![josh-wilburne-rdJXlCdRVaQ-unsplash.jpeg](https://www.offermarket.us/uploads/josh_wilburne_rd_J_Xl_Cd_R_Va_Q_unsplash_b160c43f11.jpeg)

If you own rental property, collecting rent every month from your tenants is a top priority. The traditional rent collection method has always been to send a rent check. From a tenant’s perspective, writing a personal check once a month is straightforward. However, if you are a landlord trying to eke out a living from a few rental units, processing rent checks is a clumsy, time-consuming process. Accepting rent payments by check can also severely impact your cash flow. 

 

But surely, there must be better ways of running a successful rental business than collecting rent checks. After all, most consumers use the internet for banking and shopping online. Also, digital wallets like PayPal, Venmo, and Zelle are popular for splitting bills or making electronic payments. There is also a growing trend among professional landlords to use mobile payment apps specifically designed for rent collection. 

 

Are you a landlord looking to save time and make rent collection more straightforward? Do you want to find out about ways to collect rent better suited to the modern renter in a digital age? If so, please continue reading to find solutions to your greatest pain point — collecting rent on time. 

 

## Why Look for Alternatives to Rent Checks

 

Let’s face it — it takes a lot of your precious time to process a rent check. Did you know that it can take up to seven days from when a tenant writes and mails the check until the cash is available in your bank account? Would you not prefer to get rental money in your bank account in a matter of hours rather than days? 

 

Here is a typical timeframe of how long it takes to process a tenant’s rent check. First, the tenant writes and mails the check. This usually takes up to three days to arrive unless there is a longer wait due to postal delays. After receiving the check, you must drive to the bank, stand in line, and deposit the check. Then you must wait for one to three business days for the check to clear. 

 

Additionally, since October 2021, many landlords may have to wait even longer for checks to arrive. [CBS News reported](https://www.cbsnews.com/news/mail-delivery-slower-usps-october-1/) that changes in the United States Postal Service would result in four out of ten first-class mail items having slower delivery times. In some cases, this means your tenants may incur late fees because their personal check was late.

 

Here’s a list of compelling reasons to avoid collecting rental payments by check:

 

- Checks can bounce
- Rent checks can get lost in the post 
- Paper check payments put you at risk of identity theft
- You must manually record rent payments, meaning that it’s easy to make mistakes

 

## The Challenge of Using Rent Check Alternatives

 

One of the biggest challenges [successful rental property owners face](https://www.offermarket.us/blog) when switching to rent check alternatives is convincing their tenants. After all, sending a check is straightforward for tenants. It’s landlords that are burdened with the hassle of processing paper checks

 

Surprisingly, paying rent by check and cash still seems the most popular method. For example, the [Federal Reserve Bank of Boston](https://www.bostonfed.org/publications/research-data-report/2016/how-do-people-pay-rent.aspx) reported that 42 percent of renters still mail a monthly rent check. In addition, a surprising 22 percent of landlords continue to accept cash payments. The study found that a meager 8 percent of tenants paid rent using an electronic method.

 

## The Best Alternatives to Collecting Rent by Paper Check

 

As a property owner running a profitable business, you must be in control of rent payments. This means that you can specify acceptable ways for your tenant to pay rent. In most states, you must provide at least two methods of payment. 

 

Using a mobile payment app is the best alternative to a paper check. Not only is it convenient for you as a landlord, but your tenants are probably already using one to make online payments. Also, you have an electronic “paper trail,” which is more secure than keeping paper documents. However, some digital wallets or “peer-to-peer” payment methods are better than others for rent collection. 

 

Here are the pros and cons of some popular payment apps, including some designed specifically for landlords. 

 

## PayPal — Rent Check Alternative

 

PayPal is one of the most well-known digital wallets, and many landlords use this as a rent check alternative. Tenants can pay rent directly into a landlord’s bank account, or you can request a rent payment. 

 

However, [PayPal is a poor option](https://blog.rentdrop.io/alternatives-to-paypal-for-collecting-rent-online) for collecting rent because there is no payment protection. Additionally, you can’t block partial payments. And PayPal can sometimes freeze a tenant’s accounts if they suspect any questionable activity. Finally, PayPal has monthly fees for using a business account.

 

## Zelle for Rent Payments

 

Zelle is a popular mobile application that lets users quickly transfer funds. A benefit is that the money appears directly in your bank account if you sign up to Zelle. And there are no transaction fees. 

 

But there are cons to using Zelle for collecting rent. For example, it’s possible for a tenant to pay someone else accidentally instead of the intended recipient. And it’s hard to resolve disputes if you use this service. In addition, like PayPal, the lack of payment blocking and purchase protection means that Zelle is not great for online rent payments. 

 

## Buildium — Property Management App

 

Buildium is a property management app popular with many landlords. The app streamlines rent collection, sends reminders, calculates late fees, lists vacancies, and allows tenants to request maintenance visits. It is also possible for landlords to post vacant properties on sites such as Zillow and Trulia. Landlords can also accept payments, send out invoices, and process security deposits.

 

One thing to consider with Buildium is that it’s expensive. So, if you only manage a few rental units, it’s not a cost-effect alternative to rent checks. In addition, for some users, the plethora of features makes it challenging to use. 

 

## Rentdrop — Mobile Rent Collection App

 

[Rentdrop](https://www.rentdrop.io/) is a straightforward rent collection app, allowing landlords and tenants to collect rent online for free. Rentdrop has some handy features for landlords like scheduling automatic payments, processing security deposits, tracking rent payments, and sending rent reminders. In addition, the convenient app allows roommates to split the rent, and landlords can also offer tenants flexible rent payments. 

 

Rentdrop lacks some of the features of expensive property management apps. But the service is free for landlords and tenants to use and is an excellent alternative to collecting rent checks. 

 

## PayRent — Property Management Software

 

PayRent is a mobile application that helps landlords manage their properties. Landlords can use the app in place of rent checks. The app makes it easy to track a tenant’s rental payment history. Also, tenants can pay rent using either a debit card, credit card, or checking account with an e-check. 

 

However, there are some drawbacks to using PayRent. For example, you must pay transaction fees, which can cost up to $50 per month to use.

 

## Alternatives to Rent Checks — A Takeaway

 

Sending a paper check is fast becoming a part of history. So if you run a successful business, there are many reasons to stop accepting rent checks and convince your tenants to use an alternative method. Not only are digital payments more secure, but they will also save you time and money and help free up valuable resources.

We are all used to paying our rent using cash or check, but this its 2022 and technology has moved forward and made rent payments much much easier and streamlined

Rent Check Alternatives — 5 Superior Ways to Collect Rent

**Last updated:** February 6, 2024

 

## What is a Certificate of Good Standing?

 

A Certificate of Good Standing is a document issued by the state in which your business is formed which certifies, as of the date issued, that your business has submitted all required documents, fees and filings.

 

When you obtain a Certificate of Good Standing, it means your business is duly formed and authorized to do business in the state, and that it is in compliance with certain statutory requirements. It essentially confirms that the entity is in good standing with the state authorities.

 

A Certificate of Good Standing is commonly required for business transactions such as obtaining financing, entering into contracts, or expanding operations to other states. Commercial, business purpose lenders who provide loans to business entities (typically LLC or corporation) will commonly require this document in as a standard underwriting guideline. It is required in order to obtain a [DSCR loan](https://www.offermarket.us/blog/dscr-loan) or [fix and flip loan](https://www.offermarket.us/blog/fix-and-flip-loans) from OfferMarket. 

 

All states provide this certificate upon request and satisfaction of requirements to be in good standing. A common source of confusion is the name that each state uses -- *Certificate of Good Standing*, *Certificate of Existence*, *Certificate of Status*, and *Certificate of Fact* are used among different states.

 

Depending on the state, the cost and timeline to receive your Certificate of Good Standing will vary.

 

| **State** 	| **Abbreviation** 	| **Official Document Name** 	| **Cost** 	| **Website** 	|
|---	|---	|---	|---	|---	|
| Alabama 	| AL 	| Certificate of Existence 	| $25 	| [Alabama Secretary of State](https://www.alabamainteractive.org/sos_eCertificate/welcome.action) 	|
| Alaska 	| AK 	| Certificate of Compliance 	| $10 	| [Alaska Division of Corporations, Business & Professional Licensing](https://www.commerce.alaska.gov/web/cbpl/) 	|
| Arizona 	| AZ 	| Certificate of Good Standing 	| $45 	| [Arizona Corporation Commission](https://ecorp.azcc.gov/) 	|
| Arkansas 	| AR 	| Certificate of Good Standing 	| $25 	| [Arkansas Secretary of State](https://www.sos.arkansas.gov/corps/) 	|
| California 	| CA 	| Certificate of Good Standing 	| $5 	| [California Secretary of State](https://www.sos.ca.gov/) 	|
| Colorado 	| CO 	| Certificate of Good Standing 	| $10 	| [Colorado Secretary of State](https://www.sos.state.co.us/) 	|
| Connecticut 	| CT 	| Certificate of Legal Existence 	| $50 	| [Connecticut Secretary of the State](https://portal.ct.gov/sots) 	|
| Delaware 	| DE 	| Certificate of Good Standing 	| $50 	| [Delaware Division of Corporations](https://corp.delaware.gov/) 	|
| Florida 	| FL 	| Certificate of Status 	| $8.75 	| [Florida Department of State](https://dos.myflorida.com/sunbiz/) 	|
| Georgia 	| GA 	| Certificate of Existence 	| $10 	| [Georgia Secretary of State](https://ecorp.sos.ga.gov/) 	|
| Hawaii 	| HI 	| Certificate of Good Standing 	| $7.50 	| [Hawaii Business Express](https://portal.ehawaii.gov/business/) 	|
| Idaho 	| ID 	| Certificate of Good Standing 	| $10 	| [Idaho Secretary of State](https://sos.idaho.gov/) 	|
| Illinois 	| IL 	| Certificate of Good Standing 	| $50 	| [Illinois Secretary of State](https://www.cyberdriveillinois.com/) 	|
| Indiana 	| IN 	| Certificate of Existence 	| $10 	| [Indiana Secretary of State](https://www.in.gov/sos/business/index.htm) 	|
| Iowa 	| IA 	| Certificate of Status 	| $5 	| [Iowa Secretary of State](https://sos.iowa.gov/) 	|
| Kansas 	| KS 	| Certificate of Good Standing 	| $15 	| [Kansas Secretary of State](https://www.sos.ks.gov/) 	|
| Kentucky 	| KY 	| Certificate of Existence 	| $10 	| [Kentucky Secretary of State](https://www.sos.ky.gov/) 	|
| Louisiana 	| LA 	| Certificate of Good Standing 	| $30 	| [Louisiana Secretary of State](https://www.sos.la.gov/) 	|
| Maine 	| ME 	| Certificate of Good Standing 	| $30 	| [Maine Bureau of Corporations, Elections & Commissions](https://www.maine.gov/sos/cec/) 	|
| Maryland 	| MD 	| Certificate of Status 	| $20 	| [Maryland Department of Assessments and Taxation](https://egov.maryland.gov/businessexpress) 	|
| Massachusetts 	| MA 	| Certificate of Good Standing 	| $15 	| [Massachusetts Secretary of the Commonwealth](https://www.sec.state.ma.us/cor/) 	|
| Michigan 	| MI 	| Certificate of Good Standing 	| $10 	| [Michigan Department of Licensing and Regulatory Affairs](https://www.michigan.gov/lara) 	|
| Minnesota 	| MN 	| Certificate of Good Standing 	| $50 	| [Minnesota Secretary of State](https://www.sos.state.mn.us/) 	|
| Mississippi 	| MS 	| Certificate of Good Standing 	| $27 	| [Mississippi Secretary of State](https://www.sos.ms.gov/) 	|
| Missouri 	| MO 	| Certificate of Good Standing 	| $10 	| [Missouri Secretary of State](https://www.sos.mo.gov/) 	|
| Montana 	| MT 	| Certificate of Good Standing 	| $10 	| [Montana Secretary of State](https://sosmt.gov/) 	|
| Nebraska 	| NE 	| Certificate of Good Standing 	| $10 	| [Nebraska Secretary of State](https://sos.nebraska.gov/) 	|
| Nevada 	| NV 	| Certificate of Good Standing 	| $50 	| [Nevada Secretary of State](https://www.nvsos.gov/) 	|
| New Hampshire 	| NH 	| Certificate of Good Standing 	| $25 	| [New Hampshire Secretary of State](https://sos.nh.gov/) 	|
| New Jersey 	| NJ 	| Certificate of Good Standing 	| $25 	| [New Jersey Division of Revenue and Enterprise Services](https://www.nj.gov/treasury/revenue/) 	|
| New Mexico 	| NM 	| Certificate of Good Standing 	| $25 	| [New Mexico Secretary of State](https://www.sos.state.nm.us/) 	|
| New York 	| NY 	| Certificate of Good Standing 	| $25 	| [New York Department of State](https://www.dos.ny.gov/) 	|
| North Carolina 	| NC 	| Certificate of Existence 	| $10 	| [North Carolina Secretary of State](https://www.sosnc.gov/) 	|
| North Dakota 	| ND 	| Certificate of Good Standing 	| $10 	| [North Dakota Secretary of State](https://sos.nd.gov/) 	|
| Ohio 	| OH 	| Certificate of Good Standing 	| $5 	| [Ohio Secretary of State](https://www.sos.state.oh.us/) 	|
| Oklahoma 	| OK 	| Certificate of Existence 	| $20 	| [Oklahoma Secretary of State](https://www.sos.ok.gov/) 	|
| Oregon 	| OR 	| Certificate of Good Standing 	| $10 	| [Oregon Secretary of State](https://sos.oregon.gov/) 	|
| Pennsylvania 	| PA 	| Certificate of Status 	| $30 	| [Pennsylvania Department of State](https://www.dos.pa.gov/) 	|
| Rhode Island 	| RI 	| Certificate of Good Standing 	| $50 	| [Rhode Island Secretary of State](https://www.sos.ri.gov/) 	|
| South Carolina 	| SC 	| Certificate of Existence 	| $10 	| [South Carolina Secretary of State](https://www.sos.sc.gov/) 	|
| South Dakota 	| SD 	| Certificate of Good Standing 	| $20 	| [South Dakota Secretary of State](https://sdsos.gov/) 	|
| Tennessee 	| TN 	| Certificate of Existence 	| $20 	| [Tennessee Secretary of State](https://sos.tn.gov/) 	|
| Texas 	| TX 	| Certificate of Good Standing 	| $5 	| [Texas Secretary of State](https://www.sos.texas.gov/) 	|
| Utah 	| UT 	| Certificate of Good Standing 	| $12 	| [Utah Division of Corporations and Commercial Code](https://corporations.utah.gov/) 	|
| Vermont 	| VT 	| Certificate of Good Standing 	| $25 	| [Vermont Secretary of State](https://sos.vermont.gov/) 	|
| Virginia 	| VA 	| Certificate of Fact of Existence 	| $10 	| [Virginia State Corporation Commission](https://cis.scc.virginia.gov/) 	|
| Washington 	| WA 	| Certificate of Existence 	| $20 	| [Washington Secretary of State](https://www.sos.wa.gov/) 	|
| West Virginia 	| WV 	| Certificate of Good Standing 	| $10 	| [West Virginia Secretary of State](https://business.wv.gov/Pages/default.aspx) 	|
| Wisconsin 	| WI 	| Certificate of Status 	| $10 	| [Wisconsin Department of Financial Institutions](https://www.wdfi.org/) 	|
| Wyoming 	| WY 	| Certificate of Good Standing 	| $5 	| [Wyoming Secretary of State](https://sos.wyo.gov/) 	|
| Washington, D.C. 	| DC 	| Certificate of Good Standing 	| $55 	| [District of Columbia Department of Consumer and Regulatory Affairs](https://dcra.dc.gov/) 	|

 

## Certificate of Existence

 

Several states refer to their certificate of good standing as a "Certificate of Existence".

 

## Certificate of Fact

 

Texas is one of the only states that calls their certificate of good standing a "Certificate of Fact".

 

## Certificate of Status

 

Several states, including Maryland, refer to their certificate of good standing as a "Certificate of Status".

A Certificate of Good Standing is a document provided by the state in which your business is formed that certifies your business is not delinquent on any taxes, fees or filings.

large_Certificate of Good Standing.png

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Certificate of Good Standing.png

Certificate of Good Standing

<div style="width:100%;"><iframe width="100%" height="315" src="https://www.youtube.com/embed/anbSNLi1Y7w" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>

 
 

## Buyers Pay Buyer's Agent Commission In Off Market Deals

 

Unlike on-market MLS transactions where the seller pays the buyer's agent commission (typically 2.5% - 3%), the standard in off market and wholesale real estate transactions is for the the buyer to pay their agent's commission.

 

There are a few reasons why buyers pay their buyer's agent commission:

 

## The Deal Is Not Priced For The Seller To Pay A Buyer's Agent

 

Most off market deals for investment properties -- properties in poor condition, distressed sellers, leased rentals -- are not priced with the expectation that the seller or wholesaler will be paying a buyer's agent's commission. Why? Because most off market deals do not involve buyer's agents who ask for the seller to pay their commission. Off market deals either do not involve a buyer's agent at all, or they involve an investor-friendly buyer's agent who understands that in an off market transaction their client (the buyer) pays their commission. 

 

If you want the seller to pay your commission, then add your commission on top by increasing your offer price.

 

## Avoid Unnecessary Friction

 

Many single family and small multifamily investors deal direct and do not have agent representation. Asking a seller or a wholesaler to figure out how to pay the buyer's agent commission is an added complexifier and reduces the chance the agent-represented buyer will have their offer accepted.

 

### Buyer's Agent Off Market Faceplam Moments

 

Aside from the commission component, agents who do not have off market deal experience are known to add significant friction to the deal. One example is pushing back when the wholesaler's contract specifies a title company but the agent wants to try to change the title company. 🤦

 

Another example is when the agent gets upset that the wholesaler is making more on the deal than they are, and then tries to reduce the wholesaler's assignment fee. This is not the way to get your client a new property. 🤦‍♀️

 

The most cringeworthy example is perhaps when the buyer's agent contacts the seller or wholesaler and asks if they pay buyer's agent commission and then tells them that their commission is 4% (standard agent commission is 2 - 3% off market and on market). Going one step further, when they are told that they should have their buyer pay their commission or add it to their client's offer price, they steer their client away from the deal. This is an incredibly common occurrence and fascinating exposé of the failings of the current agency model and rampant breach of fiduciary duty. 🤦🏽

 

A final example is when agents don't understand wholesale real estate and assignment of contract. If this applies to you or your agent, read [Wholesale Real Estate 101](https://www.offermarket.us/guides/wholesale-real-estate-101). 🤦🏼‍♀️

 

### Agents For Flippers Get The Flip Listing

 

Fix and flip buyers typically have an agreement -- implied or explicit -- with their buyer's agent that the agent will be the listing agent when the rehab is completed and the property is ready to be sold on market. That commission check will be higher, so the agent doesn't need to rock the boat trying to get the seller to pay their commission in the off market deal.

 

## Who Pays Agent Commission On OfferMarket?

 

Off market listings on the OfferMarket investment property marketplace are designed to accommodate buyer agents. Buyer's agents submit offers directly on the OfferMarket listing and specify how they would like their commission to be paid. To avoid unnecessary friction that can lose the deal for a buyer, it is recommended that the buyer pays the buyer's agent's commission.

 

In an off market transaction, the buyer is expected to pay their agent for bringing them the deal. But we recognize that it's open for negotiation.

 

Depending on the seller's motivation, net proceeds sensitivity, and buyer demand for the listing (i.e. multiple competitive offers received), the seller may reject a request from the buyer/buyer's agent for the buyer's agent to be paid by the seller. The seller may request a lower commission, since off market transactions typically have lower commissions to the buyer's agent (2% instead of 2.5% or 3%). The seller may counter offer and request a higher offer price in order for the seller to justify paying the buyer's agent commission.

 

## Buyer Agents That Understand Off Market Listings Add More Value For Their Clients

 

Off market, wholesale and For Sale By Owner (FSBO) real estate transactions are typically not priced for the seller and assignor (wholesaler) to pay buyer agent commission. Unless the seller explicitly states in their listing that they are offering a 2% or 3% commission to buyer's agents, it should not be expected of the seller and/or assignor to pay the buyer's agent commission for an offer at asking price. 

 

If you're an agent representing a buyer in an off market transaction, there's no need to worry, there's always a way to make the deal work for all parties involved.

 

The following are the most common arrangements to ensure the buyer's agent is fairly compensated:

 

1. Buyer pays their agent a 2% commission (most common for wholesale, distressed properties)
2. Buyer increases the purchase price in their offer and asks for the seller to pay a 2% to 3% commission (most common for wholesale, distressed properties)
3. Seller happily accepts offer at asking price and pays fair commission to buyer's agent (most common for [FSBO](https://www.offermarket.us/real-estate-glossary/fsbo) and [OfferMarket Exclusive Listings](https://www.offermarket.us/listings).

 

Investor-focused buyer's agents are easy to work with and get an off-market deal done quickly. Buyer's agents who are not familiar or experienced with off-market transactions frequently introduce major friction which derails deals and causes unnecessary effort and stress for all parties. If you are an agent representing a buyer in an off-market transaction, it is important that you reset your expectations according to the norms of off-market transactions and adapt to get the deal done for your buyer with terms that work for everyone.

Buyer's agents (and buyers represented by agents) that understand off-market, wholesale and FSBO listings add more value for their clients.

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Who pays the buyer's agent commission in an off market, wholesale transaction?

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket also provides DSCR rental loans, bridge loans, hard money, fix & flip, rehab, ground up construction loans.

Rental Loans

#### What does FSBO mean?

 

FSBO means For Sale By Owner. This is a real estate listing format where the property owner has chosen to not be represented by a listing agent or realtor. 

 

#### Why sell For Sale By Owner?

 

Sellers decide to sell For Sale By Owner when they want to avoid the traditional 5% to 6% commission charged by the listing broker and shared with the buyer's agent.

 

#### Should I sell For Sale By Owner?

 

Selling your house by owner is not easy but if you do it properly you can save thousands of dollars. In order to sell your house successfully by owner, you need to achieve the following:

 

✅ Buyer awareness 
✅ Buyer competition 

 

Without buyer awareness and competition, you will not be able to successfully generate a purchase price close to what you would be offered when you list "on-market" with an agent.

 

That's where OfferMarket comes in. With OfferMarket you can [create your free listing](https://www.offermarket.us/sell) on our marketplace and receive multiple competitive offers, AS IS, commission free.

 

#### Related guides

 

- [How To Sell A House For Sale By Owner](https://www.offermarket.us/guides/how-to-sell-a-house-by-owner)
- [How To Sell Your House Fast Without An Agent](https://www.offermarket.us/guides/how-to-sell-your-house-fast-without-an-agent)

FSBO means For Sale By Owner. These are real estate listings where a listing agent or realtor is not involved.

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