The topic of receiving your rent payments is one of the most important decisions a single-family rental property owner in Cedar Park can make. But knowing which way to go can be a challenge. There are a variety of choices available to property owners, including cash, check, money order, and online payments, and each one of these payment options has both pros and cons. When you compare the different forms of rent payment, you can see which one fits best for you and your tenants.
Rent payment methods are often chosen based on 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 ask their tenants to pay rent in cash or with a personal check. They would be required to physically 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 questionable character may claim that they paid in full. What makes this a problem is that you don’t really have a good 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. Now you’ll have to deal with that on top of having to go back to the tenant and ask for another method of payment. There’s not much you can do right away if a tenant puts a stop payment on a check. It’s just going to create delays in your cash flow.
Money orders or cashier’s checks seem like a nice option, and a lot of property owners have no complaints. Money order or cashier’s check facilitates the quick transfer of the rent payment into your account since they are handled just like how cash is handled. The difference is the paper trail that they leave behind. That means that any disputes can be resolved quickly! This is something cash payments cannot provide. They normally do not bounce like personal checks and can be sent quickly through banks, post offices, and convenience stores. A disadvantage would be your tenant having to go to one of these locations to send the money order or cashier’s check. They might find this inconvenient. When buying either of these things, the tenant has to do it in cash. On top of that, most places ask you to pay a fee. All these costs, on top of the trip to the bank, add up to make this option a bit more expensive 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 makes it very easy for tenants and this could encourage a more timely rent payment. But tenants are also cautious when it comes to the security of their personal information. They don’t want to put their personal banking information on a website. But you can make it safer for both you and your tenants if you use a secure online payment method. The only downside to this is that they usually charge fees. Landlords and property owners have better options to choose from nowadays than ever before. Venmo and Zelle, online payment options that don’t charge expensive fees and don’t require banking information, are quickly becoming some of the favored tools of the trade.
One option to consider is hiring a Cedar Park property manager who will collect rent from your tenants for you. At Real Property Management Longhorn, we understand the importance of 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. Feel free to contact us online or by phone at 512-580-3099. We’ll be glad to answer any of your questions.
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