As a renter, often your monthly rent is the largest expense you pay. With technology today, renters have more options to pay rent.
This article will explore the best ways for you to pay rent. Interesting ways to benefit financially from paying rent too! And how to avoid fees.
When it comes to rent payments, it is crucial to have a record of your payment. Whether online or in-person, always get some form of a receipt.
It is important to understand what your lease agreement will allow. For example, some lease agreements only allow or forbid certain methods. Take the time to properly review your lease before signing. Understanding all the terms can prevent headaches later.
We present the best ways to pay rent. As well as the worst ways to pay your rent.
Best ways to pay rent
Cashier’s Check / Certified Check / Money Order
All these options are fully funded checks. Therefore, no risk for insufficient funds. It is important to request a receipt with these payment types. Always receive the payment at that time and never allow the landlord or manager to bring later.
There is a downside. These commonly have a fee. Also, try not to mail as these are the equivalent of cash. If they get lost, you can kiss that money goodbye.
The best way for renters to pay rent is online. With modern technology, pay directly from your bank account to the landlords. This prevents any personal information from being exchanged. Records kept online provide proof of payment. Good software will provide email alerts and reminders. Helping you avoid late rent fees.
Your landlord might use property management software to collect rent online. Ask your landlord what software they use. Majority of them require the tenants to pay a ‘rent payment’ fee up to $5. If your landlord does not have a software, recommend one that provides renters free direct deposit payments.
Through online platforms, renters can set up automatic payments. This prevents late fees in the future.
Credit Card with Perks
Want to take advantage of paying rent? Use your credit card to earn points and miles. Rent is your largest monthly expense. Yet, most of us receive zero perks for paying. Writers note: Southwest Airlines has the best rewards program!
Paying by credit card helps build your credit over time. If your credit card perks do not outweigh the benefits, building your credit can have long-term benefits.
Renters should only pay with credit card if you can pay off your statement every month. Or you may start to dig yourself into a hole that will be hard to climb out of with interest.
Worst ways to pay rent
Paying rent with cash might seem the best and easiest way. However, without proper documentation, renters may be exposed to no proof that rent was indeed paid. Leaving their fates in the hands of court. If you must pay by cash, request a receipt before you pay rent. With receipt in hand, this is your proof that you paid rent.
Cash payments may require a meeting between two parties. Never mail cash for your rent. If the landlord or property manager are not the one to physically take the cash, make sure you receive the receipt and who you handed the cash to.
In every lease agreement there is a clause for personal checks that bounce. Fees range from $25 to $50. As well, your bank will hit you with insufficient fund fees. Due to the risk of insufficient funds, most managers or landlords forbid personal checks.
Personal checks have little upside. Besides fees for bounced checks, renters rely on their landlords or managers to cash the check before a transaction date is recorded. Regardless of the date on the personal checks, landlords and managers are most likely to record the date they received the check.
After being fined by your landlord, manager and bank, you will still be hit for late rent. Avoid the risk of unnecessary fees. Do not pay with personal checks.