One of the biggest mistakes that many owners make when they first get started with owning rental properties is accepting cash from their tenants because some people may think that it’s easier to accept cash rather than alternative forms of payment.
The reality is that accepting cash is not the best thing to do when you own rental property, especially for these reasons.
#1 – Cash Can Easily Be Lost
Yes, it’s true, cash deposits can easily be lost from the point the owner accepts the deposit from their tenants before they make the trip to their bank and sadly once the deposit is lost there is no way for the landlord to get that cash back compared to checks or money orders which can always be rewritten.
#2 – Cash Is Very Easy To Steal
One thing property owners don’t want to think about is that cash is very easy to steal and there have been many property owners over the years who have been robbed on the way to their banks as they were about to deposit large sums of cash or they were robbed from one of their own employees who stole cash from their office.
#3 – Cash Can Be Untraceable
Another problem with accepting cash for rent is that it’s untraceable and any landlord who is accepting cash payments could very well have someone paying them in cash because they engaged in illegal activity in the past and don’t want to be found.
A good example of this is the notorious criminal James “Whitey” Bulger who lived “under the radar” for 15 years because he was able to pay his rent with cash every month and avoid being found.
What’s The Alternative to Cash Rental Payments?
One simple solution to cash rental payments is to have an online portal for your tenants to pay you over the internet. You should also offer your tenants the ability to pay their rent by check in your office, or with their debit cards since a debit card is a secure transaction.
To learn more solutions to help you manage your portfolio of rental properties more professionally, or to speak with us about our property management services, contact RPM Central Valley today by calling us at (209) 572-2222 or click here to connect with us online.