The Best Way to Pay Rent: Personal Check, Cashier’s Check, or Money Order

There are a variety of ways to pay rent. Whether you choose to pay by personal check, cashier’s check, money order, or ACH, the most important thing is that you pay on time. You don’t have to stick to just one, either — it’s also possible to use a combination of these methods to fulfill your rent obligations. If you’re unsure of what is the best way to pay rent, check out the pros and cons of each below:

Personal Check

Paying by personal check may be a convenient way to pay rent, however, some landlords may not accept personal checks or may cease acceptance after a certain number of bounced checks (depends on the state laws). Not sure if you should pay by personal check? Here are the pros and cons:

Pros:

1. No convenience fees. The only thing you may need to pay for are postage stamps, unless you drop it directly at the office or in a rent box.
2. Fast and easy. Most likely, you have a stack of checks in your wallet or sitting at home in your desk, enabling you to fill out your check anytime you would like and deliver it at your convenience.

Cons:

1. Risk of losing a check. Should the landlord lose your personal check, your bank may charge a fee to cancel it – not to mention that you will also have to write a new check and potentially pay a late fee.
2. Delayed deposit. Similarly, if your landlord delays in depositing your personal check, you will have to leave those funds in your account to prevent it from being returned for insufficient funds.

Cashier’s Check

A cashier’s check is a check drawn by a bank on the bank’s account. To obtain such a check, the customer must have either cash or make a check payable to the bank have them draw one up in their name. This means it will be the bank’s name instead of your own appearing on the bottom of the check.

Pros:

1. Little to no risk of bounce. The benefit of using this type of check for your rent payment is that it’s guaranteed by the bank. When printed, cashier’s checks usually come in the form of a carbon copy, making record-keeping easy.
2. No fees. Because you’re getting this through the bank, there is no fee associated with getting a cashier’s check.

Cons:

1. You must come prepared. Banks often require the customer to hold accounts at the bank or provide cash to obtain a cashier’s check. Also, if they are lost, it could be difficult to have another one drawn. In this situation, your landlord will still need to be paid, meaning you may have to draw another check while waiting for the resolution of your claim for the original check.
2. Less Convenient: Because you must visit the bank in person, this isn’t always a convenient option, especially with banks’ minimal weekend hours.

Electronic Bank Transfer

More landlords now accept electronic bank transfer as a rent payment method. Some may even be requiring it to avoid fraudulent checks and money orders or to avoid losing paper payments. Some states (like NY and CA) have laws in place to protect renters’ rights to ensure anyone can pay by any method they choose, but not all. You may want to do some research about your state’s laws before signing your lease agreement.

Pros:

1. Convenience: Some management companies/landlords have rent payment portals and apps to add your bank account information and even set your rent and utility payments to auto-pay, ensuring you never forget to pay – ie no late fees!
2. Easy receipt of payment: Checks and money orders can get lost in the mail or in the hands of the office employees, but paying online ensures receipt of payment without the chance of losing a piece of paper.

Cons:

1. Extra Fees: To recoup fees that banks charge the landlords for this process, your landlord might charge you a convenience fee to use this process, tacking more money onto your rent payment.
2. Funds Required: If you write a check and don’t have the money in the bank (yet), you might still have enough time to get it there before it gets deposited.

Money Order

A money order is an order for the amount the purchaser wishes, payable to the recipient at any time. Money orders are available at grocery stores, convenience stores like 7-11, and post offices, but for a small fee. They are generally not the most convenient way to pay rent, but are often required if a renter bounces too many checks with the landlord.

Pros:

1. Guaranteed. Money orders are guaranteed because the funds have been paid in full at the time of purchase.
2. No stress. For landlords that dally in cashing checks (and run the risk of messing up your finances), a money order may be the best way for a tenant to pay rent.

Cons:

1. Risk of having to pay. If a money order is lost, there is no record to reference. You may be at a loss for the funds and need to present additional payment to your landlord.
2. Limitations. There are often limits on the amount of funds each check can present, such as $500.00 or $1,000.00. In this instance, you will have to purchase multiple money orders should your rent be more than the amount you can purchase in an individual one.

Pay Your Rent in Confidence

Prior to signing a lease agreement, ask the landlord about their preferred method of rent payment. It may be possible that they don’t accept one of these forms of payment, or they may offer a unique payment method. Some landlords offer automatic payments via check. You simply stop into the office, provide one check, and they hold the bank information on file for automatic payments.

As of 2024, here are some laws by state as to how renters can pay rent. Additionally, make sure to pay attention to what your lease states regarding rental payment types. Should your landlord decide to change their rent payment type allowed in the middle of the lease, you may be within your rights to continue using the rent payment type on your signed lease agreement until your lease contract is expired.