Earn up to 3.77% APY2.  No account fees. No minimum balances.

  • Updated: 23 Sep 2024
  • 4 Min Read

Collecting Rent Through Cash App vs. Baselane: Which One is Better?

Cash App is a popular mobile payment service that many people use for everyday transactions. But can it compete with Baselane’s all-in-one banking and finance built for real estate?

In this blog, we’ll compare Cash App vs. Baselane to see which one is better for online rent collection.

Key Takeaways

  • While Cash App allows for easy and instant transactions, it lacks specific security measures for rent payments.
  • Baselane offers integrated rent collection features, including automated invoices, built-in banking, and tenant portals.
  • Baselane automates payment reminders and late fees, which Cash App doesn’t offer.

Baselane Overview

Baselane is an all-in-one banking and finance platform built for landlords and real estate investors. With Baselane, you get integrated online banking, rent collection, bookkeeping, and more—all in one place for $0 per month.

Tenants can pay by ACH or card from any device and easily set up auto-pay. Besides rent payments, Baselane can collect security deposits and other one-time or recurring fees.

Unlike Cash App, there are no transfer limits for rent payments sent through Baselane. Plus, Baselane links directly to a bank account to reduce the risk of sending money to the wrong person.

Baselane Key Features

  • Free online rent collection for landlords via ACH or card
  • Automated invoices, rent reminders, and late fees
  • Payment history and tracking
  • Real-time payment notifications and tracking
  • Built-in landlord banking
  • Automated income and expense tracking
  • Cash flow analytics by property or portfolio

Baselane Pricing

baselane is free

Baselane Pros and Cons

Pros

  • Secure tenant portal to pay rent and view previous payments
  • Fast payouts in 2-5 days
  • Option to add additional fees (pet fee, etc.)
  • Tenant auto-pay
  • High payment limits
  • User-friendly for landlords and tenants

Cons

  • No feature for tenant communication (coming soon)
  • No mobile app (coming soon)

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Cash App Overview

Cash App is a popular peer-to-peer payment service that transfers money instantly. Owned by Square, Inc., it works like PayPal, Venmo, and Zelle.

However, Cash App for rent collection might not be the safest choice. There’s no protection if you send funds to the wrong person. A tenant could send rent to someone else by mistake, and you might not notice until it’s too late.

Cash App payment limits aren’t very cash-flow-friendly, either. Tenants paying rent online can only send up to $250 in a 7-day period and $1,000 in 30 days. There is an option to increase send limits to $7,500 a week with identity verification.

Cash App Key Features

  • Sends alerts when money is received
  • Tenants can link their bank account, credit or debit card for payments
  • Tenants can set up auto-pay
  • Tenants can pay online rent payments in installments
  • Payments are deposited in 1-3 days or instantly for a fee (0.50-1.75%)

Cash App Pricing

ACH Fees:

  • Personal Accounts: $0
  • Merchant Accounts: Goods/Services: 2.99%, All other transactions: 3.49% + $0.49

Debit/Credit Card Payment Fee: 2.99% + $0.49 per transaction

Cash App Pros and Cons

Pros

  • Send money using an email address, phone number, or $Cashtag
  • Offers basic personal finance tools (not specific to real estate)
  • Additional features for Bitcoin trading and stock investment

Cons

  • Digital wallet and P2P payment method (not made for landlords)
  • No late fee tracking
  • No landlord banking features
  • No tenant portal
  • No option to add additional fees
  • Maximum transfer limits on rent payments
  • Requires manual payment transfers from Cash App to bank account

Cash App vs. Baselane

BaselaneCash App
Rent Collection
Collect Rent Directly into Bank Account✔❌
Recurring Invoices✔❌
Automated Late Fees & Reminders✔❌
Fast Payments: 2-5 Days✔✔
Payment History & Tracking✔❌
Dedicated Tenant Portal✔❌
Flexible Tenant Payment Options✔✔
Tenant Auto-Pay✔❌
High Payment Limits✔❌
Banking
Unlimited Accounts Per Entity✔❌
APY InterestUp to 3.77% APY2 ❌
Cash Back on Debit CardsUp to 5%3 ❌
FDIC Insurance$3M via Thread Bank1 ❌
Virtual Cards & Spend Controls✔❌
ACH, Wires & Mailed Checks✔❌
Recurring Payments & Transfers✔❌
Accounting & Bookkeeping
Property & Unit Level Tagging✔ ❌
120 Real Estate Specific Income & Expense Categories✔ ❌
Quickbooks Integration✔ ❌
Schedule E Reporting✔ ❌
Receipt Capture✔ ❌
Auto-Generated Tax & Financial Reports✔ ❌
Real-Time Cash Flow Insights✔ ❌

Final Thoughts: Cash App vs. Baselane

When it comes to collecting rent online, Baselane stands out as the better option for landlords. Cash App is great for everyday transactions, but it’s not ideal for rent payments.

Baselane automates the rent collection, saving you hours each month and increasing on-time payments. Its advanced accounting tools, tax reporting, and analytics make it even easier to manage your rental properties and maximize your profits.

Ready to say goodbye to the stress of monthly rent collection? Sign up for a free Baselane account today.

How to choose the best rent collection app?

Know what features to look for when choosing a rent collection app.

Read blog

FAQs

What are the benefits of using rent collection software?

Not only do tenants prefer to make their payments online, but also rent collection software offers flexibility, instant invoices, and payment reminders. Property management software consolidates your banking and bookkeeping, leaving you with rent paid on time and happy tenants.

Why should I convince my tenants to switch to online payments instead of checks for rent?

As a landlord, you want to choose payment options that are easy to document and quickly process. Collecting checks from your tenants might seem like a good idea until it comes time to deposit. Your tenant may not have funds in their account, or the check could get lost in the mail. Accepting rent payments online makes it easy to track the rent, set automatic reminders, and enable recurring payments.

How can I sign up for Baselane?

Create a free Baselane account in minutes:

  • Sign up using an email, full name, and password
  • Follow the instructions in the confirmation email
  • Start exploring Baselane
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Banking built for real estate

  • Multiple accounts per property
  • No monthly fees or minimum balances
  • Earn up to 3.77% APY2 and up to 5% cash back3

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© 2024, Skylight Financial Services Inc. (Baselane). All Rights Reserved.
Baselane is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. FDIC insurance is available for funds on deposit through Thread Bank, Member FDIC. The Baselane Visa Debit Card is issued by Thread Bank, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa is accepted.

1Your deposits qualify for up to $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000 , inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://go.thread.bank/sweepdisclosure and a list of program banks at https://go.thread.bank/programbanks. Please contact customerservice@thread.bank with questions on the sweep program.

2The Annual Percentage Yield (APY) on your Savings Account is accurate as of 04/05/23. Total balances across Checking Accounts and Savings Accounts are used to calculate APY tier, but only money in Savings Accounts is eligible for interest. Total balances less than $10,000 earn 1.75% APY for Savings Accounts. Total balances between $10,000 and $24,999 earn 2.64% APY for Savings Accounts. Total Balances between $25,000 and $49,999 earn 3.06% APY for Savings Accounts. Total balances of $50,000 or more earn 3.77% APY for Savings Account. These are variable rates and are subject to change based on the target range of the Federal Funds rate. There are no minimum balances or minimum deposits required to earn interest on your Savings Account. Review the Baselane Business Deposit Account Agreement for more information.

3Cash back is credited once per month for all rewards above 1% and credited to your account with a maximum of $2,000 annual spend per calendar year. 1% cash back is credited instantly following purchase with no maximum spend. No minimum spend applies. Terms and conditions apply.

4Some states require an interest-bearing escrow account for security deposits while some don’t require interest. User is responsible to check state laws along with rules for collecting and reimbursing a refundable security deposit. A brief overview of security deposit laws for escrow accounts in all 50 states can be found here.

*All testimonials, reviews, opinions or case studies presented on our website may not be indicative of all customers. Results may vary and customers agree to proceed at their own risk.

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