One concern of single-family rental property owners in Charleston is how to obtain their rent payments. This is one of the most important decisions a property owner 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 often chosen after considering several competing priorities. For example, as a property owner, your priority would be your tenant’s ability to pay their rent consistently and on time. This would make you prefer using a method that allows you to receive the funds quickly. On the other hand, tenants don’t have these priorities. What they regard as important is both convenience and keeping their information secure. By going through the details of each type of payment method, you will be able to determine how each method approaches 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. Then you’ll have to go back to the tenant for another method of payment and it would be so much of a hassle. 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 because they are pretty much a cash equivalent. 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 normally do not bounce like personal checks and can be sent quickly through banks, post offices, and convenience stores. Opting for a money order or cashier’s check means that your tenant must visit one of these locations. The problem is that some people may think it’s very inconvenient. They have to pay for it in cash when they buy it. Also, most institutions ask them to pay a fee for their service. Now, if you add all that to the time and cost of the trip to the bank, you get an option that is more costly than it has to be.
The growth of technology in our society has made online and mobile payment methods the new normal for rental payments. Paying online gives tenants the convenience they want and that may encourage them to pay their rent in a timely manner. 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. Nowadays there are online payment options that don’t charge expensive fees and don’t require banking information, such as Venmo and Zelle. These are becoming very popular options for today’s landlords and property owners.
By hiring a great Charleston property manager, you’ll be free to concentrate on other matters since your property manager will collect rent from your tenants for you. At Real Property Management Distinguished Care, we are serious about collecting rent in a systematic, timely way. As a franchise that has multiple locations all over the country, we can offer many convenient ways to pay rent. Your tenants would also love the incentives we can offer for paying on time. Our collection process is tough but fair and built upon the foundation of mutual respect of each other— especially towards the tenants. Don’t hesitate to contact us online or give us a ring at 828-342-9683 to know more about what we can do for you.
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.
