Landlords have a lot of choices today when it comes to collecting rent online. Choices include focused online rent payment services to basic money transfer apps to full service property management software. They are not all created equal, so landlords should consider things like fees and initiating party before committing to a payment method. In this blog post, we will compare ClearNow vs Zelle for 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 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, ClearNow provides telephone and email support, so you can talk with a person if you wish.
Zelle for Online Rent Payment
Zelle is a money transfer app that enables tenants to transfer rent payment directly to the landlord’s bank account. It 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.
Summary of ClearNow vs Zelle for Rent Payment
|Pros and Cons
|+ 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
+Automatic income & expense tracking for landlords
+ Enroll at www.ClearNow.com
|+ General money transfer service
+ Same day transfer times
+ Tenant and landlord have to have bank accounts on the Zelle network.
+ Tenants initiate rent payment and 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.