A few days ago, RadPad shut down rent payments and processing, and a lot of people might be looking for alternatives. Plastiq immediately responded with a new promotion, which offers a reduced payment fee with multiple scheduled payments. Through this promotion, which is available until the end of October, you can make rent payments with cards for as little as a 1.75% fee.
Cozy is a rental property management company, and a few of my friends’ landlords use it. Landlords can create an account, which offers electronic leases and listings. Tenants, in turn, can receive rent reminders and pay rent online. Cozy already accepts payment via credit card, which carries a fee, imposed on the tenant. But it looks like they are looking to expand the rent payment feature, for renters whose landlords are not on Cozy.
The “Cozy Pay” feature was announced on their blog, and became aware to us via a company representative. According to my friends who use the service, they currently charge a 2.75% fee for any credit card payment. That’s higher than what competitor Plastiq offers, even without a promotion. Cozy’s main draw is that they offer a “renter’s profile,” which can be shared to your landlord anytime. That’s a nice feature, but you can easily look up your payment history in Plastiq.
Cozy is definitely not the only property management company on the market. There is also Lovely and RentMoola, to name a few. RentMoola, for example, also accepts credit card payments (with a 2.99% fee), but only for properties that are managed through the website. There are also other rent payment companies that don’t require your landlord to be onboard, like RentShare (2.99% fee).
Plastiq is by far the cheapest, but they are not resting on their laurels either. They have been running timely, aggressive promotions, and actively reaching out to users about getting their landlords onboard. (I got three emails about that just last month) By getting landlords to set up a profile and checking account, Plastiq can reduce the cost of printing and mailing checks to individual payees. In a way, they are doing the opposite of what Cozy Pay will.
Cozy is expanding their service via Cozy Pay, which is due to come out “soon.” With their expansion, Cozy is stepping into the Plastiq boundaries. But I think in order to be competitive, they will have to offer a bit more than just a renter’s profile. I’ll definitely keep an eye out for the launch!