Through Money Order
Money order is a secure form of payment (just like a cashier’s check), and is derived from prepaid funds that are issued by post offices, banks, groceries or drug stores.
Though money orders are great for one-time payments, they are not practical for long-term payments for rent since the tenant needs to go out every month to get one.
Through Email Transfer or Direct Deposit
Since email transfer and direct deposit are easy and convenient to instantly collect rent payments, it has become more common among landlords.
This type of payment method is beneficial to both parties since a lot of people have Internet and do online banking. Moreover, digital records are a big plus because they provide you with an e-paper trail as record of the date you received payment.
Some disadvantages are: a minimal transfer – though this is lower than other forms – and when a tenant is not around or does not have Internet connection, you may not receive payment until the time they are able to have access to their online account.
PayPal, just like email transfer, is an online payment method. Setting up a PayPal account is easy – the user goes to the PayPal website to sign up, then allows their bank account to link to their PayPal account. In this way, the tenant transfers cash from their bank account to PayPal account and transfers the rent payment to their landlord by paying a small fee.
To use PayPal, the landlord and tenant must have their own accounts to be able to make the transfer work. The cons of using PayPal are the number of steps people need to go through. First, tenants need to set up an account, transfer money from their bank account to PayPal then to the PayPal account of their landlord and possibly to their investment property account.
The Suitable Payment Method
As a landlord, while the payment method you accept could look like a small detail, it is very important. Your situation and the number of properties you own and lease will have an effect on the form of payment you can easily manage.
When you own several properties, setting up a single payment method may be an easy way to track all rent payments received. If you have one or two properties for rent, you can accept different forms of payment based on what a tenant prefers.
If you and your tenant agree on a payment method that benefits both parties, this would make your renter pay in full and right on schedule.