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  • Updated: 02 Oct 2024
  • 3 Min Read

Collecting Rent Through Zelle vs Baselane: Which is Better?

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

If you’ve ever had to chase down rent payments, you know why 6 out of 10 landlords prefer to collect rent online. With the rise of payment apps and rent collection software, landlords now have more options than ever. In this article, we’ll break down two collecting rent with Zelle vs. Baselane rent collection. Let’s see which one is the better fit for your rental properties.

Key Takeaways

  • Baselane offers online rent collection with automated payments, reminders, and late fees.
  • Zelle is used to send money between bank accounts, but it’s not meant for rent payment collection and lacks key features like rent tracking and automatic payments.
  • Baselane integrates banking, rent collection, and bookkeeping in one platform, making it easier for landlords to manage and track rental payments.
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Baselane Overview

Baselane is an all-in-one finance and banking platform made for landlords. Whether you need to collect rent online, manage security deposits, or track rental income, Baselane has you covered.

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

Unlike Zelle, Baselane is linked to a landlord’s bank account to eliminate the chance of money being sent to the wrong person. Baselane also automatically tracks payment history and charges late fees to encourage on-time rent payments.

Baselane Key Features

  • Collect rent online for free, including tenant payments, security deposits, and fees
  • Automated rent collection reminders and late fees
  • Payments deposited directly into bank account
  • Tenants can pay rent online using debit cards, credit cards, and ACH transfers from bank accounts
  • Baselane tenant portal to manage rent payments and set up auto-pay
  • Real-time rental payment notification, tracking, and detailed payment history
  • Auto-tagging rent payments to properties and categories
  • Integrated banking and bookkeeping

Baselane Pricing

baselane is free

Baselane Pros and Cons

Pros

  • Built for landlords and real estate investors
  • Flexible tenant payment methods by ACH and card
  • Earn interest on security deposits and savings
  • No fees for online rent payments via ACH
  • Block partial payments
  • Option to add additional fees (parking, pets, etc.)
  • High payment limits

Cons

  • No mobile app (coming soon)
  • No tenant communication feature (coming soon)
Automated and free Rent Collection, without the stress

Automated and free Rent Collection, without the stress

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Zelle Overview

Zelle is a peer-to-peer payment platform designed to send money between bank accounts. It’s easy to use Zelle for rent payments if you and your tenant both have banks that support Zelle. Otherwise, weekly transfers are capped at $500.

You’ll receive notifications for Zelle rent payment deposits but not for overdue payments. There’s no option to track or set up fees for late rent payments.

Tenants paying rent with Zelle can only use ACH, and there is no fraud protection or refunds if they send money to the wrong person

Zelle Key Features

  • Fast transfer of funds between supported bank accounts
  • Available on most mobile banking apps
  • Paying rent through Zelle using email or mobile number
  • Instant payment notifications

Zelle Pricing

Zelle doesn’t charge fees to send or receive money. However, your bank or credit union may charge fees for Zelle transactions.

Zelle Pros and Cons

Pros

  • Instant transfers with no processing fees through most banks
  • Easy to use for landlords and tenants already banking with Zelle-supported institutions
  • No setup required for Zelle rent payment

Cons

  • Limited to Zelle-supported banks
  • No payment option for debit or credit cards
  • No rent tracking, payment reminders, or late fees
  • No refunds for rental payments sent to the wrong person
  • Low transfer limits for banks outside Zelle network
  • Can’t block partial payments
  • No option to set up Zelle for rent auto payment

Baselane vs. Zelle

BaselaneZelle
Rent Collection
Built for 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 Daily 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: Zelle vs. Baselane

Baselane and Zelle offer flexible ways for tenants to pay rent online. The sign-up process is relatively the same, but there are some notable differences in functionality.

While Zelle can process quick payments, it lacks the property management features and financial organization that Baselane brings to the table.

Baselane integrates online rent payments, banking, bookkeeping, and rental payment tracking all in one place with no monthly fees, making it ideal for landlords who want to streamline their rental business and eliminate the hassle of managing multiple tools.

Get started with Baselane for free today!

FAQs

Why use rental property software?

Rental property software replaces multiple solutions and spreadsheets with a unified platform. In addition to landlord banking and bookkeeping, rental property software provides a safer, more reliable way of obtaining rental income. It also allows tenants the flexibility of multiple payment methods, instant invoices, and payment reminders.

What should you look for in rent collection software?

When choosing rent collection software, you want all the tools you need to manage and track your income and expenses in one place, including:

  • Rent collection
  • Payment tracking
  • Expense management
  • Property analytics
  • Landlord Banking
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
Saad started his career as a Certified Public Accountant (CPA) working for a top-tier accounting firm. He was responsible for helping audit alternative investment funds. He later worked at a hedge fund where he was responsible for preparing financial statements and implementing new technology. He also ran a successful private tax practice for five years. After completing his MBA at Duke, Saad joined The Boston Consulting Group to do management consulting. At BCG his experience spanned several industries and growth projects across Pharma, Retail, and Technology companies. His passion for democratizing finances led him to Plaid, a fintech, where he worked with large Banks and Financial Institutions to make finances and money easier for all.
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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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