How to collect rent from tenants: 6 ways compared
There are six common ways to collect rent: cash, personal checks, money orders or cashier's checks, payment apps like Zelle or Venmo, bank transfers, and rent collection software. For most small landlords, the best setup is an online method that creates a record for every payment and a receipt for the tenant, with a paper fallback for the tenant who needs one. Here is how each method compares on cost, speed, risk and record-keeping.
Every method at a glance
| Method | Cost to you | Speed | Main risk | Record |
|---|---|---|---|---|
| Cash | None | Instant | Loss, theft, disputes about what was paid | Only if you write a receipt |
| Personal check | None | Days, plus trips to the bank | Bounced checks | Check number and bank deposit |
| Money order or cashier's check | None (tenant pays a small fee) | Days, plus trips to the bank | Counterfeits | Serial number |
| Zelle, Venmo, Cash App | Usually none on personal accounts | Fast | App terms, limits, scams, thin records | App history only |
| Bank transfer or bill pay | Usually none | A few business days | Unlabeled deposits | Bank statement |
| Rent collection software | Varies by service | A few business days for bank payments | Fees if you pick the wrong service | Full ledger and receipts |
Cash
Cash costs nothing and never bounces, but it is the hardest to prove. If a tenant says they paid and you say they did not, a cash payment without a receipt is one person's word against another's. If you accept cash, always give a written, numbered receipt, and check your state's rules, since some states require a receipt for cash rent. See what a rent receipt must include.
Personal checks
Checks are still common, especially with older tenants. They leave a paper trail, but they also mean waiting for the mail, driving to the bank or depositing by phone, and the occasional bounced check, which can mean a bank fee and a month of rent that turns out not to be paid. If you take checks, say in the lease what happens if one bounces, and consider requiring certified funds after a returned check.
Money orders and cashier's checks
These are guaranteed funds when they are real, which makes them popular with tenants who do not have a checking account. Counterfeits do exist. Keep a copy or photo of each one with its serial number, and if anything looks off, verify it with the issuer before you treat the rent as paid.
Zelle, Venmo and Cash App
Payment apps are fast and familiar, which is why so many small landlords use them. The downsides show up later: payments are hard to reverse if a tenant sends money to the wrong person, there is no link between a payment and the month it covers, personal accounts may not be intended for business use under the app's terms, and you get no lease-aware ledger at tax time. We cover the details, plus a message for moving tenants off them, in Zelle, Venmo and Cash App for rent.
Bank transfers and bill pay
Some tenants set up a recurring transfer or bill pay from their bank to yours. It is cheap and reliable once it is set up, but it is entirely on the tenant's side: you cannot see when it is coming, it often arrives with a vague description, and if the amount changes at renewal the tenant has to remember to update it. You end up matching bank lines to tenants by hand.
Rent collection software
Rent collection software is built for this job. The tenant gets an invoice and a link, pays by bank transfer (ACH) or card, and the payment posts to the right month with a receipt for both of you. Reminders, late fees and autopay can run without you. The main thing to compare is cost: some services charge the landlord a monthly fee, some charge the tenant a fee per payment, and some do both. Read the fee page before you sign up. See also ACH vs. card for rent and whether a landlord can charge a convenience fee.
Can you require tenants to pay one way?
Often, but not always. Some states limit a landlord's ability to require online payment only, or require you to accept at least one method that does not involve a fee or an electronic account. Check before you write "online payment only" into a lease: can a landlord require tenants to pay rent online?
What works best for a small landlord
A setup many small landlords settle on:
- An online default that tenants can pay by bank transfer or card, with automatic invoices and receipts.
- A paper fallback (check or money order) for the tenant who cannot or will not pay online, recorded in the same system so the ledger stays complete.
- No cash without a receipt, ever.
How RentMerchant fits
RentMerchant is rent collection software for landlords with one property or many. Set up monthly rent once and each invoice is created and emailed on its own. Tenants pay by bank transfer or card through a portal with your name on it, card autopay is available, and payments are deposited to your bank through your own Stripe account. When a tenant pays by cash, check or money order, you record it against the invoice, so every payment, online or not, is in one ledger.
The Free plan covers up to three properties with unlimited units. See exactly what each payment costs on the fees page, or create a free landlord account.
Frequently asked questions
What is the best way for a small landlord to collect rent?
For most small landlords, an online method that tenants can pay by bank transfer or card, with an automatic invoice and receipt for every payment, plus a paper fallback such as a check or money order for a tenant who needs one. Record every payment, online or not, in one ledger, and never accept cash without a written receipt.
Is it safe to accept rent through Zelle or Venmo?
Many landlords do, but payment apps have drawbacks for rent: payments are hard to reverse if sent to the wrong person, there is no link between a payment and the month it covers, personal accounts may not be intended for business use under the app terms, and records at tax time are thin.
Can a landlord require rent to be paid online only?
Often, but not everywhere. Some states limit online-only rent requirements or require landlords to accept at least one payment method that does not involve a fee or an electronic account. Check your state rules before putting an online-only clause in a lease.
Should I accept cash for rent?
Cash never bounces, but it is the hardest payment to prove. If you accept it, always give a written, numbered receipt and record the payment the same day. Some states require landlords to give a receipt for cash rent.
How much does rent collection software cost?
It varies. Some services charge the landlord a monthly fee, some charge the tenant a fee per payment, and some do both. RentMerchant is free for up to three properties with unlimited units, and its fees page lists the exact cost of each bank and card payment.
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