As a single-family rental property owner in Beebe, the point of how to receive your rent payments is definitely one of the most important decisions you can make. But still knowing exactly which way to go can be a real challenge. There are numerous options within reach for property owners, including cash, check money order, and online payments and each one of these payment options has both pros and cons. So by doing your due diligence regarding the different forms of rent payment, you can make an informed decision regarding what is good for you and your tenants.
Rent payment methods are oftentimes determined by several competing priorities. As for example, as a property owner, you like your tenants to pay their rent consistently and on time, using a method that allows you to receive the funds quickly. However, tenants are mostly concerned about both convenience and keeping their information secure. By weighing closely the plus and minuses of each type of payment method, it is then quite possible to know which would best suit your particular needs and priorities.
Some property owners would like their tenants to pay rent in cash or with a personal check. Those that choose this will usually need to meet with the tenant face to face 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 solely argue that they paid in full when they didn’t, and there could have been no way 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 concern of going back 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 would seem like also a really good option, and for a lot of property owners, they are. Money order or cashier’s check facilitates the quick transfer of the rent payment into your account given the fact that they are considered the same as cash. But unlike cash though, they leave a paper trail that might foster the resolution of any disputes without delay. They mostly do not bounce, like personal checks, and could be sent at once via banks, post offices, and convenience stores. Sending a money order or cashier’s check does require your tenant to go to any one of these places, which several people may find really inconvenient and a hassle. Also, using either of these may need the tenant to pay up for it in cash and most times pay a fee, which necessitates a trip to the bank on top everything else.
In today’s digital culture, online and mobile payment methods are developing into the new normal for rental payments. Paying online gives the tenants the convenience and ease they are in search of and usually encourages a more timely rent payment. Nevertheless, tenants are frequently bothered about the security of their personal information and afraid to enter personal banking information on a website. Making use of a secure online payment method can assist to lessen tenants’ concerns but may also, at times, cost more than you’d desire in fees. Online payment options that don’t charge expensive fees and don’t require banking information, such as Venmo and Zelle, are becoming more and more well-liked options for today’s landlords and property owners.
A different but equally very good choice is to appoint a Beebe property manager who will collect rent from your tenants for you. At Real Property Management Delta, we are seriously attentive concerning collecting rent in a systematic, timely way. As a national franchise, we can provide tenants all manner of convenient ways to pay rent, also including incentives for paying on time. Our collection process is tough but fair and concerned with attending to tenants with respect. For more information, contact us online or call us directly at 501-404-0674.
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