Payment Methods Accepted by Landlords

[Account Closed]

Hi Everyone! 

I'm really excited to have found the BP community. I've been watching the forums and browsing and satisfying my curiosity about the subject and science of REI.

I've talked with a few landlords in my local area, and they have lots of issues with renters meeting the due dates for rent (typically, due by the 1st, Late fees start applying after the 5th of each month). One of the issues that I've seen arise lately, and is tending to be a trend is for a tenant to write a check, mail it, and by the time it is received by the landlord the funds will bounce, be denied, or the check is canceled by the renter.

I'm preparing to take over / assist with a few rental properties (family owned) and I wish to avoid issues with these items. Has anyone on BP have experience of only allowing certain methods of payment to satisfy the rent payments? I'm thinking of limiting the payment of rent to Cashier's Checks only.

What  are your thoughts?

[Camie Jelinek]

Honestly I only want money orders and cashiers checks - certified funds only.

Here is why:

Cash -can't track it. The tenant can say he gave my property manager $500 and she only turned in $300 and there starts a problem so cash is always a bad idea. We do not accept cash ever!

Checks- can bounce.

Credit Card payments- You may have to pay the 3% fee to accept cards, and even if the tenant incurs the fee instead of you. I have seen credit card charges be reversed and the money taken back from the landlord bank account if the tenant claims it was charged without their consent (when it wasn't) and land lords losses out. Not that it happens often but I have seen it.

Direct Bank deposit- This is good way to collect rent BUT in the event you are evicting a tenant and your state has a law that says any payment made to you by the tenant  after the filing of eviction throws the case out you can run into problems with them depositing any amount of money (even $1) and getting the eviction stopped all together.

Of course you choose the method best for you in your situation. Good Luck to you!