The problem of how to get your rent payments is an important decision every single-family rental property owner in Owasso has to learn to make. But knowing which way to go can be a challenge. There are multiple options for property owners, 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 often decided on by taking to account several competing priorities. For instance, as the owner of the property, you’d find it crucial that your tenants pay their rent consistently and on time. This would make you lean towards using a method that allows you to receive the funds quickly. On the contrary, tenants would prefer both convenience and keeping their information secure. By examining each type of payment method and taking a look at both their benefits and drawbacks, you can see how they stack up to the different priorities.
Some property owners want their tenants to pay rent in cash or with a personal check. They would need 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, tenants with bad intentions may claim that they paid in full. What makes this difficult is that you don’t have a 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. On top of that nuisance, you will also have to go back to the tenant and arrange for another method of payment. Tenants may choose to put a stop payment on a check, creating delays in your cash flow.
Money orders or cashier’s checks seem like a good choice, and for a good number of property owners, they are. Money order or cashier’s check facilitates the quick transfer of the rent payment into your account since they are cash-equivalents and are treated just like cash. But unlike cash, they leave a paper trail that can be used if there are any disputes. The paper trail would help resolve matters quickly. Generally speaking, they do not bounce like personal checks. They can also be delivered to you through banks, post offices, and convenience stores. A drawback to sending a money order or cashier’s check is that your tenant would be required to go to one of these locations. They might not like the added inconvenience. When purchasing either of these options, the tenant must pay in cash. Then there is the added cost since most times they are asked to pay a fee. You add all these things on top of the trip to the bank, then you’ve got an option that is really a bit of a hassle for them.
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 suspicious if they have to use personal banking information on a website. They are really concerned about the security of their personal information. But you can ease their fears a bit by using a secure online payment method. The drawback 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.
Have you ever thought about employing an Owasso property manager? A property manager can collect rent from your tenants for you and allow you to concentrate on growing your business. At Real Property Management Tulsa, we take collecting rent seriously. We do it in a systematic and timely way. As a national franchise, we have the ability to offer tenants a variety of convenient ways to pay rent. We can even set up an incentive program to encourage them to pay on time. Our collection process is tough but fair. This means we treat tenants with the respect they deserve. If you want to know more about what we can do to serve you, don’t hesitate to contact us online or call us at 918-532-7020.
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.