Being a single-family rental property owner in Hoover, the issue of how to pick up your rent payments is an important decision you have to make. But knowing which way to go can be a challenge. Property owners have many options available, 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 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 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, dishonest tenants would have to only claim that they paid in full and you’d be in a bind because you couldn’t verify the amount that they paid.
Personal checks create documentation of amounts and dates paid but are also problematic in some ways. Checks deposited can bounce, resulting in bank fees. Now, in order for you to get paid, you’ll have to go back to the tenant 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 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 considered to be just like cash. What’s different would be the paper trail that they leave behind. Unlike cash, these can be used to help resolve any disputes quickly. They typically do not bounce like personal checks. You can also have them sent through banks, post offices, and convenience stores. One drawback is in your tenant’s convenience. Sending a money order or cashier’s check means that they have to visit one of the locations. 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.
With the technological progress in today’s culture, online and mobile payment methods are turning into the new normal for rental payments. Paying online makes it convenient for tenants and may encourage 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 make them feel safer by using a secure online payment method. The only drawback is that they usually charge fees when you use their services. 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.
You might want to consider hiring a Hoover 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 Victory, we know how important it is to collect rent in a systematic, timely way Since we are all over the country, we can offer tenants a variety of convenient ways to pay rent. We can even offer them incentives for paying on time. Our collection process is tough but fair and is built around treating tenants with respect. If you are interested in learning more or have additional questions, please contact us online or by phone at 205-793-0700 today.
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