So you’re just getting started with owning your first rental property and your Central Valley Renters want to pay their rent in cash.
Is accepting a cash payment for your rent something that you want to consider especially as you purchase more rental properties in the future?
The answer to this question is no, especially for these reasons:
You Won’t Really Know Who You Are Renting To
Although not everyone who refuses to pay via check has something to hide, you will always know who you are renting to when you require your tenants to pay via check, money order or cashier’s check because each form of payment has an actual record associated with it and you can always go back to the institution that issued the check or money order if problems arise with tat payment.
Cash Isn’t Always the Safest Option
Another reason to have a no cash policy is because you will ultimately have to take that cash to the bank, or store it in your office temporarily, and there’s always the potential risk of keeping large amounts of cash lying around until you’re able to deposit it.
The Cash Payment Will Always Have To Be Logged
Last of all, but most important, another reason to not accept cash from your tenants is that those payments will always have to be logged and the tenant who pays in cash will have to receive a receipt.
Accepting cash from your Central Valley Renters can open the door to problems for your company because the tenant can always say that they didn’t receive a receipt from you so it’s best to state your preference for checks, cashier checks or money orders in the very beginning rather than accepting cash.
Get More Central Valley Renters
For more tips on how to effectively deal with your Central Valley Renters, or to get effective property management tips, contact RPM Central Valley today by calling us at (209) 572-2222 or click here to connect with us online.