Landlord Quick Tip

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Tip #215: We Take Cash…and Risks!

Accepting cash may seem like a sure bet for landlords. After all, it beats dealing with bounced checks or declined credit cards. But accepting cash increases risks, including:

Theft,

Shortchanging, and

Accepting illegal funds.

If you must accept cash, take some precautions:

Accept cash in person only.

Count the funds and issue a rent receipt.

Deposit the cash immediately — never leave it around the office where others may see it.

Be leery of tenants who operate on a cash-only basis.

Don’t accept cash for an application fee. The information on a check can come in handy if the tenant later fails to pay rent.

See last week’s Landlord Quick Tip.

American Apartment Owners Association offers discounts on products and services for landlords related to your rental housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.