How to Collect Rent Online: A Complete Guide for Small Landlords

Chasing down rent checks is one of the most time-consuming parts of being a landlord. You leave notes, send texts, make phone calls, and still find yourself driving across town to pick up checks or waiting days for mail delivery.

Online rent collection changes everything. Tenants pay with a click, money hits your account automatically, and you get your time back. Here's how to set it up properly.

Why Online Rent Collection?

Before we dive into the how, let's look at the why:

Speed: Online payments typically clear in 1-2 business days vs. checks that can take a week
Convenience: Tenants can pay anytime, anywhere, from their phone
Automatic records: Every payment is tracked automatically—no more manual bookkeeping
Professional image: Tenants see you as a serious, modern landlord
Reduced late payments: Automated reminders and easy payment options mean fewer missed deadlines

Step 1: Choose Your Payment Methods

Most small landlords should offer two options:

ACH (Bank Transfer): This is the gold standard. It's secure, has low fees (usually $0-1 per transaction), and feels official. Most tenants are comfortable with this.

Credit/Debit Cards: Some tenants prefer this for the rewards points or because they don't have bank accounts. Expect to pay 2.9% + $0.30 per transaction, but you can pass this fee to tenants if you choose.

Step 2: Set Up Your System

If you're using LeaseHub, this is incredibly simple:

Connect your bank account (takes 2 minutes)
Set your rent amount and due date for each unit
Invite tenants via email
They connect their payment method
Done—rent collection is now automated

Step 3: Communicate with Tenants

The key to successful adoption is clear communication. Send a message like this:

"Hi [Tenant Name], I'm upgrading our rent payment system to make things easier for both of us. Starting [Date], you'll be able to pay rent online through a secure tenant portal. You'll receive an invite email with setup instructions. This is optional—you can still pay by check if you prefer—but online payments are faster and more convenient. Let me know if you have any questions!"

Step 4: Handle the Transition

Give tenants 30 days notice before requiring online payments. During the transition:

Accept both payment methods
Help tech-hesitant tenants with setup
Remind tenants about the new system 1 week and 1 day before the switch

Pro Tips for Success

Automate late fees: Set up automatic late fees (usually 5-10% of rent or a flat $25-50) that apply after a grace period. This removes the awkward conversation and ensures consistency.

Send reminders: Automated payment reminders 3 days before and on the due date reduce late payments significantly.

Keep records: Even with automatic tracking, download monthly statements for your records. Your accountant will thank you.

Common Concerns Addressed

"What if the tenant disputes a charge?" Online payment systems have clear dispute processes. Keep your lease, communication records, and payment history organized.

"What if the tenant doesn't have a bank account?" About 5% of Americans are unbanked. For these tenants, you can accept money orders or cash (with proper documentation), or help them set up a free checking account.

"Is it secure?" Reputable platforms use bank-level encryption (256-bit SSL). It's actually more secure than checks, which can be lost, stolen, or forged.

The Bottom Line

Online rent collection isn't just a nice-to-have anymore—it's becoming the standard. Tenants expect it, and once you experience the time savings, you'll never go back to chasing checks.

Set aside 30 minutes this week to get your system configured. Your future self will thank you.