A single-family rental property owner in Clarkesville means you have to solve the dilemma of how to receive your rent payments–it is one of the most important decisions you can execute. Nevertheless, identifying which direction to go can be complicated. There are various options open to property owners, including cash, check, money order, and online payments, and each one of these payment options has both pros and cons. But by examining more about the different forms of rent payment, you can better choose the option that is best for you and your tenants.
Several competing priorities regularly determine rent payment methods. For example, as a property owner, you would choose your tenants to pay their rent consistently and on time, using a method that allows you to receive the funds quickly. Then again, tenants are ordinarily concerned about both convenience and keeping their information secure. By examining the advantages and disadvantages of each type of payment method strictly, in turn, it is then possible to consider how each one fits these different priorities.
There are property owners who choose that their tenants pay rent in cash or with a personal check. Those that do so are typically required to visit the 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, a tenant could argue that they paid in full when they didn’t, and there would be no means 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 and the struggle of returning to the tenant for another method of payment. Tenants could also put a stop payment on a check, creating delays in your cash flow.
Money orders or cashier’s checks appear to be good options, and for many property owners, they are. Money order or cashier’s check facilitates the quick transfer of the rent payment into your account because they are treated just like cash. But unlike cash, they leave a paper trail that can help fix any disputes fast. They usually do not bounce, like personal checks, and can be sent quickly through banks, post offices, and convenience stores. Sending a money order or cashier’s check does need your tenant to go to one of these locations–which some people may find troublesome. Obtaining either of these options also compels the tenant to pay for it in cash, and most times, pay a fee, which adds a trip to the bank on top of everything else.
In today’s digital age, online and mobile payment methods are set to be the new normal for rental payments. Paying online gives tenants the comfort they are looking for and may promote more timely rent payment. But tenants are typically concerned about the security of their personal information, and hesitant to use personal banking information on a website. Utilizing a secure online payment method can help ease tenant concerns but can end up in more expenses in the form of fees. Online payment options that don’t charge expensive fees and don’t require banking information, such as Venmo and Zelle, are growing more popular and are the usual choices for today’s landlords and property owners.
One more great choice is to let a Clarkesville property manager collect rent from your tenants for you. At Real Property Management Stellar, we are intent on collecting rent in a systematic, timely way. As a national franchise, we can offer tenants a variety of convenient ways to pay rent, not to mention incentives for paying on time. Our collection process is tough but fair and centered on treating tenants with respect. For more information, contact us online or call us directly at 706-864-5456.
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.
