Issues with collecting cash ?

[Cynthia Archuleta]

Why does everyone suggest against collecting rent in cash? I live in close proximity to a renter who pays in cash. Collection is no hassle. What are the other issues other than time?

[Account Closed]

Counterfeit.  Loss.  Proof of payment/receipt.  Bank loses your deposit and asks you for proof.

If you already have the tenant, and collecting cash works for you, then just be sure and provide a receipt.  Keep a receipt book.

The day could come, though, when they say they paid and you didn't provide a receipt.  When I took over management of a building with several cash paying tenants, I insisted that everyone start paying with money orders or checks.  It was a way to avoid having anyone say they paid me when they hadn't.  Then, I could always say, "Where's the money order receipt?"  

I kept a spreadsheet with all of the MO and check numbers.  I even photocopied all of them because, believe it or not Wells Fargo actually lost the deposit more than once of around $22,000.  It eventually was found, but they asked me for proof and I could always provide it.