One concern of single-family rental property owners in Forest is how to obtain their rent payments. This is one of the most important decisions a property owner can make. But knowing which way to go can be a challenge. There are different ways available to property owners, including cash, check, money order, and online payments, and each one of these payment options has both pros and cons. When you learn more about the different forms of rent payment, you can select the option that is best for you and your tenants.
Rent payment methods are often decided on by taking to account several competing priorities. For instance, as a property owner, it’s very important for you that your tenants pay their rent consistently and on time. You’d want to use a method that allows you to receive the funds quickly. But tenants don’t share the same priorities. What they hold important are both convenience and keeping their information secure. By looking at what’s good and what’s bad with each type of payment method, you can determine which ones meet the different priorities.
Some property owners would opt that their tenants pay rent in cash or with a personal check. They would be required to go and meet their tenant personally to collect the payment, have the tenant deposit the funds in the owner’s account or ask the tenant to send it to them in the mail. But while cash payment is the fastest way to receive funds, it is also difficult to document. Without a paper trail, tenants with questionable character may claim that they paid in full. What makes this a problem is that you don’t really have a good way to verify the actual amount.
Personal checks create documentation of amounts and dates paid but are also problematic in some ways. Checks deposited can bounce, resulting in bank fees. Then you’ll need to go all the way back to the tenant for another method of payment. That’s such a waste of time. There’s no quick fix if your tenant decides to put a stop payment on a check. You’ll have no choice but to accept the delays in your cash flow.
Money orders or cashier’s checks seem like a decent option, and many property owners seem to agree. Money order or cashier’s check facilitates the quick transfer of the rent payment into your account because they are processed just like cash. The difference is that they leave a paper trail. This way, unlike cash, they can help resolve any disputes right away. Ordinarily, they do not bounce like personal checks. They can also be sent to you though banks, post offices, and convenience stores. A disadvantage would be your tenant having to go to one of these locations to send the money order or cashier’s check. They might find this inconvenient. When buying either of these financial instruments, the tenant has to pay in cash. Some institutions also ask you to pay a fee for their service. All of these things, plus the trip to the bank, makes this option more expensive than it has to be.
The growth of technology in our society has made online and mobile payment methods the new normal for rental payments. Paying online makes it very easy for tenants and this could encourage a more timely rent payment. But tenants have another concern and that is the security of their personal information. They are usually reluctant to use personal banking information on a website. But you can ease their fears a bit by using a secure online payment method. The drawback is that they usually charge fees. Fortunately for current property owners, there are online payment options that don’t charge expensive fees and don’t require banking information, such as Venmo and Zelle. These are quite popular and very convenient to use.
Take into consideration hiring a Forest property manager who will do the job of collecting rent from your tenants for you. At Real Property Management Cairn, we are serious about collecting rent in a systematic, timely way. As a franchise that has multiple locations all over the country, we can offer many convenient ways to pay rent. Your tenants would also love the incentives we can offer for paying on time. Our collection process is tough but fair and is based on the principle of respect. We make sure the tenant is treated properly. Don’t hesitate to contact us online or give us a ring at 434-215-3028 to know more about what we can do for you.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
