If a prospective tenant wants to pay rent with a money order only, is that a red flag for a landlord or property manager? Veteran landlord and property manager Hank Rossi, who is both a rental property owner, landlord and property manager himself, takes on this question.
Dear Landlord Hank:
We have a new prospective tenant who passed all the background screening and has good references. Our only pause is that she wants to pay rent each month with a money order. Do you see any red flags in that?
Dear Landlord Jim:
We try to have our tenants pay ACH or electronic fund transfer from their bank account to ours.
That’s fast, secure and always there on due date.
I’m happy to take money orders or personal checks. Never had a problem with a money order although there are some scammers passing fake money orders.
When a new tenant is moving in though, I tell them they are welcome to pay deposit and rent with a personal check as long as there is time for check to clear.
Sometimes tenants move in quickly and there is no time-then we do bank wire or cash.
Anyway, I see no red flags with money orders for monthly rent payments.