What are the different types of rent payments?

An inevitable part of life is having to pay for housing accommodation. Regardless of whether it’s a house or an apartment, or if you are renting or buying, housing is a major expense. When it comes to renting payments, having options is beneficial.

Having different payment options can make it easier for you and the landlord to process payment of your negotiated and agreed rent.

Of course, not every place will provide various rent payment methods. This could be due to a myriad of reasons – including a landlord’s personal preference

1. Checks

There are many different types of checks that a landlord would accept for rent payment. The nice thing about paying with a check is that it can be traced, and it is easy to keep track of.

In many cases, the payment also has to be made out to the business.

Fortunately, this could deter any would-be embezzlers from taking your check and depositing it into their personal account.

Tenants can also post-date their checks meaning they can conveniently handover half a year or a year’s worth of payment that can only be cashed in by the landlord on the marked date.

Some of the different types of checks include:

Personal

This check type is tied to your personal account. The check will have to clear your account before the landlord is able to get their money.

Since they are unable to verify if the funds are actually in your account, some places may not accept personal checks as payment. If a landlord has had to deal with bad checks in the past, they may ask for other forms of certified payment.

Certified

This type of check is issued by a bank and is, therefore, more secure. It is more widely accepted than a personal check because you can’t get a certified check without having the money in your account.

Of course, this only applies to the time when the check is written.

If you hang onto it for a while and drain your account before the landlord attempts to cash it, it won’t be any good.

Certified checks may be more widely accepted than personal checks.

But there are still some downsides. The biggest one is that it can still bounce if the money is no longer in your account when the check is cashed.

Cashier’s

This check is also issued by a bank. It is more secure than a certified check since a person has to have the money available when the cashier’s check is issued. The bank will often take the money directly from your account to cover this check.

There may also be fees associated with getting a cashier’s check made.

The bank guarantees that the funds for this check are available.

That means that these will probably be accepted by any and all landlords for rent payment. They don’t have to worry about the check bouncing, so they feel confident that they are getting their money

Money order

While not exactly a check, it’s kind of like one. It’s a piece of paper that has a set amount of money placed on it. These can be issued at a bank, the post office, or a convenience store.

Since you physically have to have the money on you to get a money order, the landlord knows that they will be getting their money when you pay with one of these.

Keep in mind that there may be additional fees associated with obtaining a money order.

2. Online

A growing majority of banks are now waiving fees on online bank transfers. In doing so, landlords and property management companies are also opening up to online payments.

Bank transfer

It’s possible to transfer money from one bank account to another to pay for rent.

However, this may not be widely accepted, mainly because a landlord may not want to give out their account information. You may not want them to have your account information either!

Therefore, another option is a wire transfer, which is similar to a bank transfer.

All in all, a wire transfer involves the bank quickly sending money from one account to another. It requires that you have the money on hand to send to the recipient.

Some knowledge of the recipient’s bank information is needed, but not as much. You may not have to give your account information, especially if you use cash to complete the transaction. The bank might also charge you fees.

Thus, not everyone will accept this type of payment. However, this can be a convenient way to pay if you are not in the same country. 

PayPal

PayPal has made it incredibly easy to transfer money from one person or business to another. The nice thing about this process is that your bank account information is kept to yourself, so you know that your details stay secure.

Above all, this can be an easy and convenient way for both you and the landlord to conduct monthly payments.

You can also transact using select credit and debit cards on PayPal which nicely bridges your payment methods with your landlord’s receiving options.

3. Other forms of payment

Some other ways to pay rent include using cash or credit card. Not all landlords will accept these forms of payments because of the risks involved. 

With cash, it’s easy for a wad of bills to get lost and there’s really no way to track it. With a credit card, the landlord would have to pay extra fees.

There’s also the risk of you reporting the charge as fraudulent. Then, they wouldn’t get payment at all.

When it comes to making your monthly rental payment, there is never just one correct way.

And not every landlord will accept every form, but at least you’ve got options.

Those looking to move should consider renting from Blueground, a real estate tech company that makes relocating as smooth as possible. They provide fully-furnished and thoughtfully equipped homes in some of the world’s most sought-after cities for a month, a year, or even longer. 

Blueground offers flexible lease terms and a variety of rent payment methods. For example, wire transfers, card payments, and PayPal.

All in all, Blueground’s tenants are able to process payments entirely online without a visit to the bank. For out-of-town tenants, this can all be processed online ahead of arrival meaning the home is reserved and ready to go on arrival.

Card payments and PayPal payments can also be done in currencies other than the local one, especially handy for those from abroad who have yet to open a bank account or card in the local currency.

Similarly, Blueground utilizes technology to make finding an apartment easy and convenient.

After deciding on your length of stay, book your ideal apartment and then just show up and start living.