How to collect rent online from tenants in India

What are the ways to collect rent from tenants?

Most landlords in India use one of seven methods. They differ less in cost than in how much work they leave you: chasing, matching payments to tenants and proving later who paid what.

On credit-card rent apps: the tenant pays a convenience fee, often 1–2% plus GST, and the app routes the money to your bank account through its payment provider, usually a day or two later. After the RBI tightened payment aggregator rules in September 2025, PhonePe, Paytm and CRED stopped rent payments by card, as Business Standard reported. Availability and fees change often, so check the app before you suggest it to a tenant.

Rent collection apps are a different thing: they help you remind, track and record, and the better ones do not touch your money. We compare them in best rent collection apps in India.

Why UPI works best for most landlords

• Your tenants already use it: Google Pay, PhonePe, Paytm or their bank's app.
• There is no fee for either of you on a person-to-person payment.
• Money reaches your bank account in seconds, on Sundays and holidays too.
• Every payment has a UTR (transaction reference) number, so there is a record on both sides.
• You only share a UPI ID, not your account number and IFSC.

How to set up UPI rent collection, step by step

1. 1

   Keep rent apart from your other money

   The cleanest option is a separate savings account used only for rent. Your statement then shows rent and nothing else. If that is too much, at least create a separate UPI ID for rent; most UPI apps let you add more than one ID. A separate ID alone won't separate your bank statement, though, so the account is better.

2. 2

   Fix the amount, due date and payment method in the agreement

   Write the monthly rent, maintenance (if separate), the due date (for example "on or before the 5th of every month") and your UPI ID or account into the rent agreement. A clear due date is what every later reminder points back to. See our rent agreement format.

3. 3

   Share your UPI ID in writing

   Send the UPI ID by WhatsApp and ask the tenant to save it as a contact. Ask them to add a note to each payment, such as "Rent Oct 2026 Flat 302", so you can match payments at a glance.

4. 4

   Remind before the due date

   Send a short reminder three days before rent is due, with the amount and the UPI ID. Copy one from our rent reminder message templates.

5. 5

   Confirm every payment with a receipt

   When the money arrives, check it in your bank app, not just the tenant's screenshot, and send a receipt the same day. Tenants need receipts to claim HRA, and you need them if there is ever a dispute. Use our rent receipt format.

6. 6

   Reconcile once a month

   After the due date, tick off each tenant against your bank statement using the UTR number. Note any cash payments too. A rent tracker template keeps this in one sheet.

7. 7

   Follow up the same way every month

   Remind on the due date, again three days later, and firmly after a week. Consistency matters more than tone: tenants pay on time when they know the reminders will come.

How to track who has paid

With two or three tenants, a bank statement and a notebook are enough. Beyond that, matching UPI credits to names takes real time each month, especially when tenants pay from a spouse's account or a different UPI app. This is where most landlords start to lose track.

UPI limits and other things to know

• ₹1 lakh per transaction. Person-to-person UPI payments, which is what rent to your UPI ID is, are capped at ₹1 lakh per transaction. When NPCI raised limits for some merchant categories in September 2025, person-to-person payments stayed at ₹1 lakh (Business Today). The RBI had confirmed the same cap in April 2025 (MediaNama).
• Your bank can set lower limits. Banks may cap the amount or the number of UPI payments per day below NPCI's limit. If a tenant's payment fails, ask them to check their bank's UPI limit.
• Rent above ₹1 lakh. Ask the tenant to pay by NEFT or RTGS to your account instead. Agree this in writing so a split payment is never mistaken for a short payment.
• Never enter your UPI PIN to receive money. A UPI PIN is only for paying. Anyone who sends you a "collect request" that asks for your PIN is trying to take money, not give it.
• Check the bank app, not the screenshot. Screenshots can be edited. Match the UTR number in your own bank app before you send a receipt.
• Tax doesn't change with the method. Rent is taxable income whether it comes in cash, by cheque or through UPI. NRI owners should read how to manage property in India from abroad.

Should you still accept cash?

Some tenants, especially older tenants and PG occupants, will want to pay in cash. You can accept it, but write a receipt on the spot and note it in your tracker the same day. Cash without a receipt is the most common source of "I already paid" disputes. In Domvio, you log a cash payment with one tap or by messaging the bot "paid Ravi", and a PDF receipt goes to the tenant on WhatsApp.

Collecting rent from PG occupants

A PG has many small payments on the same few days. Put a printed UPI QR code on the notice board, ask every occupant to write their room and bed number in the payment note, and send the screenshot to one WhatsApp number. Keep a list of beds, not just names, so a vacant bed never looks like a missing payment. Domvio sets up rooms and beds (single, double or triple sharing) and tracks rent for each bed; see PG management software.

Frequently asked questions