deposit is check-based, most banks put a hold on accessing funds until funds clear. In some cases, the first $200 may be available the next day, however, the delay can be much longer on larger amounts.
Mobile check deposit for rent payment can still bounce. If the tenant does not have enough funds by the time you deposit the check, you will likely be charged an insufficient funds fee.
Online Rent Payment is the Superior Solution
Online rent payment eliminates paper. Rent payment is electronically withdrawn from the tenant’s bank account and then directly deposited to the landlord’s bank account. The beauty of online rent payment is that checks cannot get lost or delayed. Even if the landlord is on vacation, the deposit will still happen.
One of the oldest and most trusted online rent payment services is ClearNow. With ClearNow, landlords save time and collect rent faster. Rent is directly deposited three business days after the debit day. A landlord can enroll with ClearNow at www.ClearNow.com.
Take a look at Redfin’s article on tips to avoid landlord fraud.
Making a large purchase can be a daunting experience. Naturally, you want to make sure the purchase is correct and legitimate. One of the largest expenses we face is for housing. So when it comes to renting a home, it is important to make sure you are renting to a legitimate landlord to avoid landlord frauds and scams.
With today’s technology, finding a place to rent is easy. For example, there are sites that can show you rentals available based on location and rent. You can peruse listings online at your leisure. In some cases with just a few clicks, you can schedule an appointment to view or even commit to a rental. While technology has made finding a rental easier, it has also, unfortunately, created opportunities for fraud. It is in these cases where spending the extra time and taking your time to research properties and landlords can be beneficial to you, especially in the long term.
Among the options for online rent payment, ClearNow and Venmo are two.
Landlords have choice on how they want to collect rent. Cash and checks are still methods used today. More efficient methods like online rent payment can range from focused rent payment services to basic money transfer apps to full service property management software. There are pros and cons for each method, so landlords should consider things like fees and ease of use before committing. In this post, we will compare ClearNow to Venmo for online rent payment.
ClearNow for Online Rent Payment
ClearNow is a focused online rent payment service where payments are initiated by the landlord. Serving landlords and tenants since 2000, ClearNow directly deposits rent three banking days after the tenant’s debit day. For a monthly debit, ClearNow starts at $14.95/month. This fee includes the debit of one tenant. Additional tenants are $2/month.
Unique among all online rent payment services, ClearNow has an owner proceeds feature where property management companies can directly deposit tenant funds to the property owner’s bank account for just an additional $2/tenant.
In addition to online rent payment, ClearNow provides landlords with various reports including a Schedule E Helper report for tax time. With ClearNow, landlords can record income and expenses, screen tenants, and esign leases. In 2011, ClearNow was the first online rent payment service to allow tenants to report payments to Experian. So tenants can build a credit history with their ClearNow rent payments. Unlike other services, ClearNow provides telephone and email support, so you can talk with a person if you wish.
Venmo for Rent Payment
Venmo is similar to Zelle in that it is a money transfer app. Tenants can use Venmo to transfer rent payment directly to the landlord’s bank account. To send and receive funds via Venmo, tenants and landlords have to have the Venmo app. Unlike Zelle, Venmo does not require both parties to have a bank account that is part of a specified network of banks. Generally speaking, money transfers occur within minutes, even though it can take a few days for funds to clear. Venmo charges businesses who receive funds a transaction fee of 1.9% + $0.10 of the payment. This fee is a consideration for landlords who operate as a business entity.
One of the biggest considerations for landlords accepting Venmo for rent payment is the issue of partial payments. Because tenants initiate the Venmo payment, tenants may not pay rent in full thus making it difficult to recoup the full amount due or even evict if necessary. Some states prevent eviction if partial payments are made.
Summary of ClearNow vs Venmo for Online Rent Payment
Service
Pros and Cons
ClearNow
+ Focused online rent payment service + In business since 2000 with an “A+” BBB rating + $14.95/mo for one tenant. $2/mo each additional tenant. Rent payments received in 3 business days. + Reports for landlords such as Schedule E helper and P&L + Email and phone customer support + Tenants can build credit history for paying rent +Automatic income & expense tracking for landlords + Enroll at www.ClearNow.com
Venmo
+ General money transfer service + Landlord and tenant need to have the Venmo app + Tenants initiate payment and can make partial payments + Pricing is generally free. There is a transaction fee for businesses to receive funds. + No reports specifically for landlording activity + Set up account at Venmo.com or download the Venmo app
In the 2000s, the big 3 US credit bureaus started to add rent payment information to an individual’s credit history. Initially, they offered this only to some people who rented from the largest apartment companies.
How to Build Credit History with Online Rent Payment
There are a number of services that help tenants get their rent payment information added to their credit history. Unfortunately, some of them appear to be a little expensive. RentReporters charges a $94.95 sign-up fee and then $9.95/mo. Rental Kharma similarly charges a $50 setup fee and then $8.95/mo per renter.
If you can get your landlord to use ClearNow’s online rent payment service, there is no fee for you as a tenant to have your payments furnished to Experian. Landlords using ClearNow pay $14.95/mo for the first tenant and just $2/mo for each additional tenant.
Make rent payment and collection easy when it’s on autopilot with ClearNow.
One of the most important obligations tenants have is paying rent. And one of the most important tasks landlords have is collecting rent. With any chore, completing it with the least amount of work and time is the goal. So putting rent on autopilot with online rent payment is the answer for landlords and tenants. The convenience of online rent payment is difficult to dispute. As long as tenants have funds in their bank account, rent will always be paid, and it will be paid on time. So the only thing tenants have to do is ensure they have sufficient funds in their bank account. Most online rent payment services, like ClearNow, automate the entire rent payment and collection process. This means once a tenant is enrolled and they have sufficient funds in their bank account, then rent payment is made.
For landlords, rent on autopilot with online rent payment means they simply need to wait to see the rent deposited to their bank account. Rent on autopilot eliminates waiting for checks in the mail and making trips to the bank. Online rent payment makes life easy, and services like ClearNow are the answer for many landlords and tenants.
The variety of accounting software make it challenging to integrate with all.
ClearNow is an online rent payment service that has been serving landlords and tenants since 2000. Its focus is on the transfer of rent from the tenant’s bank account to the landlord’s bank account. ClearNow makes the rent collection and payment process easy and efficient for both parties. On occasion, landlords will ask us, “Does ClearNow’s online rent payment service integrate with accounting software?”
ClearNow’s online rent payment service integrates only with RentalIncomeExpense.com. Created by ClearNow, RentalIncomeExpense.com is a free tool that enables landlords to track income and expenses for their rental property. ClearNow automatically records rents collected and service fees paid in the built in income and expense tracking tool.
Landlords have a lot of choice when it comes to accounting software. The variety of such software makes it difficult for ClearNow’s online rent payment service to integrate with all of them. For ClearNow landlords using a tool other than RentalIncomeExpense.com, they can download a CSV or PDF file that can be used to help populate their data in whatever tool they use.
Landlords who use ClearNow can easily add additional income and expenses from within their ClearNow accounts. The built in income expense tracking tool within the landlord’s ClearNow account makes it easy to run reports. Landlords who do not use ClearNow for online rent payment can still track income and expenses by setting up a free account at RentalIncomeExpense.com. Hopefully after reading this post, you now know the answer to “Does ClearNow’s Online Rent Payment Service Integrate with Accounting Software?”
Start the New Year better by using Online Rent Collection in your landlording!
January is a time of reflection and commitment. Traditionally, we set goals for the New Year. For landlords, why not improve the way you do business? Many landlords still wait for a rent check in the mail. Improve your landlording by making it your goal to use online rent collection for the New Year!
The Many Benefits of Online Rent Collection
The obvious benefit of online rent collection is less work for the landlord. There is no check to collect, no deposit activity that takes your time (even with mobile deposit you need to sign the back, take pictures, etc.).
But, from 20 years in the business, ClearNow can list some additional benefits:
Younger Renters love online rent payment. Many of them have expressed that they no longer receive checks when they open a bank account!
Your recordkeeping is better! Online rent payment services like ClearNow allow you to see any historical payment activity in a report by time or address.
You get your rent faster from renters who procrastinate or are travelling (or involved in an emergency). The name of the game of property management is collecting rent.
It is Easy to Get Started
ClearNow is a service that has helped landlords collect rent online for over twenty years! ClearNow makes it super-easy to sign up and then email all your tenants so that they can sign up. Learn more at www.ClearNow.com and get started on a positive change for the New Year!
As a landlord, there are things as stressful as a late rent check. Sometimes, the cause is tenants being forgetful. Other times, the delay can be with the postal system. Rather than just waiting, a successful landlord gets rid of late rent check payment altogether.
Tenants Are Forgetful
Tenants are human. And, unfortunately, humans are forgetful. Even the best intentioned tenant can forget what day it is. If you are depending on the tenant to write and mail a check, or even initiate a payment through Venmo, you are at the mercy of their memory.
Mail is Slow. And Getting Slower.
Unfortunately, the US postal service is getting slower. The headline screams: “Mail delivery slowdown: USPS to slow delivery“. First class mail will now take up to five days to arrive, rather than three days previously. As landlords know, late rent check payment is a big problem if they need those funds to pay a mortgage or other property expenses.
Eliminate Late Rent Check Payment
The best solution to late rent check payment is to not receive checks in the mail, or any type of payment that requires the tenant to remember to pay rent. Collect rent electronically and on auto-pilot. Fortunately, there are many services that are easy to setup. One of the the most experienced (in business since 2000) and most trusted (BBB A+ rating) service is ClearNow (sign up at www.ClearNow.com). With ClearNow, rent payments are automatically withdrawn through the bank system from a tenant’s bank account and are always deposited to you three business days later by direct deposit. The price of ClearNow is reasonable ($14.95/mo for the first tenant; just $2/mo for each additional tenant) compared to the price of missing rent payment.
