Inherited tenant wants to pay cash

[Maria M.]

Hello everyone,

I have two inherited tenants who want to pay cash. They could do so without problems in the past, because the previous owner employed a property manager. The rent is over $1000, so I think mailing a money order is not possible. What do you think my options are if I don’t want to go pick up rent in person every month? Is my only other option to hire a property manager? Thank you! 

[Tanner Sherman]

Quote from @Maria M.:

Hello everyone,

I have two inherited tenants who want to pay cash. They could do so without problems in the past, because the previous owner employed a property manager. The rent is over $1000, so I think mailing a money order is not possible. What do you think my options are if I don’t want to go pick up rent in person every month? Is my only other option to hire a property manager? Thank you! 

1. I would highly advise against accepting cash for many reasons, but here are a couple. 
2. 1. Security concerns: Accepting large amounts of cash can put you at risk of theft or robbery. If you're not comfortable handling cash, it's best to find alternative payment methods.

3. 2. Difficulty with record-keeping: Cash payments can be difficult to track and document, which can cause problems down the line if you need to provide proof of payment or rental history.

4. 3. Legal issues: Accepting cash can also make it harder to enforce rental agreements or pursue legal action if necessary. It's important to have a clear paper trail when it comes to rent payments.

As for alternatives, there are several third-party resources available that make it easy for tenants to pay rent electronically. Here are a few options to consider:

1. 1. Online payment processors: Services like PayPal, Venmo, and Zelle allow tenants to transfer money electronically using their bank accounts or credit cards.

2. 2. Property management software: Many property management software solutions offer built-in payment processing capabilities, making it easy for tenants to pay rent online. We use RentRedi.

3. 3. Dedicated rent payment services: Companies like RentMoola and RentTrack specialize in processing rent payments electronically, and often offer additional features like automatic payments and reminders.

By utilizing these resources, you can avoid the hassle and risks associated with accepting cash while still providing your tenants with convenient payment options.