BiggerPockets

Todd, if you are accepting cash make sure to give them a receipt always. Sometimes even photo-copying the actual cash will help. Remeber, Cash cant bounce like a check. Or make sure you get a money order or bank certified check. Most renters dont do this.

I absolutely do not accept cash. It's in the lease and I go over this with every tenant to make sure they know we're a No Cash business.

Last thing I want is someone's junkie brother getting the idea that we have a bunch of cash on hand around the first of the month.

I receive the vast majority of my rents IN CASH. Cash doesn't bounce and I don't have to wait several days to make sure it won't bounce. I do accept checks from my better tenants (never for the initial rent payment or security deposit). Did you know that a money order can be cancelled? They can!

I give every tenant that pays cash a receipt. I write the tenant's name on the top of the stack of money that I get from each tenant so that I know who gave me each bill. I check each bill with a counterfeit pen before making the deposit.

I have evicted dozens of tenants and have never had an issue. When we get to court, if they don't have a receipt, they didn't pay rent.

Finally, I carry a gun (all the time) and am serious about self-protection. It would be a serious mistake for some scumbag to attempt to rob me.

Mike

Many years ago in CA, I had a money order company go out of business and I was stuck with the worthless check.
I still like my way. No cash, no time receiving rents and tenant has a bank receipt to prove rent was paid. If someone has an easier, safer way than that, tell me.

Why not set up something like Paypal or some online rent pay account.

I use Rich's method of providing deposit slips. I recommend it with one minor reservation. We didn't plan very well in advance and now I have several tenants that pay the same amount each month. When one doesn't pay on time I have to figure out which one and that's a bit of a pain. Next year all of our leases will be odd numbers ($502 for example) which will make it pretty foolproof.

Wells Fargo doesn't scan the deposits. I wish they did. Is that normal?

I still love my way of collecting the rents. My bank does scan the deposit slips. It is not a big national bank, but an area bank with offices all over the Mcallen TX (Rio Grande Valley area) where I am.

No only might the tenant withdrawal all the funds from your account, but you're providing the tenant with a lot of information that they shouldn't have - like where you bank and your account number.

That just makes it easier for someone to sue you. I don't want my tenants to know where I bank; where I live; my home phone number; etc. The less they know, the better.

I like CASH (after it's been checked with a counterfeit pen, of course)!

Mike