Knowing how to reject a Venmo payment for rent is sometimes necessary for landlords. Using a digital wallet to pay rent money seems like a good idea. You can avoid the hassle of processing rent checks and avoid accepting cash for rent. However, using a peer-to-peer payment app like Venmo seems ideal until you need to reject a partial payment.
Many landlords have used Venmo successfully for years to collect rent. However, during an eviction process, they learn that they must know how to reject Venmo payments. Declining a Venmo rent payment is crucial to prevent the tenant facing eviction from making a partial payment.
Of course, from a tenant’s perspective, using Venmo to pay rent is relatively straightforward. They don’t need to mail rent checks and worry about them getting lost in the post. All a tenant needs to do to pay rent with Venmo is enter your contact information like your email address or mobile phone number and the rent amount.
This article examines how you can reject an unwanted Venmo payment from a delinquent tenant. In addition, you’ll learn about suitable alternatives to Venmo to manage rent payments.
Why Reject a Venmo Payment
The typical scenario when it’s necessary to decline a rent payment in Venmo is when you’ve started an eviction process. In many states, an eviction court will stop proceedings if the landlord accepts a partial payment. The partial rent payment is viewed as the tenant’s efforts to resolve the reason for eviction.
Unless you have worked out a payment plan with the tenant and got it in writing, you should always reject partial payments during an eviction.
How to Reject a Venmo Payment
Unfortunately, rejecting a Venmo rent payment is impossible because there is no “decline payment” or “cancel Venmo payment” option. Venmo payments are instant and can’t be canceled once authorized. This means that using Venmo for rent collection is problematic for landlords because it’s impossible to reject a partial payment.
Various guides to Venmo payments advise alternative methods for rejecting money sent to your Venmo account. For example, it is possible to return the rent money to the tenant. Unfortunately, this isn’t a suitable solution because you still accepted the partial payment.
The only instance when Venmo customer support will intervene and cancel the unwanted payment is if it’s from someone you don’t know. Regarding canceling payments, the Venmo website has the following information:
- It is not possible to cancel a payment to an existing Venmo account.
- If you receive a payment from someone you don’t know, Venmo support will help to reverse the payment.
The only time you can reject a Venmo payment is if you receive a payment request from a stranger. However, this doesn’t apply to the monthly rent payment from a tenant.
Can You Cancel a Venmo Payment?
Another issue with using Venmo to manage rent payments is that tenants can’t cancel payments. For example, suppose a tenant accidentally sends rent money in error to the wrong person. In that case, they can’t cancel the money transfer. Furthermore, once the money is in someone else’s account, the transaction can’t be canceled.
What can a tenant do if they made a payment by mistake and sent rent money to the wrong person? In that case, they must contact the recipient and request the money back. However, there is no guarantee that the person will do this.
What does this mean for your cash flow? Because you can’t cancel a Venmo rent payment, the tenant may be late with the rent money until they resolve the payment issue. Sometimes, they may not have enough to cover the rent bill if the money isn’t returned.
Related reading: One reason to avoid Venmo for rent payments.
How to Block a Partial Payment — Use a Venmo Alternative
Venmo doesn’t have the option to reject a payment. Therefore, the best solution for running a successful landlord business is to use an online rent payment solution.
For example, Rentdrop is an excellent alternative to Venmo for managing rent payments. Rentdrop lets you reject partial payments and has lots of helpful rent payment tools.
Rentdrop vs. Venmo —Which Payment App is Best for Rent Collection
Savvy landlords use digital tools to collect rent online. Although Venmo facilitates online rent payments, it lacks the functionality of Rentdrop. Here is a comparison of the two apps to see why Rentdrop is superior to Venmo for rent collection.
How do Rentdrop and Venmo compare when it comes to costs for landlords?
Venmo charges landlords and rental property owners business transaction fees. This means that for every received rental payment, you must pay Venmo fees. Although Venmo claims their fees are small, you could spend thousands of dollars a year to collect rent.
Rentdrop costs nothing for landlords to use. There are no fees for business transactions to accept debit card payments or ACH bank transfers. And credit card processing fees are charged to the tenant. Additionally, you benefit from fee-free fast bank deposit payments to your bank account.
Block a partial payment
Venmo has no feature to reject a payment if a tenant is facing eviction. This means Venmo could hinder the eviction process and cause it to drag out. Therefore, you are losing rent money and paying more court fees to evict the delinquent tenant during this time.
Rentdrop lets you reject a partial rent payment if you start eviction proceedings for a lease violation, like non-payment of rent. Therefore, rent payments are declined if they are not for the total amount, including any late payment fees due.
Automatic late fee calculation
Venmo doesn’t have a feature that calculates fees for late rent payments automatically. Most landlords include a late fees policy in the rental agreement. But if you use Venmo, you must calculate and charge them automatically. Unfortunately, this increases the risk of mistakes and gives you extra work.
Rentdrop has a valuable feature of automatically calculating and charging late payment fees. All you need to do is set the parameters in line with the late fees policy in the rental agreement. Then, the appropriate penalty charge is made to the tenant. No mistakes, no work. It’s just so easy.
Send payment reminders to tenants
Do you want to minimize the number of times tenants miss a rent payment? If so, sending payment reminders is useful. How do Venmo and Rentdrop compare?
Venmo lacks any functionality to send rent reminders to tenants. Of course, you can use a third-party messaging app, but this takes extra time and money to set up and operate.
Rentdrop has a built-in tool for landlords allowing you to bulk message tenants with rent reminders. This is an excellent way to give your tenants a gentle nudge that the rent payment date is approaching.
Rent reporting to credit bureaus (coming soon)
Reporting rent payments to credit bureaus is a fantastic service to offer tenants. After all, rent is your tenant’s largest recurring monthly bill. And they have an incentive to pay rent on time, knowing it will impact their credit score.
Venmo doesn’t have any option to let tenants report large payments like rent and other utilities to credit reporting agencies. Unfortunately, this means that renters will find it challenging to build a healthy credit history.
Rentdrop will soon offer a handy feature to report rent payments to the major credit bureaus. This service can significantly benefit your rental business. How so? A survey by TransUnion found that rent reporting has the following benefits to landlords:
- Fill vacancies faster: Sixty percent of Gen Z say they would choose a landlord who reports rental payments in favor of one who doesn’t.
- On-time rental payments: Rent reporting gives tenants strong incentives never to miss a rent payment.
- Grow your business: Reporting rent payments to credit agencies gives you the edge over your competition. Only 15 percent of landlords currently offer the service.
- Attract more responsible tenants: Prospective tenants who want rent payments reported are typically more financially responsible.
Rentdrop vs. Venmo — Which App is Best for Rent Payments
Most tenants pay their bills, shop, and order food online. So, why not pay rent as well? The truth is that tenants would instead use an online payment service to pay rent than mail a paper check or pay rent with cash. That’s a reason many tenants enjoy paying rent using Venmo.
But does Rentdrop have advantages over Venmo when it comes to paying rent? Here is a comparison of Rentdrop and Venmo from the tenant’s perspective.
Recurring rent payments
Venmo doesn’t allow tenants to set up automatic rent payments. Unfortunately, this means tenants risk missing the rent due date due to forgetfulness or another reason. Also, it’s time-consuming to enter payment details every month. And there is always the risk of making an accidental payment to the wrong person.
Rentdrop offers tenants the valuable option of making automatic payments or a one-time payment. This feature doesn’t just benefit tenants by saving precious time. It helps ensure that you receive on-time rent payments every month.
The range of payment methods
Venmo and Rentdrop offer tenants various forms of payment to send rent money. Therefore, tenants can choose to make payments by debit card, credit card, or direct deposit. When making a credit card payment, the tenant incurs a processing fee when using Venmo or Rentdrop.
Split rent with roommates
Venmo doesn’t have any function to allow roommates to split rent with roommates. Of course, Venmo was designed to transfer money quickly between friends. And you could use Venmo to send a roommate your share of the rent. However, one person is still responsible for paying the landlord.
Rentdrop is perfect for multi-tenancy apartments where roommates share the rent. The “split rent with roommates” function allows each tenant on the lease to pay their portion of the rent directly to the landlord. This function increases individual responsibility for making rent payments.
Report rent to credit bureaus
Venmo doesn’t benefit tenants who use the app to pay rent. This is because there is no option to report their most significant monthly expense to the credit reporting agencies. The only solution would be to use a Venmo credit card to pay rent and clear the balance monthly.
Rentdrop will soon have the function to allow tenants to improve their credit standing by reporting rent payments. According to some reports, rent reporting can boost 70 percent of credit scores within a few months.
In Conclusion — Rejecting a Venmo Payment
It is impossible to decline or reject a Venmo payment, making the app useless for landlords. Additionally, Venmo lacks vital tools for landlords and tenants to simplify the rental process and manage rent payments. Therefore, it’s best to look for a suitable alternative.
Rentdrop is free for landlords and tenants to manage rent payments. The online rental payment service has the ease of Venmo for sending rent money to landlords. However, it puts landlords in control of rent payments by having the function to reject a partial payment.
Why not sign up for Rentdrop today. There are no signup fees and no monthly subscription. In addition, rentdrop helps ensure that the rent payment process is as straightforward and seamless as possible.