One concern of single-family rental property owners in Lake Nona 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. There are different ways 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 at the different forms of rent payment side by side, you can find out which one will work best for you and your tenants.
Rent payment methods are often selected after running it through several competing priorities. For instance, as a property owner, it’s very important for you that your tenants pay their rent consistently and on time. You’d want to use 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 learning more about each type of payment method, you can see how each of them addresses (or ignores) the different priorities.
There are property owners that request their tenants to pay rent in cash or with a personal check. They will need to visit their 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 with bad motives could simply claim that they paid in full even though they didn’t. The bad part is that you wouldn’t be able 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. Then you’ll have to go back to the tenant for another method of payment and it would be so much of a hassle. There’s no quick fix if your tenant decides to put a stop payment on a check. You’ll have no choice but to accept the 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. The difference is that they leave a paper trail. This way, unlike cash, they can help resolve any disputes right away. Ordinarily, they do not bounce like personal checks. They can also be sent to you though banks, post offices, and convenience stores. One disadvantage would be that your tenant may find it inconvenient because sending a money order or cashier’s check would mean that they’d have to go and visit one of the locations. Purchasing either of these options still requires the tenant to pay cash. On top of that, they often have to pay a fee. This fee gets added to the cost of the trip to the bank, and now you have an option that is more expensive than it should be.
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 grants tenants the convenience they like and this could encourage them to make timely rent payments. But tenants are also concerned about another thing— the security of their personal information. They don’t really want to type in their personal banking information on a website. Now, if you select to use a secure online payment method, you are addressing your tenant’s fear. The only problem with this arrangement is that there might be additional fees. Venmo and Zelle, online payment options that don’t charge expensive fees and don’t require banking information, are becoming the top choice among property owners and landlords.
Take into consideration hiring a Lake Nona property manager who will do the job of collecting rent from your tenants for you. At Real Property Management Verita, we are serious about collecting rent in a systematic, timely way. Since we have offices all around the country, we can offer tenants many convenient ways to pay their rent. We can also give incentives to them for paying on time. Our collection process is tough but fair, making sure we treat tenants with the respect they deserve. Don’t hesitate to contact us online or give us a ring at 321-972-6823 to know more about what we can do for you.
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