When developing a budget plan, rent and utilities are essential fixed expenses for most individuals. Whether renting or owning a home, common bills typically include internet, electricity, water, gas, and phone services.
If bills and rent are also a constant, choosing the most safe and convenient payment solution is a must, especially if you have a busy lifestyle. No matter how busy one may get, paying the bills on time is always necessary to avoid late fees that reflects on your credit score.
Cashier’s Check or Bank Draft
Have you ever encountered a cashier’s check or a bank draft? These are secure forms of paper-based payments that tenants can obtain from their financial institution, such as a credit or bank union.
These cashier’s checks and bank drafts are secure forms of payment that cannot bounce. Financial institutions issue them using their own funds rather than the tenant’s, ensuring the landlord can cash them without risk.
The process is simple. When the tenant gets the check or draft from the bank, the financial institution first withdraws the funds from the tenant’s accounts. As such, the tenant must ensure that they have enough money in their account within the institution to cover the rent amount.
Once the money is withdrawn from the account, the bank will write the check and name the landlord as the recipient. When the tenant sends the check to the landlord, naturally, the landlord will deposit it, and as such, the funds are drawn directly from the bank, not the tenant’s account. This process ensures that the check will be sent out and won’t cash due to insufficient funds.
Indeed, this payment method is entirely secure, but it can be inconvenient for those with busy lifestyles as you would have to travel to the bank regularly. Fitting the visits to your busy schedule can be a stressful experience, but don’t fret since some banks prefer to offer them online.
Certified Check
A certified check “freezes” or holds the tenant’s money in place while the check is cashed. On the other hand, a bank draft completely removes the money to ensure payment. Also, it’s called a “certified” check because the financial institution certifies it with a stamp or signature. Moreover, some banks charge a small fee for these kinds of checks.
The process is straightforward, much like obtaining a bank draft. The tenant visits the bank to request a certified check, and the teller verifies that sufficient funds are available in the tenant’s account before certifying. This certification reassures landlords that the check will clear, as the issuing bank guarantees the funds, making it a more reliable option than an uncertified check.
Have you ever wondered, “can you email a check to a landlord?” If so, you’re not alone! When paying rent, you need to consider the best method—whether it’s email, traditional mail, or delivering it in person.
While a traditional paper check must be physically presented for processing, eChecks offers a digital alternative. An eCheck functions like a paper check but is processed electronically through the Automated Clearing House (ACH) network. Many banks and online payment platforms support eChecks, allowing tenants to send payments securely via email or an online portal.
If eChecks aren’t an option, you can explore other electronic payment methods, such as online banking or third-party platforms like Venmo, PayPal, and Apple Pay, for a faster and more convenient way to pay rent.
Money Order
Money orders are a secure payment option for tenants who prefer not to use personal checks or online transfers. They can be purchased at banks, post offices, and some retailers. However, the tenant’s and landlord’s names must be included to ensure only the landlord can cash the order. This reduces the risk of fraud or misplacement.
Since money orders are prepaid, tenants must pay the full amount upfront, usually with cash or a debit card. This guarantees funds, preventing issues like bounced checks. However, some issuers charge small fees, so tenants should factor in this cost when choosing this method.
Once obtained, the money order can be mailed, handed over in person, or processed through the landlord’s preferred service. While secure, it requires extra effort compared to digital payments. Keeping the receipt is crucial, as it serves as proof of payment and includes a tracking number in case of loss.
Online Payment Providers
If you don’t have the time to physically give a check to your landlord or for your bills, you may want to consider online payment providers, as most banks today have online banking counterparts.
Online banking lets you send and receive money anytime and anywhere without an issue. The most common are PayPal, Apple Pay, Venmo, Cash App, and more. Indeed, paying through an app is convenient for tenants constantly on the go since all you have to do is input your personal information to create an account and get your landlord’s bank details and even your bill provider.
Usually, you can search them through the app to pay directly, and you would have to input what service provider you want to pay.
Choosing the Right Payment Solution
The best payment method is the one that fits your lifestyle while keeping your payments secure and on time. Whether you prefer traditional options like checks and money orders or the convenience of digital payments, what matters most is choosing a method that works for you and your landlord. Just plan, stay aware of any fees, and keep track of your transactions to avoid surprises.