As a single-family rental property owner in Fishers, the issue of how to get your rent payments are classified as among some of the most important decisions you can make. Nevertheless, comprehending which method to choose can be a concern. There are several 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. However, by knowing more regarding the different forms of rent payment, you can select the type that is right for you and your tenants.
Rent payment methods are frequently determined by several competing priorities. For instance, as a property owner, you want your tenants to pay their rent consistently and on time, using a method that allows you to receive the funds quickly. On the other side, tenants are usually concerned about both convenience and keeping their information secure. By carefully scrutinizing the gains and disadvantages of each type of payment method, it is then possible to be able to see how each one type can answer these different priorities.
Many property owners want their tenants to pay rent in cash or with a personal check. Those that choose it will oftentimes have to go to the tenant in person 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 may merely say that they paid in full when they didn’t, and there could be 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 issue of coming back to the tenant for another method of payment. Tenants might additionally put a stop payment on a check, creating delays in your cash flow.
Money orders or cashier’s checks look like great options, and for plenty of property owners, they are. Money order or cashier’s check facilitates the quick transfer of the rent payment into your account since they are handled the same as cash. Though unlike cash, they leave a paper trail that could help fix any disputes immediately. They normally do not bounce, like personal checks, and can be transmitted straight away by banks, post offices, and convenience stores. Forwarding a money order or cashier’s check does require your tenant to go to one of these locations, which some people may find uncomfortable and inconvenient. Buying and using either of these options furthermore obligates the tenant to pay for it in cash and also pay a fee, along with a trip to the bank above everything else.
In today’s digital culture, online and mobile payment methods are the new normal for rental payments. Paying online for tenants includes the easy convenience they are searching for and could encourage more timely rent payment. But tenants are usually worried regarding the security of their personal information and hesitant to utilize personal banking information on a website. Utilizing a secure online payment method can help alleviate tenant apprehensions, but on the other hand, it can occasionally cost more than you’d want in fees. Online payment options that don’t charge expensive fees and don’t require banking information, such as Venmo and Zelle, are becoming a better alternative for today’s landlords and property owners.
Another excellent alternative is to employ a Fisher’s property manager who will collect rent from your tenants for you. At Real Property Management Indianapolis Edge, we are careful with collecting rent in a systematic, timely way. As a national franchise, we can give tenants a choice of convenient ways to pay rent, let alone incentives for paying on time. Our collection process is tough but fair and focused on handling tenants with respect. For more information, contact us online or call us directly at 317-420-8500.
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