Automating rent collection saves time, reduces missed payments, and keeps records organized. But not all payment platforms are created equal—and landlords must comply with privacy, fee, and notification laws. Here’s how to automate rent collection safely in 2025.
Key takeaways
- Use a platform designed for landlords/tenants—general cash apps often violate terms or expose both parties to risk.
- Always provide a written record of payments and receipts.
- Comply with privacy rules (don’t share tenant banking info) and ensure rent receipts meet state law.
- ACH and debit card payments are generally preferred over credit cards (lower fees, fewer disputes).
Modern Rent Collection Platforms (2025)
| Platform | Type | Features | Fees |
|---|---|---|---|
| Chez‑Moi | Landlord/Tenant SaaS | ACH, debit, credit; receipts; auto late fee; compliance features | ACH: $1–3; Card: 2.9% (tenant can pay fee) |
| Avail | Landlord SaaS | ACH, reporting, reminders | ACH: $2.50; Card: 3.5% |
| Zelle, Venmo, PayPal | General P2P | Fast, easy, but not recommended for rent | Varies; dispute risk |
| Cash/Check | Manual | Paper receipts, bank trips | No fee |
Compliance Tips (Federal & State)
- Receipt requirements: In many states (including Oregon, California, New York), landlords must provide a receipt for any payment not made by personal check or bank transfer. Electronic receipts from landlord software usually comply.[1]
- Late fees & timing: Only charge late fees that are disclosed in the lease and permitted by state law. Automated platforms let you set grace periods and auto-notifications.
- NSF/return fees: If a tenant’s payment bounces, only charge a returned payment fee if allowed by state/local law and clearly disclosed in your lease.
- Data privacy: Never store or share tenant banking information outside of a secure, compliant system.
- Fair housing: Apply your payment policy equally to all tenants, and offer reasonable accommodation for those unable to use electronic payments due to disability or other protected reasons.
How to Set Up Automated Rent Collection
- Choose a platform designed for rent collection (avoid cash apps).
- Update your lease to specify accepted payment methods and any associated fees.
- Invite tenants to enroll (provide guidance or FAQ for new users).
- Set up reminders for due dates and late fees.
- Download or export records for bookkeeping and tax reporting.
- Stay up to date on state/local law—some cities require in-person/cash options or cap late fees.
Tip: Require tenants to use the portal for all payments (except where law requires another option) to streamline your workflow and protect privacy.
Caution: If you refuse legal tender (cash/money order) in a state that requires it, you may lose in eviction court or face penalties.[2]