The topic of receiving your rent payments is one of the most important decisions a single-family rental property owner in Celina can make. But knowing which way to go can be a challenge. Property owners have a variety of choices available, including cash, check, money order, and online payments, and each one of these payment options has both pros and cons. When you take a closer look at the different forms of rent payment, you’ll be able to see how each of them works. You can use that information to select the best one for you and your tenants.
Rent payment methods are selected by taking a look at several competing priorities. For example, since you’re the property owner, you’d want to prioritize your tenant paying their rent consistently and on time. You would prefer to use a method that allows you to receive the funds quickly. Then again, tenants don’t really prioritize those. For them, they’d want both convenience and keeping their information secure. By looking into each type of payment method, you can see the benefits and drawbacks of each one and what their solutions are to different priorities.
Some property owners want their tenants to pay rent in cash or with a personal check. They would have to personally visit the tenant 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, a tenant with bad motives could simply claim that they paid in full even though they didn’t. The bad part is that you wouldn’t be able to verify the 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. On top of that nuisance, you will also have to go back to the tenant and arrange for another method of payment. You also can’t stop tenants from putting a stop payment on a check, creating delays in your cash flow.
Money orders or cashier’s checks seem like a solid choice, and many property owners are happy with it. Money order or cashier’s check facilitates the quick transfer of the rent payment into your account since they are handled just like how cash is handled. The difference is the paper trail that they leave behind. That means that any disputes can be resolved quickly! This is something cash payments cannot provide. They normally do not bounce like personal checks and can be sent quickly through banks, post offices, and convenience stores. One disadvantage would be that your tenant may find it inconvenient because sending a money order or cashier’s check would mean that they’d have to go and visit one of the locations. When buying either of these things, the tenant has to do it in cash. On top of that, most places ask you to pay a fee. All these costs, on top of the trip to the bank, add up to make this option a bit more expensive than it has to be.
With the advancement of technology, online and mobile payment methods are fast becoming the new normal for rental payments. Paying online grants the convenience that tenants want and may encourage more timely rent payment. But tenants are also cautious when it comes to the security of their personal information. They don’t want to put their personal banking information on a website. But you can make it safer for both you and your tenants if you use a secure online payment method. The only downside to this is that they usually charge fees. Venmo and Zelle, online payment options that don’t charge expensive fees and don’t require banking information, are quite popular among landlords and property owners nowadays.
You might want to consider hiring a Celina property manager. He or she can collect rent from your tenants for you and help free up your time for other tasks. At Real Property Management Focus, we understand the importance of collecting rent in a systematic, timely way. Since we have offices all around the country, we can offer tenants many convenient ways to pay their rent. We can also give incentives to them for paying on time. Our collection process is tough but fair, making sure we treat tenants with the respect they deserve. Feel free to contact us online or by phone at 469-820-0088. We’ll be glad to answer any of your questions.
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