As a single-family rental property owner in Culver City, the issue of how to secure your rent payments is one of the most important decisions you can make. However, understanding which direction to go can be difficult. There are several selections available 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 learning more about the different forms of rent payment, you can determine the option that is right for you and your tenants.
Several competing priorities frequently define rent payment methods. For example, as a property owner, you would like 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 often concerned about both convenience and keeping their information secure. By taking a closer look at the benefits and drawbacks of each type of payment method, in turn, it is then likely to consider how each one meets these different priorities.
There are property owners who prefer that their tenants pay rent in cash or with a personal check. Those that do so will usually need 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 claim 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 bother 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 seem like 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 resolve any disputes quickly. They usually do not bounce, like personal checks, and can be sent fast through banks, post offices, and convenience stores. Sending a money order or cashier’s check does need your tenant to visit one of these locations, however, which some people may find problematic. Purchasing either of these options also needs that the tenant pays 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 culture, online and mobile payment methods are turning out to be the new normal for rental payments. Paying online gives tenants the ease they are looking for and may urge more timely rent payment. But tenants are typically concerned about the security of their personal information, and unwilling to use personal banking information on a website. Utilizing a secure online payment method can help comfort tenant fears but can occasionally cost more than you’d like in fees. Online payment options that don’t charge expensive fees and don’t require banking information, such as Venmo and Zelle, are becoming increasingly popular choices for today’s landlords and property owners.
One more great option is to hire a Culver City property manager who will collect rent from your tenants for you. At Real Property Management Choice, we are diligent about 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 310-928-9728.
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.