Being a single-family rental property owner in Williston, the problem of how to obtain your rent payments is one of the most important decisions you can make. Nonetheless, knowing which route to go can be tricky. There are numerous 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. But by studying more about the different forms of rent payment, you can discover the selection that is right for you and your tenants.
Several competing priorities continually determine rent payment methods. For instance, as a property owner, you would like your tenants to pay their rent consistently and on time, using a method that allows you to receive the funds quickly. Then again, tenants are usually concerned about both convenience and keeping their information secure. By taking a closer look at the perks and disadvantages of each type of payment method, in turn, it is then likely to examine how each one satisfies these different priorities.
There are property owners who favor that their tenants pay rent in cash or with a personal check. Those that do so will typically need to visit the tenant personally 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 declare that they paid in full when they didn’t, and there would be no resources 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 trouble of returning 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 look like good prospects, and for many property owners, they are. Money order or cashier’s check facilitates the quick transfer of the rent payment into your account because they are treated just like cash. But unlike cash, they leave a paper trail that can help fix any disputes fast. They usually do not bounce, like personal checks, and can be sent fast through banks, post offices, and convenience stores. Sending a money order or cashier’s check does need your tenant to visit one of these locations, though, which some people may find inconvenient. Acquiring either of these options also necessitates that the tenant pays for it in cash, and most times pay a fee, which adds a trip to the bank on top of everything else.
In today’s digital era, online and mobile payment methods are set to be the new normal for rental payments. Paying online provides tenants the comfort they are looking for and may promote more timely rent payment. But tenants are typically concerned about the security of their personal information, and unwilling to use personal banking information on a website. Utilizing a secure online payment method can help comfort tenant fears but can occasionally cost more than you’d like 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 popular options for today’s landlords and property owners.
One more great choice is to let a Williston property manager collect rent from your tenants for you. At Real Property Management Sterling, we are keen on collecting rent in a systematic, timely way. As a national franchise, we can offer tenants a variety of convenient ways to pay rent, not to mention incentives for paying on time. Our collection process is tough but fair and centered on treating tenants with respect. For more information, contact us online or call us directly at 802-861-6468.
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