![]() ![]() While you can track your payments manually in a rental spreadsheet this process is unnecessarily time-consuming and prone to errors.Īdditionally, Zelle lacks the functionality to set up automatic late fees or prevent partial payments from tenants facing eviction. With the 1099 requirement changing the IRS will require landlordds to report rental income collected via payment apps exceeding a threshold of $600, compared to the historical $20,000 historically. Firstly, Zelle does not provide 1099-K forms or report transactions exceeding $600, which may cause issues when reporting rental income to the IRS. Using Zelle for Rent CollectionĪlthough Zelle offers convenience, it’s not designed for rent collection and as such it's crucial to understand its limitations. On top of this, while landlords can request rent payments via Zelle, automatic and recurring payments can only be established if the tenant's bank supports this feature. Zelle doesn’t partner with all banks or credit unions, and in such cases where it’s not supported the weekly sending limit is $500. However, it’s ease of use as a rent collection tool is primarily determined by its availability. However, it's important to note that transfer limits are in place, usually around $1,000 per day and $5,000 per month, subject to your specific bank's policies. Plus, sending and receiving money through Zelle incurs no additional charges. Zelle offers fast payment processing times with transferred funds instantly accessible in your account, although it may take approximately one business day for the transaction to fully clear. There are a couple of key benefits to using Zelle for payments. While its primary purpose revolves around seamless money exchanges among friends, family, and trusted individuals, it can also be used for online rent collection. Zelle functions as a payment platform that facilitates fee-free money transfers between bank accounts. ![]()
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