Given that it’s one of the most popular payment platforms out there, it’s understandable to think you can use Venmo for rent payments. Most renters likely already use Venmo, and it’s straightforward to figure out, perfect for even the least tech-savvy among us.
Well, we hate to disappoint any die-hard Venmo fans, but unfortunately, Venmo is less than ideal for rent payments. While you can easily use Venmo to pay a friend for lunch, sending and receiving large sums of money can lead to plenty of headaches for landlords.
Here, we’ll go over some of the pros and cons of using Venmo for rent collection and explore why the platform isn’t exactly perfect for receiving rent payments. And don’t worry, we’ll also explore some alternatives that will allow you to collect rent without a hitch.
What is Venmo, and how does it work for rent payments?
Launched in 2009 and used by almost 90 million people, Venmo is one of the best-known digital payment platforms. Their peer-to-peer (P2P) payment technology enables users to send money quickly back and forth with only their contact information.
Landlords who collect rent via Venmo first need to obtain their tenants’ Venmo usernames. You can request payments, or your tenant can pay you in advance. After you receive the payment, it’s simply a matter of transferring the money from Venmo to your bank account.
It’s worth noting that Venmo treats rent payments as business transactions, so landlords must upgrade to a business account and pay additional fees. If you try to skirt the rules and collect rent without a business account, Venmo might suspend or even deactivate your account.
Is it legal for landlords to accept Venmo for rent payments?
As of 2025, no states have prohibited landlords from accepting rent payments via Venmo. As long as you offer additional payment options for your tenants (as required by law) and upgrade to the business account we mentioned, you shouldn’t encounter any legal issues.
Just because you can accept rent through Venmo, though, doesn’t mean you should. Collecting rent on Venmo carries plenty of risks for both landlords and tenants, and because it’s not purpose-built for rent collection, the platform also lacks key features integral to the process.
Benefits of Using Venmo for Rent Payments
Though Venmo is far from an ideal solution for rent collection, there are a few upsides to using it. Here’s what to know:
Instant Transfers and Fast Access to Funds
Venmo is one of the fastest options for landlords to receive digital rent payments. After your tenant pays, you can typically transfer the funds to your bank account within a few business days. You can also pay a small fee for instant transfers.
This eliminates lengthy processing delays and makes Venmo an attractive option for landlords who need cash on hand quickly. Plus, Venmo transfers are instant, so you can pay others on the platform right away if necessary.
Convenient for Landlords and Tenants Who Already Use Venmo
As we’ve mentioned, most tenants (and likely most landlords) will already have and use a Venmo account. This makes it highly convenient for landlords to receive rent on the go, and tenants are often already familiar with the Venmo payment process.
Landlords won’t have to waste time explaining the ins and outs of the program to their renters, and tenants will have little to no excuse for late rent payments. There’s also the fact that Venmo enables tenants to pay rent in mere moments.
No Fees for Standard Transfers
Though landlords can choose to receive rent payments instantly for a small fee, Venmo does not charge an additional fee for standard transfers. These typically reach your bank account within 1 to 3 business days, so processing is still fast, even if it’s not instantaneous.
Now, this doesn’t mean landlords can accept rent on Venmo for free (after all, there’s that business account to consider). But your renters won’t have to fork over additional money to pay rent, which might encourage them to adopt your payment process without pushback.
Drawbacks and Risks of Using Venmo for Rent Payments
Before you get too excited about collecting rent on Venmo, let’s take a look at some of the downsides. Because the platform isn’t landlord-specific, you’ll have to deal with issues like:
Limited Payment Protection
Venmo offers limited payment dispute options, which could result in lost income for landlords. Let’s say one of your tenants makes a typo and accidentally pays the wrong Venmo user. Your renter won’t be able to get that money back, and neither will you.
This is one of the main drawbacks of using Venmo for rent collection, and it keeps many people from trusting Venmo with large sums of money. So, if you choose to accept rent via Venmo, be aware that your renters may have some hesitations.
Transaction Limits Minimize Rent-Collection Capabilities
Venmo often restricts large transactions, which complicates regular rent charges. If your tenant has an unverified Venmo account, you may only be able to collect $299.99 per week from them. Though these numbers go up for verified Venmo users, this can lead to major headaches.
To cover the full rent amount, your tenant may need to split their payment into multiple payments. Needless to say, this can throw a massive wrench into your accounting and payment-tracking systems, not to mention the hassle of depositing multiple payments.
Venmo Doesn’t Have Integrated Accounting & Bookkeeping
Because Venmo is not purpose-built for rent collection, the platform does not offer integrated accounting or bookkeeping tools. As a result, landlords will have to handle all financial tracking outside Venmo, potentially creating more confusion in the collection process.
Since accounting is one of the most crucial tasks landlords face, this can be a considerable inconvenience. You might need to invest in another software solution to make up the difference, which means juggling multiple accounts to handle the different aspects of property management.
Venmo’s Fees to Consider
While Venmo is relatively cheap for landlords to use, it’s certainly not free. At the time of writing, you’ll have to pay 1.9% per transaction plus a flat $0.10 fee to receive rent payments through a Venmo business account.
Though this might not seem like much, imagine losing 1.9% of every rent payment, which could translate into hundreds of dollars in missed income, depending on how much you charge for rent. And while minimal, the $0.10 flat fee is just an extra, unnecessary inconvenience.
Before you start wondering, no, you can’t get around these fees by treating rent as a typical transaction between friends and family. Venmo may suspend or even delete your account, so you can’t avoid the extra costs of accepting rent through the platform.
When Landlords Should Consider Using Venmo to Collect Rent
Though the practice has its drawbacks, landlords could consider Venmo as a viable rent collection option in particular cases, such as:
- Single-tenant situations: If you’re a landlord who rents to just one, trusted tenant
- Non-tech-savvy tenants or landlords: If you or your renters are unable to learn the ins and outs of more complex rent collection software
- Need quick payments: If you require fast, simple payments that you can instantly deposit to your bank account
When Landlords Shouldn’t Use Venmo to Collect Rent
Just as there’s a right time to use Venmo to collect rent, there are certainly plenty of wrong times, too. You should avoid Venmo in these cases:
- Trying to save money: Venmo charges fees for landlords to use, so it’s not as cost-efficient as it may seem
- Handling accounting needs: Venmo does not offer any accounting options, so landlords will need to fill in the gap using other tools
- Need payment protection: Venmo offers limited dispute resolution, so both you and your tenant may be out of luck if they make an incorrect payment
- Your renters don’t already use it: If you’re going to ask tenants to sign up for a new-to-them rent collection tool, you may as well encourage them to try a more robust, purpose-built software
Best Alternatives to Venmo for Accepting Rent Payments
As you’ve likely gathered by now, Venmo is far from your best option to accept rent payments. Luckily, landlords and tenants can benefit from other rent collection tools like these:
TurboTenant
This best-in-market property management software offers a comprehensive suite of features, including rent collection. Landlords can accept payments via ACH, credit card, or debit card, providing tenants with flexibility. TurboTenant also automates regular rent payment reminders and late fee charges for overdue rent.
Starting a TurboTenant account is free, so you can save money while collecting rent quickly and easily. The program also has fully integrated accounting software (for a fee), so you can keep track of rent payments and manage expenses all in the same place.
TenantCloud
Property management software TenantCloud also streamlines and simplifies the rent collection process for landlords. TenantCloud allows for many of the same automation options as TurboTenant, and the program’s highly intuitive user interface makes it a breeze for your renters to get on board.
Speaking of your renters, tenants can opt in to rent reporting, which helps them build good credit with every on-time rent payment. TenantCloud isn’t free for landlords (memberships start at $16.50 per month), but its perks make that price tag worthwhile.
RentRedi
RentRedi’s rent collection is powered by REI Hub, an innovative accounting software designed for landlords. It’s one of the most robust financial tracking tools available, helping thousands of landlords stay on top of their rental income and expenses without hassle.
RentRedi memberships start at $5 per month and let you manage an unlimited number of rental properties in one place. Rent collection comes standard across all membership tiers, so no matter your budget, you’ll be able to accept and track digital rent payments.
Tips for Landlords Accepting Digital Rent Payments
Whether you’ve just started receiving rent online or you’re looking to upgrade your system, everyone can benefit from a few helpful collection tips. Here’s what we recommend:
Address rent payment methods in your lease agreement: Before your new renter moves in, inform them of how you plan to collect rent to prevent confusion about the payment system and ensure compliance with legal regulations.
Keep rental income separate from personal funds: To improve your accounting, never deposit rental income into a personal bank account. Always keep a separate bank account solely for receiving rent payments and covering rental expenses, so you don’t get confused.
Choose rent payment software that syncs with accounting and bookkeeping: In a similar vein, make sure to collect rent using software that offers a full suite of accounting and bookkeeping tools, reducing the risk of errors and the hassle of switching back and forth between different software.
Send automated rent reminders: Automatic rent reminders can reduce the frequency of late payments and help your renters stay on track, and you won’t even have to lift a finger.
Automatically assess late fees if tenants are late paying rent: Though confronting your renters with late fees is never fun, rental management software will do the hard part for you. This can discourage future late payments while protecting your investment.
Is Venmo your best option for digital rent payments?
Using Venmo for rent payments may seem easy and cost-effective, but in the long run, landlords have many better options. With that in mind, you shouldn’t rely on this P2P software for something as important as your rental income.
Instead, landlords should turn to purpose-built rental management software like TurboTenant, which will help you collect rent in full and on time every pay period. These programs integrate seamlessly with the rest of the management process so you can handle everything rental-related in one place.
If you’re ready to take your rent collection strategy to the next level, sign up for a free TurboTenant account today so you can get started. Don’t waste your time on Venmo when you have a much better option to reduce stress and get paid.
