A Landlord’s Guide to Online Rent Payments

Many prospective and current renters wonder “Can a landlord force you to pay rent online?” and as a landlord, it’s important to know the answer to this question so that you’re following rules on the matter. By reviewing and following these (and other) rules and laws, you can protect your property and rental income from legal action and maintain a positive reputation as a landlord.

Here’s your guide to collecting rent online, and how to navigate promoting your preferred payment policy.

So, can you be forced to pay rent online?

Yes and no.

Technically, a landlord can create a lease agreement that states they will only accept online payments. However, this contract may not be legally binding (or legal at all) if it’s for a rental property in a state that prohibits landlords from accepting only one form of payment.

For example, California’s laws (specifically California Civil Code Section 1947.3) require landlords to accept at least one of the following payment options: check, cashier’s check, or money order. If your state does not allow landlords to limit the ways a renter can pay to just one option, then no, you cannot force a renter to pay online.

In addition, if your rental agreement includes multiple payment options, you cannot require renters to choose one payment over the other or change the available payment options until the lease agreement is complete. For example, if you want to disallow a payment option, you have to wait until the end of the long-term agreement or 30-day month-to-month agreement to draft a brand new lease. Both parties must also sign this lease and agree to these new terms.

Six benefits of paying rent online — for landlords and renters

If you haven’t chosen to accept online rent payments yet, or if you need some help explaining to skeptical residents why you’ve chosen an online rental payment option, consider the following benefits for both renting and leasing parties:

1. Convenience. Renters are likely to appreciate being able to make the payment online from home or anywhere they can access the online portal. And since there’s no travel time, it’s a more efficient way to pay, too. And you as a landlord can enjoy the convenience of automated reminders and collection, a simple bank deposit process, and simple filing process.
2. Accuracy. No one likes to overpay, and many (if not all) landlords prefer to collect rent as laid out in the lease agreement to avoid the hassle of refunding over-charges or dealing with preventable legal action.
3. Payment tracking. When a renter makes an online payment, both of you get a notification about the incoming payment, including the date and time the renter submitted it, how much they paid, and when it’s expected to arrive to the landlord’s account. All of this information can help a renter feel confident that they’re on top of their account. You, the landlord, will be glad to know when you can expect your rental income for bookkeeping purposes.
4. Official receipts. Renters and landlords can access the official receipts of transactions between the two parties. For example, an online rental portal can show when a renter paid their balance as well as when a landlord issued a refund or discount. This kind of historical transaction data can come in handy if any disputes arise or if you, the landlord, need to provide documentation for tax or other business purposes.
5. Reminders. Some online rental payment portals give you the option to send renters regular reminders, such as once a month about a week before rent is due, to pay rent. You can typically use the standard reminder email the tool provides, or you can create your own that’s more personalized. Be sure to include the amount due, when it’s due by, and how the renter can pay. 
6. Accountability. The convenience of online payment combined with regular reminders can keep renters accountable and make it more likely for them to pay in full, on time. Many online rental payment portals allow auto pay, which can further improve a renter’s reliability to pay rent on time.

How to encourage online payment

Try the following three tips to promote the best rent collection option for you and convince more renters to choose secure online rent payment.

Make it super easy to pay rent online

Choose an online rent collection and billing tool that’s easy for you, and renters, to access, navigate, and use correctly. Zumper makes it easy for renters to pay online and for you, the landlord, to collect your income with the rent collection tool that comes with a landlord account. Going with a convenient online rent collection tool is a simple way to convince more renters to choose online payment over any other options.

Advertise your preferences from the beginning

When you write a listing for your rental, and because marketing your rental property means letting prospective renters know how great it is, you can emphasize just how easy and convenient it is to pay rent online. Letting renters know it’s a perk for them, too, can better encourage them to use that tool.

However, including language like “landlord requires electronic payment” in the listing or rental agreement can get you in hot water in some states. So it’s best to explain the payment options that you do accept in clear, concise terms, such as “We prefer online rental payments but will also accept checks,” instead.

You can also demonstrate how to use the online rental payment system to new or prospective renters so they’re prepared and impressed.

Send email reminders

Consider reminding renters that you do offer online rental payment, such as if you send monthly reminders for rent due. Doing so via email is even more convenient because you can include a link to where they can submit their online rent payment and brief instructions for how to set up and access their account. This step can be especially helpful for converting long-time check-writers to online-payment pros.

Be sure to check your state’s or city’s laws regarding whether you’re able to limit payment options to your preferred choice of online payment. And if you’re not able to require just online payments, talk with your renters about the shared benefits of paying rent online to keep an open and honest conversation.