Introduction: Finding the Right Payment Solution for Rent Collection
When it comes to collecting rent from tenants, landlords today have more digital tools than ever before. Among the most popular are Cash App and Square, two services from Block, Inc. While both offer digital payment solutions, they serve slightly different purposes. If you're a landlord or property manager wondering which to use, this guide will help you compare features, fees, and suitability for rent collection. Follow this link to explore the topic in more depth on TenantCloud’s official blog.
Cash App: A Peer-to-Peer Powerhouse
Cash App was originally created as a peer-to-peer payment service, allowing users to send and receive money quickly using their phone number or $Cashtag. It’s incredibly user-friendly and commonly used among younger tenants.
For landlords, Cash App offers convenience. Payments are sent instantly, and users can opt for standard bank transfers or pay a small fee for instant cash-out. The ability to accept rent payments directly from a smartphone makes it ideal for smaller landlords or informal agreements.
However, Cash App was not designed with rent collection in mind. It lacks some of the more advanced accounting and invoicing tools that landlords may require, which brings us to the next option—Square.
Square: Built for Business
Square is a more robust platform aimed at small businesses, including landlords and property managers. Unlike Cash App, Square offers full invoicing, recurring billing, customer tracking, and detailed transaction reporting.
Landlords can send professional invoices with payment reminders and accept payments via credit card, ACH transfers, or even mobile card readers. Square's platform makes it easier to manage multiple tenants and units in one place. It also integrates well with bookkeeping software, which is valuable during tax season.
Fee Comparison: What Does It Cost?
When evaluating Cash App vs. Square, fees are a major factor:
Cash App charges 1.5% for instant transfers but is otherwise free for standard transactions.
Square charges around 2.6% + 10¢ per card transaction, or 1% for ACH transfers with a $1 minimum.
While Cash App may appear more affordable, Square's features could justify the additional costs—especially for landlords managing multiple properties.
Security and Fraud Protection
Security is essential when handling financial transactions. Both Cash App and Square use encryption and two-factor authentication to protect accounts. However, Square offers more advanced fraud monitoring tools, business-level customer service, and chargeback protection.
Cash App, on the other hand, provides limited dispute resolution, and its peer-to-peer nature means you may be more vulnerable to mistaken payments or fraudulent transactions. For landlords who prefer secure, traceable payments, Square is generally the safer bet.
Integration and Business Tools
Square’s greatest strength lies in its ecosystem. Landlords can use Square for scheduling, inventory (if managing short-term rentals), digital contracts, and integrations with QuickBooks or other accounting software. This level of functionality makes it ideal for professional landlords and property managers.
Cash App doesn’t offer the same level of integration. It’s best suited for simple transactions, such as collecting rent from a roommate or a single-unit tenant. If you run multiple units or require automation and organization, Square clearly leads.
Tenant Experience and Accessibility
From a tenant’s perspective, Cash App may be more accessible. Many tenants already have the app installed and prefer its informal, fast-paced style. Square requires more formality, which might deter some tenants who are less tech-savvy or prefer simpler payment methods.
That said, Square offers multiple payment methods, including credit cards, which can be beneficial for tenants who don’t use Cash App or prefer not to link their bank accounts directly.
Which One Should You Choose?
If you’re a part-time landlord managing one or two properties and dealing with tenants you know personally, Cash App may be sufficient. It's quick, easy, and free for most transactions.
But if you're a professional landlord or property manager who wants to streamline rent collection, generate invoices, and maintain clear financial records, Square is the better choice. It offers more tools to manage your business professionally and securely.
Cash App vs. Square—The Verdict
Both Cash App and Square offer powerful payment tools, but they cater to different needs. For quick, informal rent payments, Cash App is a convenient solution. For structured, professional rent collection, Square provides better features and scalability.
Carefully consider your rental portfolio, tenant base, and long-term goals when choosing between these two platforms. Ultimately, the best solution is the one that aligns with your property management style and financial strategy.