Rentdrop and Rentler are two software solutions for rental property owners and landlords to collect rent from tenants. Most successful landlords agree that collecting rent online has many advantages. However, choosing a suitable rental payment solution for your business can be challenging. First, you need a way for tenants to pay rent on time every month. Second, the app should put you in control of rent payments.
As a landlord, you know the challenge of collecting rent payments from tenants. Rentler and Rentdrop are two apps that help landlords collect rent in an innovative way. These apps have their own unique features and benefits for landlords and rental property owners.
If you are considering using an online solution for rent payments, which is the best — Rentdrop or Rentler? This article puts both rent payment solutions side by side to let you compare their features. The review of these rent collection apps will help you make an informed decision on which one to choose.
In comparing the features of Rentdrop and Rentler, we’ll include the following:
- Cost to landlords to collect rent online
- Cost to tenants to make online rent payments
- Option to allow roommates to split rent
- Block a partial payment feature
- Set automatic or recurring rent payments for tenants
- Automatically calculate late fees
- Send rent payment reminders
- Payment receipts and reporting
- Reporting to credit bureaus
- A tenant can pay rent by ACH transfer, debit card, or credit card
So which is better for you — Rentler or RentDrop? This review examines the pros and cons of both payment collection apps. At the end of the article, you can decide which one is a better solution for collecting rent payments on your property.
Rentdrop vs. Rentler — At a Glance
What is Rentdrop?
Rentdrop is an easy-to-use free payment app to automate the entire rent payment process. Tenants can pay rent for free using a credit card, debit card, or ACH bank transfer and build credit history. In addition, Rentdrop allows landlords to set up payment reminders and block a partial payment.
What is Rentler?
Rentler is similar to Rentdrop because it is free for tenants and landlords. With Rentler, tenants can pay rent online, post maintenance requests, and report rent payments to credit bureaus. Landlords can list vacancies and pay extra for tenant screening and digital application processing. Like Rentdrop, Rentler is for landlords with a few properties.
Rentdrop or Rentler vs. Paypal for Rent Payments?
Before reviewing Rentdtop and Rentler, an important question is: Is an online payment service like PayPal good for landlords?
It may seem that PayPal is ideal for rent payments because it’s a convenient and safe way to shop online. However, there are several reasons why landlords should avoid collecting rent with PayPal.
First, Paypal doesn’t protect landlords if something goes wrong with a tenant’s rent payment. Therefore, you could be out of pocket if the tenant mistakenly pays the wrong person. While your tenants can pay rent for free, you must pay hefty transaction fees when using PayPal for business accounts.
One vitally important reason to avoid PayPal for rent payments is that you can’t block a partial payment. When collecting rent online, the option to stop partial rent payments is crucial. But why is stopping a partial payment vital for a rent collection app?
Suppose you are must evict a tenant for non-payment of rent. In that case, you need to stop the tenant from paying part of the rent. Otherwise, they could derail the eviction process simply by paying a few dollars. Therefore, you may find it almost impossible to evict them before the end of the lease agreement.
Related reading: Costly eviction mistakes to avoid.
Rentdrop or Rentler vs. Paper Check for Rent Payments?
One of the benefits of using a rent payment app like Rentdrop is avoiding accepting rent checks or cash payments. Surprising as it seems, many tenants still send a monthly check to their landlords. However, collecting rent by check severely impacts your cash flow.
What are the reasons to avoid letting tenants pay by check? First, paper checks take several days to process. Second, collecting rent by check puts you at risk of fraud. And there is always the chance that a check will bounce. Then there is the time it takes to enter each rent payment in a ledger.
The risks associated with collecting rent checks or using a peer-to-peer app like PayPal, CashApp, or Venmo is a reason why many landlords use a dedicated rental property management app. So, which is best for rent payments — Rentdrop or Rentler?
The Features of Rentler for Rent Payments
Let’s look in detail at what features Rentler offers landlords and tenants.
Cost of Rentler to landlords to collect rent online
Rentler is free for landlords to use to collect rent from tenants. The landlord features of Rentler like automatic late fees, messaging, and applications are free to use. Landlords may have to pay processing fees for listings, rentability reports, and access to legal forms.
Cost of Rentler to tenants to make online rent payments
Rentler is free for tenants to make ACH bank transfer payments. However, a tenant must pay a small fee of 2.9% per transaction to pay rent with a credit or debit card. Like Rentdrop, using Rentler to pay rent is suitable for landlords because money is transferred in four days or less.
Rentler Options to make it easy for tenants to pay rent online
Rentler has several features for tenants to make rent payments without any hassle. After all, any app to pay rent must be straightforward and feature-rich for tenants. Some of the features included in Rentler are:
- Recurring rent payments: A standard part of most property management apps is letting tenants set up automatic payments. Rentler has this feature to prevent tenants from forgetting to pay rent.
- Split rent with roommates: Rentler has a feature allowing roommates to split rent individually. Again this feature is standard in rent payment apps. However, it is extremely useful in a multi-tenancy rental unit.
- Report rent to credit bureaus: A nice feature of Rentler and Rentdrop is the option for tenants to report rent payments to credit bureaus. Very often, rent is the largest monthly bill tenants pay. So, it makes sense to let them build credit history this way.
- Online payments: Collecting rent online is the best option for landlords. Rentler has free ACH rent payments for tenants. However, tenants must pay transaction fees to make debit card or credit card payments.
Rentler options to help landlords control rent payments
One of the reasons to use property management software is to streamline your rental business. In addition, a rent payment app must put you in control of rent payments, especially if you need to evict a tenant. So, how valuable is Rentler for landlords?
- Cost to use the app: Rentler is free for landlords to use. The app has add-ons for additional services.
- Block partial payments: One of the significant downsides to Rentler is that you can’t block a partial rent payment. This means that a tenant’s rent payment — however small — is recorded. In some cases, this can make it problematic and expensive to evict a tenant for a lease violation.
- Charge for landlords to receive rental payments: All fees associated with making rent payments are charged to the tenant. Of course, this is better than using PayPal or CashApp for rent payments. However, many tenants don’t like the idea of paying transactions fees for debit cards.
- Payment receipts and reporting: An essential feature for landlords that Rentler seems to lack is payment reporting and receipts. This handy feature is found in many of the best rent collection apps, and it makes tracking rent payments more straightforward.
The Features of Rentdrop for Rent Payments
Rentdrop is an easy online payment service designed for rent payments. Therefore, Rentdrop has several features making it easy for landlords and property managers to collect rent from tenants. The essential part is electronic rent payments to give tenants a better renting experience. However, features like blocking partial payments, rent reporting, and building credit history are also vitally important.
Cost to landlords to collect rent online
One of the most crucial considerations when choosing a suitable rent collection app is cost. How much does Rentdrop cost for landlords to use? Rentdrop is always free for landlords. This means that you never have to pay any transaction fees for accepting a rent payment.
Like most property management apps, there are additional add-ons for extra services.
Cost to tenants to make online rent payments
One compelling reason tenants use Rentdrop for paying rent online is that it’s free. You can assure tenants there are no hidden fees for making ACH direct transfers or paying by debit card. The only exception is for making credit card payments. However, it’s standard across the board that online credit card payments incur an extra fee.
Rentdrop options to make it easy for tenants to make rent payments
With Rentdrop, tenants can make their rent payments in the easiest way possible. The rent payment software is feature-rich for tenants and straightforward to use. Here are some of the excellent features of Rentdrop:
- Recurring rent payments: Rentdrop lets tenants set up regular monthly rent payments to landlords. This is one of the best ways for tenants to make on-time rent payments. This feature also boosts your cash flow by minimizing the number of late payments you receive.
- Roommate payments: Another critical feature of Rentdrop to you and your tenants is splitting rent with roommates. Letting each tenant on the lease agreement pay rent directly to you encourages responsibility.
- Report rent to credit bureaus: Like all the best rent collection solutions, Rentdrop has the option of reporting rent payments to credit bureaus (coming soon). This feature can encourage tenants to ditch paying rent by check and embrace online rent payments.
- Online payments: There are several advantages for tenants who pay rent online. Rentdrop offers multiple payment methods to suit your individual tenant’s needs. They can pay rent by credit card, debit card, or direct bank transfer with bank-level security.
Rentdrop options so that collecting rent is straightforward for landlords
Want to streamline your rental business? Rentdrop has all the features you need to accept online rent payment. Additionally, unlike Rentler, Rentdrop puts you in control of rent payments. Here are some reasons many successful landlords choose Rentdop to manage rent collection:
- Cost to use the app: Rentdrop is entirely free for landlords. There are no transaction fees to pay, making Rentdrop cheaper and easier than PayPal, Venmo, or Zelle for rent payments.
- Block partial payments: Rentdrop excels over Rentler because it has the option of blocking a partial payment. For example, you can stop a tenant from paying part of the rent during an eviction process for non-payment of rent or other lease violations. This option allows you to evict a tenant faster.
- Charge for landlords to receive rental payments: You don’t have to pay any transaction fees to accept online payments.
- Late fee calculation: Another way that Rentdrop streamlines your business is that it automates “dues payments.” The software automatically calculates late fees and adds them to the next month’s rent.
- Payment receipts and reporting: Another difference between Rentdrop and Rentler is rent payment tracking. You can get a complete overview of each tenant’s rent payment history.
Rentdrop or Rentler — Which Comes Out On Top?
Comparing Rentdrop and Rentler, it’s evident that both apps are excellent choices for collecting rent online. There are no setup fees or monthly subscription fees for landlords or tenants. This means that the choice comes down to specific features of the rent payment apps.
One of the significant flaws with Rentler is that you can’t block a partial payment. This option is crucial during an eviction procedure to stop a delinquent tenant from paying a few dollars in rent to halt the eviction. Because eviction is a costly process that takes time, you can’t afford to allow a tenant to make a partial payment. This is also a compelling reason why savvy landlords stay clear of PayPal, CashApp, Zelle, and Venmo for rent collection.
Rentdrop is a free rent payment management software for landlords and property managers. It is one of the easiest, most reliable ways to collect rent. In addition, Rentdrop improves the rental experience for your tenants.
As a landlord, you have a lot to worry about, and Rentdrop makes sure that collecting rent isn’t one of them.