Reading, accessing, or using the information provided in this blog does not create an attorney-client relationship between the reader and the author, and any reliance on the information is at your own risk. Therefore, we make no representations or warranties regarding the completeness, accuracy, reliability, or suitability of the information contained in this article. While we strive to keep the information accurate and up-to-date, laws and regulations are subject to change, and the legal landscape may vary based on jurisdiction. The content is intended to offer general information and should not be relied upon as a substitute for professional legal advice tailored to your specific circumstances. This blog article is provided for informational purposes only and does not constitute legal advice. How to Handle Mold in Rental Properties: A Landlord’s Guide This means that these apps are ideal for both landlord and tenant and can guard against issues before they happen. PayRent provides not only the same ease of payment as platforms like Venmo do but also safety nets for landlords such as partial payment blockers, payment reminders, no instant transfer charges, and automatic late fees. If you’re a landlord in need of a safe and convenient way to accept rent payments online, consider a rent collection app specifically designed for landlords: PayRent. However, there are options for landlords that offer similar convenience levels to Venmo and similar platforms without the lack of safeguards. It simply wasn’t designed for this type of transaction. What Are the Alternatives?Īs you can see, Venmo is not the best option for landlords to collect rent from their tenants. However, with Venmo and other similar platforms, an instant transfer from Venmo to your checking account incurs an additional fee of 1.5% of the amount. Many landlords need to access the funds they receive from their tenants immediately in order to pay for their own business and personal expenses. Without safeguards in place against late payments, Venmo doesn’t offer much more convenience or protection to landlords than checks or other in-person payment options. However, Venmo doesn’t have this setting because it’s not primarily designed for business transactions. One of the most common reasons why landlords opt for online rent payments from their tenants is the convenience of a recurring payment setting. This Venmo feature also creates problems for landlords who are in the process of evicting their tenants for the same reason as the lack of partial payment blocking. This means that if your tenant accidentally sends you the wrong amount, you’ll have to figure out how to get the additional balance back to them or you’ll have to be in contact to receive the remaining balance still owed. Once a payment is sent via Venmo, it can’t be canceled by the sender. This can create a complicated situation with any landlord-tenant relationship but especially if the landlord is in the process of evicting a tenant - in some states, the eviction process is halted by a landlord receiving any amount of payment from a tenant. Many rent payment platforms have automatic partial payment blockers that prevent tenants from submitting anything other than their full rent amount. That means more administrative work for you when it comes to keeping close track of each tenant’s payment submissions and calculating late fees yourself. Unlike some money transfer platforms that are designed for rent payment, Venmo has no automatic late fee options. Most landlords have an understanding with their tenants that additional fees will be incurred if the tenant is late with their rent payment. This means that either you’re losing a small amount of your rent expectation each month or your tenant is made responsible for this extra charge, which can create sticky legal situations (especially if this expectation wasn’t made clear in your lease agreement). However, Venmo rent payments are categorized as a business transaction, which means a processing fee of 1.9% plus an additional $0.10 charge. Business Transaction FeesĪ payment that is casually exchanged between friends and family members is free on Venmo. However, there are several drawbacks that landlords should be aware of before using this and similar platforms to accept rent from tenants. The convenience of transferring payments through Venmo can’t be understated. Drawbacks of Venmo Rent Payments for Landlords
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