The Best Online Rent Payment Services

Using online rent payment is one of the best things a landlord or property manager can do. As explained in a MySmartMove blog post, online rent payment can decrease late payments, save you and your tenants time, and prevent mail fraud.

Are all online rent payment services the same? The short answer is “no”.

Landords and tenants today have a ton of choice when it comes to collecting and paying rent online. The selection of online rent payment options is vast and can range from a very simple money transfer app to full service property management software. Some services are free while others have a sizeable monthly fee. Each option comes with varying bells and whistles. Considerations such as cost, simplicity, and support play a role in determining the best solution for landlords and their tenants.

We’ll take a look at the best options and point out how online rent payment services are not all the same. Let’s get started . . . .

Summary of the Best Online Rent Payment Services

ServicePros 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.
+ Email and phone customer support
+ Tenants can build credit history for paying rent
+ Enroll at www.ClearNow.com
Cozy+ Focused online rent payment service
+ Website transitioning to Apartments.com in mid-2021. At some later point, Cozy.co website will cease.
+ $2.99/mo for each tenant processed for 3 business day processing
+ Email only customer support
+ Tenant rent payments no longer reported to Experian credit bureau
+ Enroll at cozy.co
RentPayment+ Focused online rent payment service
+ Company sold in 2020. Now a subsidiary of MRI Software.
+ Pricing depends on volume. Need to speak to sales. Targets larger apartment complex with pricing tool.
+ Chat and ticket support
+ Enroll at www.rentpayment.com
PayPal+ General money transfer service
+ Both tenant and landlord have to have PayPal accounts.
+ Same day transfer times
+ Pricing is similar to credit card fees (about 3% of the amount transferred)
+ Enroll at paypal.com
Zelle+ General money transfer service
+ Same day transfer times
+ Tenant and landlord have to have bank accounts on the Zelle network.
+ Tenants can make partial payments.
+ Pricing is free for users with Zelle accounts. Zelle may limit total amounts that can be transferred.
+ Enroll through a bank that is part of the Zelle network.
Buildium+ Full service property management software – more features than just online rent payment
+ Pricing starts at $50/mo. There is an additional $99 one-time fee for online rent payment and a $1/payment fee.
+ Knowledge base support and telephone number for sales
+ Does not allow tenants to build credit history
+ Enroll at www.buildium.com
Rentec Direct+ Full service property management software – more features than just online rent payment
+ Pricing starts at $35/mo
+ Telephone customer support
+ Does not allow tenants to build credit history
+ Enroll at www.rentecdirect.com

A Detailed Look at the Best Online Rent Payment Services

ClearNow: ClearNow is a focused online rent payment service. Serving landlords and tenants since 2000, ClearNow will directly deposit funds 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.

Beyond 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 like Cozy or RentPayment.com, ClearNow provides telephone and email support, so you can talk with a person if you wish.

Cozy (soon Apartments.com): Online rent payments from checking accounts are free with Cozy, but landlords have to wait 5 business days to receive funds. Landlords can pay $2.99 per tenant per month to reduce the wait to 3 business days. Cozy offers other services like marketing rentals and maintenance requests. Unfortunately, Cozy has stopped rent reporting to Experian, so tenants using Cozy for online rent payments will not receive the benefit of building a credit history. And if you need any help, Cozy has a help center with articles (more like Q&A), or you can contact Cozy by email. Cozy does not offer any telephone assistance.

RentPayment: Similar to ClearNow and Cozy, RentPayment focuses primarily on streamlining rent collection. While they specifically address serving the largest property management companies, RentPayment is available to landlords, too. For 1 to 250 tenants, RentPayment charges $4.95/ACH transaction, 0.95% for debit cards, and 2.95% for credit cards. If you have more than 250 units, you’ll have to request a quote.

Like Cozy, RentPayment has been undergoing ownership changes. RentPayment.com was sold in 2020 and is now a subsidiary of MRI Software. RentPayment’s customer support page emphasizes chat and support tickets for customer service.

PayPal: PayPal is a widely used online payment service, most famous initially as a payment method for successful Ebay auctions.

PayPal has an option called PayPal Invoicing where recurring payments can be processed. PayPal does, however, charge for this service – close to 3% of the amount processed. On a $2,000/mo rent, a landlord may pay almost $60 to receive one rent via PayPal. PayPal transfers can occur quickly – though PayPal does sometimes hold onto funds a little longer before a business can move it out of their PayPal account and to their bank account.

Zelle: Technically considered a money transfer app, Zelle enables tenants to transfer rent payment directly to the landlord’s bank account. Zelle requires both landlord and tenant to have a bank account that is part of the Zelle network. Generally speaking, money transfers occur within minutes, and generally Zelle does not charge sender or receiver (some Zelle banks do charge small businesses).

While fast and free, some landlords may not prefer Zelle as a method of rent payment. Tenants initiate the payment and 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.

Additionally, depending on your bank, Zelle may limit transfers to $1,000/day or $5,000/mo.

Buildium: Considered full service property management software, Buildium provides landlords with a spectrum of tools to manage rentals, including record keeping, maintenance requests, and online rent payments.

Unlike Zelle, Buildium is not free. Buildium offers three packages with the lowest package starting at $50/month. All packages have an online rent payment feature. After an initial one-time $99 application fee for online payments, landlords are charged $1.00 per transaction to receive funds for the lowest priced package. Transactions to receive funds are waived for the more expensive packages which start at $160/month and $460/month, respectively.

Rentec Direct: Similar to Buildium, Rentec Direct is full service property management software that includes online rent payments. Starting at $35/month, Rentec Direct offers two products depending on if you are a property owner or a property management company. The monthly cost is based on the number of units managed. Both products include online rent payments for no additional cost.

In addition to online rent payments, Rentec Direct enables landlords to screen tenants, manage maintenance requests, and synchronize financial data with QuickBooks.

Conclusion

If you are a landlord with a few properties, Buildium and Rentec Direct may be overkill because of their higher fees. In addition to cost, Buildium and Rentec Direct do not furnish rent payment data to credit bureaus to help tenants build a credit history. Credit reporting is a bonus for tenants paying rent online.

Landlords who question the value of full service property management software may lean towards a service with a focus on online rent payment, like ClearNow, Cozy, or RentPayment.com.

There is a lot of choice for online rent payments, and each choice has its pros and cons for landlords and tenants. For someone new to online rent payments, some important things to consider beyond price and customer support options are (a) how long will it take to get my funds, (b) how long has this company been in business and what are their reviews, and (c) how do my tenants benefit from this service.

Cozy Ends Rent Reporting to Experian. ClearNow allows Rent Reporting to Experian.

Cozy recently announced that renters who use its online rent payment service will no longer be able to report their rent payments to Experian.

At ClearNow, we’re puzzled why any online rent payment service would end something so beneficial; so many tenants are looking to build credit history. We’ve long believed in the power of rent to build credit history. In 2011, ClearNow was the first online rent payment service to allow renters to report payments to Experian. Unlike Cozy, we have no plans to ever stop offering this valuable service.

For tenants who are interested in reporting their rent payments to a big 3 credit bureau, ask your landlord to sign up for online rent payment with ClearNow at www.ClearNow.com. Your rent payments should help you build your credit history.

Easy Owner Disbursements of Rent Payment

Every property manager needs to collect rent from tenants and then send those rent payments – less property management fees and other incidental charges – to the property owners. These fund transfers of collected rent to the property owners are known as “owner proceeds” or “owner disbursements”.

ClearNow has long made collecting online rent payments from tenants easy and automatic. Less well known is that ClearNow has a unique capability in the online rent payment industry: We can also directly deposit owner disbursements to property owners. Automating these fund transfers makes your life as a property manager so much easier and allows your customers, the property owners, to get their funds quickly.

We are happy to announce that we have adapted the same all online process (complete with esignatures and bank document uploads) that our landlords and property managers use to enroll tenants to now apply to property owners. Property owners enroll completely online. There is no need anymore for paper, printers, or delays.

With ClearNow, property managers just log into their ClearNow account, click ‘Add Owners’, provide property owner’s name and email address, and click ‘Send Email.’ The property owner will receive an email explaining how they can provide their information and esign to have rent payments directly deposited to their bank account. As the property manager, you don’t even see the property owner’s bank account information, which provides an extra measure of privacy and security for your property owner customer.

Finally, when the property owner completes their part, you will be able to set up a simple formula that allows you to keep a dollar amount or percentage of rent from a tenant’s online rent payment. The remainder of those funds is directly deposited to your property owner’s bank account three banking days after the tenant’s debit day.

To get started using ClearNow for this valuable feature and learn how affordable it is (hint: $2 a payment!), visit ClearNow.

eSignToday – Pay Only $0.50 for an Esignature

ClearNow has introduced a simple and affordable esignature tool, eSignToday (eSignToday.com).  Now you can get your leases or any document esigned for just $0.50 a signature.  There are no monthly subscriptions.

Over our many years of working with landlords, we have received feedback on what would make their lives easier.  Beyond online rent payments, easy lease signing was another popular request.  Because leases are specific to each landlord, we needed to make signing easy while preserving the uniqueness of each lease.  In addition, we wanted to apply what we have learned with ClearNow’s online rent payments where the best tools are (a) mobile friendly, (b) easy to use, and (c) a time saver.  Last but not least, the VERY BEST tools are affordable.

Esignatures are the solution for easy signing as anyone can sign while on the move . . . on a phone, tablet, or laptop.  Esignatures eliminate printers, paper, and delays.  The problem with most esignature tools is that they are not affordable as many of them (e.g. Docusign, Adobe Sign) require a monthly subscription.  So if you only need one or two signatures a month, paying $10/month or more is overkill.    

There is no monthly subscription with eSignToday.  Instead, you pay $0.50 for each signature you need.  That’s it.

eSignToday is available to anyone who needs a document signed, and it’s easy to use:

  1. Set up a free account at eSignToday.com
  2. Upload your document
  3. Email the document to each person who needs to sign it
  4. View a fully signed document where all signatures appear on the last page.

How to Screen Potential Tenants

Landlords using ClearNow to collect online rent payments now have access to a powerful and FREE tenant screening service.  We believe SmartMove is superior to most other tenant screening services for a few reasons:

  • It is FREE to you. Rental applicants pay a fee when they submit their credit report to you.
  • Designed for landlords. Easy to use, no site inspection, and no paperwork.
  • You will receive a complete report in seconds. Credit score, criminal background check, and an eviction report are presented in a straightforward recommendation.

Getting Started is Quick and Easy

  1. Set up your tenant screening account here.  Once set up, you will add your rental property address along with the applicant’s contact information and indicate if you or the applicant will pay the fee (via credit card).  Most landlords have the applicant cover the fee as part of the application process.
  2. The applicant authorizes screening.
  3. Almost instantly, you will receive the applicant’s complete report so you can make a decision. It is that simple!

Why Tenant Screening is Useful

Tenant screening is useful for landlords because it provides insight into the type of tenant an individual might be before committing them to a lease. Tenant screening with TransUnion’s SmartMove, enables landlords to learn more about a tenant’s background through their credit score, criminal background check, and eviction report.

How do I Handle a Month to Month Lease?

You may enroll a tenant on a month-to-month lease the same way you would enroll any other tenant. After your tenant completes the online enrollment agreement, they’ll receive an email entitled “One More Step”, which will contain a link asking your tenant to upload their bank documentation directly to ClearNow. This security measure further simplifies our enrollment process and eliminates the need to attach a separate file in an email.

Once we process their materials, they will be added to your account, and you will receive an email instructing you to set their rent amount and lease end date. When you input the lease end date, we recommend you set it for three to six months out so you don’t have to log in every month and extend the date. Should the tenant vacate in advance of the date you set, you will then need to unenroll the tenant from ClearNow.

We also suggest that you explain to your tenant why you set the lease end date as you decide since we will notify your tenant of the lease end date as it is set in ClearNow.

Can You Retroactively Debit a Tenant After I Update Their Lease End Date?

No. ClearNow is not able to retroactively debit your tenant’s bank account due to an expired lease end date. You will need to make arrangements with your tenant to have them pay their rent directly to you for any payment period that was missed.  Once you have entered their new lease end date, their debits will automatically resume for the next payment period.

How do I Block a Tenant’s Debit for Several Months?

A block is a one-time request to not debit your tenant’s bank account for the upcoming payment period. If you or your tenant know ahead of time that your tenant will not have the necessary funds in their bank account on their scheduled debit day, you have the option to do a one-time block. Your tenant’s bank account will not be debited, and you will need to make arrangements to have your tenant pay you directly. ClearNow debits from your tenant’s bank account will automatically resume the next payment period.

If you or your tenant do not want to debit for several payment periods, then we suggest that you unenroll the tenant and then reenroll the tenant when debits should resume. This way, you or your tenant will not forget to block a debit.

Additional ClearNow Accounts: What You Need to Know

You may want an additional ClearNow account if you need a different debit day to accommodate a tenant’s request, or if you need to deposit to a different bank account than what we currently have on file. The best way to notify us is via your ClearNow account. After you’ve logged in, from the left-hand menu select “My Info” and then “Set up Addl Acct”. There are two links, and you may use the same bank account we have on file or you may choose to deposit to a different bank account. Be sure to include what debit day you want your additional account to debit on in the box that pops up. Monthly options are the 1st, 5th, 15th, or 25th and the fee is only $7.95, which includes the debit of one tenant (additional tenant debits are $2 each, per month).

If you want to deposit to a different bank account, please be sure to complete the agreement online. Once you submit the agreement, you’ll receive an email asking you to upload your bank documentation. We can accept a voided check, bank statement, or a letter from your bank on bank letterhead.

Introducing eSignToday

ClearNow has introduced a new tool, eSignToday, to get your leases esigned.  It costs just $0.50/esignature!

Over our many years of working with landlords, we have received feedback on what would make their lives easier.  Beyond easy rent collection, another common request was easy lease signing.  Recognizing that leases are very specific to each landlord, we spent time researching how we can make lease signing easier while preserving the uniqueness of each landlord’s lease.  In addition, we wanted to apply what we have learned with ClearNow’s online rent payments where the best tools are (a) mobile friendly, (b) simple to use, and (c) a time saver.  Last but not least, the VERY BEST tools are also affordable.

Esignatures are the solution for easy signing as anyone can sign on a phone, tablet, or laptop.  You do not need a printer, and all paper and delays are eliminated!

What we have found, however, is that most esignature tools are not affordable as many of them require a monthly subscription.  So if you only need one or two signatures a month, paying $10/month is overkill.

With eSignToday, you can easily get your leases esigned . . . all for just $0.50/esignature.  ESignToday is easy and cheap.

  • Use your lease and use eSignToday for signatures
  • Tenants instantly esign on their phones at their convenience
  • Eliminate paper and delays!

Pay only $0.50/esignature.  NO monthly subscription fees.

We hope you find lease signing to be easier with eSignToday!

Set up a free account today at eSignToday.com!