The problem of how to get your rent payments is an important decision every single-family rental property owner in Stamford has to learn to 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 look into the different forms of rent payment, you’ll be able to see the differences and be better able to select which one works best for you and your tenants.
Rent payment methods are often chosen after considering 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. However, tenants don’t share that priority. For them, they would want to have 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.
There are property owners that request 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. 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. 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 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 because they are considered to be just like cash. What’s different would be the paper trail that they leave behind. Unlike cash, these can be used to help resolve any disputes quickly. Generally speaking, they do not bounce like personal checks. They can also be delivered to you 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. 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 development of technology, these days, online and mobile payment methods are starting to be adopted as 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 are also wary of something else: the security of their personal information. Some of them aren’t willing to place their 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. 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.
Have you ever thought about employing a Stamford 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 Southern Connecticut, we know how important it is to collect rent in a systematic, timely way As a national franchise, we can give tenants a lot of convenient ways to pay rent and even give some incentives for paying 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 203-821-7303.
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