As a landlord, rent collection is one of the most challenging tasks. From tracking monthly payments to chasing down overdue rent payments, it’s no wonder landlords and property managers are ditching cash and checks to collect rent payments online.
However, not all online rent payment collection tools are created equal. In this article, we’ll compare collecting rent payments through Cash App vs. Baselane to help you choose the best online rent payment method.
Key Takeaways: Cash App vs. Baselane
- Baselane has an auto-pay feature for setting up monthly recurring payments, and Cash App doesn’t.
- Baselane can automatically notify tenants of upcoming rent payments or when rent is overdue. Cash App can’t send these notifications.
- Baselane can notify landlords of late rent payments, how many days rent is overdue, or whether rent has been paid. Cash App can’t send these alerts.
- Baselane can automatically charge late fees when rent is past due. In Cash App, late fees must be manually added through a separate transaction.
- Baselane offers secure payments. Cash App offers some security but no protection against fraud and accidental transfers to the wrong person.
- Adding contacts and signing up for an account with Cash App is easier than Baselane.
- Baselane allows landlords to block partial payments, an essential feature Cash App does not have.
- Baselane allows you to process security deposits and other fees securely. Cash App rent collection will only allow you to collect rent payments.
- Baselane gives the tenant user-friendly payment methods and complete transparency with payment history and reporting, and Cash App doesn’t.
Baselane vs. Cash App: Overview
Both Cash App and Baselane offer online rent collection for landlords, making it easier for tenants to pay rent on time using multiple payment options. Before we dive deeper into each service, the comparison chart below gives you a snapshot of Baselane vs. Cash App.
Put rent collection on auto-pilot
Get paid on time with automated rent payments, reminders, and late fees.
Cash App Overview
Cash App is a popular peer-to-peer payment service that transfers cash instantly. This digital wallet owned by Square, Inc. works similarly to collecting rent with PayPal, Venmo, and Zelle.
But as a landlord, this may not be your safest option for accepting online rent payments, as there is no protection against sending funds to the wrong person. A tenant may send rent payments to someone else, and you may not realize until it’s too late.
How it works: Rent payments sent through Cash App get deposited within 1-3 business days. Landlords must pay a fee of 1.5% to have funds deposited instantly into their bank account. Tenants can link their bank account, credit or debit card, and there is an option for automatic payments.
Payment Methods: Tenants can link most bank institutions to their Cash App account, but the limit on rent payments could impact your cash flow. Tenants paying rent online can only send up to $250 in a seven-day period and $1,000 in 30 days. There is an option to increase send limits to $7,500 a week with identity verification.
Tracking: Cash App sends notifications when money is received. There is no option to track or set up fees for late rent payments, and funds can accidentally end up in the wrong hands with typos and instant transfers without buyer protection.
Baselane Overview
Baselane is built for landlords. Both landlords and real estate investors can use Baselane to simplify online rent collection, bookkeeping, banking, and rental property management.
How it works: Besides rent payments, Baselane can collect security deposits and other fees. Tenants can set up auto-payments using debit cards, credit cards, and ACH bank transfers. Online rent payments take 2-5 business days to process.
Payment Methods: Tenants can link their payment method from any banking institution. There are no transfer limits for rent payments sent through Baselane. Unlike Cash App, Baselane is connected to a bank account to eliminate the chance of sending money to the wrong person.
Tracking: Both tenants and landlords can view payment history and records with Baselane. Options for automatic late payment reminders will save time and energy while keeping tenants on track.
Cash App vs. Baselane: Features
Before you decide if tenants should start paying their rent with Cash App vs. Baselane, let’s compare the features of each online rent payment option.
Cash App: Online Rent Collection Features
- Easy to pay rent for a wide range of services.
- The Cash App mobile app is compatible with rental business payments.
- Send money using an email address, phone number, or $Cashtag.
Baselane: Online Rent Collection Features
- Quick and easy sign-up process!
- Payments for rent, security deposits, and other fees are deposited directly into a landlord’s bank account within two business days through our online rent payment service.
- Tenants can make one-time payments or set up auto-pay for recurring rent payments debited from their bank account using our online rent collection service.
- Tenants can pay rent using debit or credit card payments or ACH transfers from their bank account through our online rent payment service.
- Tenants can manage and pay online rent payments from any desktop, mobile, or tablet device.
- Automated rent reminders and payment confirmations are sent to tenants.
- Landlords can easily track payment history and any overdue rent payments
- Landlords can receive real-time notifications of online rent payments.
- Online rent payments are secure with 256-bit SSL bank-level encryption.
- Independent landlords can track rental property finances.
- Generate one-time invoices.
| Features | Baselane | CashApp |
|---|---|---|
| Rent Collection | Free online rent collection for landlords and no transaction fees on ACH payments for tenants | Not directly offered, but can receive payments |
| Accounting Tools | Comprehensive landlord accounting and bookkeeping features | Basic personal finance tools available |
| Tax Reporting and Analytics | ||
| Banking built for Landlord | Yes, with virtual accounts and cards | No, primarily peer-to-peer transactions |
| Tenant Screening | Coming soon | No tenant screening services |
| Payment Security | Bank account integration and enhanced security features for transactions | No protection against accidental transfers to the wrong person. |
| Security Deposit Accounts for Landlords | ||
| Automated Payment Reminders | ||
| Auto-Pay Rent Option | ||
| Quickbooks Integration |
*Tenant payments via ACH not deposited into a Baselane Banking account will incur a $2 fee. Landlords can cover the fee or pass it on to the tenant.
Cash App vs. Baselane: Collecting Rent Online
Baselane and Cash App make it easy to collect rent online. To determine which online rent collection app is better for your online rent collection needs, consider some notable differences:
Collecting Rent with Cash App
- Both tenant and landlord must install the rent collection app
- Tenant enters landlord’s email, phone number, or $Cashtag
- Enter the reason for payment
- Accept amount
Collecting Rent with Baselane
- Sign up
- Connect a receiving bank account
- Add rent payment collection details and invite tenants
- Collect rent
- Track and manage rent payments
Keep in mind that landlords don’t have the option to block partial rent payments with CashApp. Collecting partial rent payments can create issues with the eviction process in some states. For instance, Texas will make you restart the eviction proceedings if you accept a partial payment after filing in court. You should check with your state’s eviction laws for regulations on accepting late rent payments.
When you process online rent collection through a platform designed for landlords like Baselane, you can manage, track, and stop partial or late payments.
We asked a multi-unit real estate investor in Florida to compare the best online rent payment systems with rent checks. After making the switch, the investor reported, “Baselane has transformed how I manage my properties because everything is automated in one place.”
Final Thoughts
Cash App is easy to use but not built for landlords. It’s more for quick payments between friends. On the other hand, Baselane is made just for landlords. It helps you keep everything in order, from collecting rent to tracking your property expenses.
Ready to say goodbye to the stress of monthly rent collection? Baselane’s got all the tools you need in one place. 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.
FAQs
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.
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.
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
Banking built for real estate
- Multiple accounts per property
- No monthly fees or minimum balances
- Earn up to 4.19% APY2 and up to 5% cash back3
