Holding Deposits & Rent Payments
A holding deposit is customary in the case of a vacation rental or short term rental. A holding deposit of somewhere in the neighborhood of 25% of the total cost is generally considered a fair rate.
Rent Payments can be collected in a variety of ways and schedules, depending on whether you’re collecting Daily Rent, Weekly Rent or Monthly Rent. You’ll need to work with your tenant and create a rental contract that defines the rent payment terms.
Payment by Check & Money Order
Receiving payment by check or money order is a traditional way to accept payment for rent or a holding deposit. Depending on the situation, this might not be a prudently expedite method of payment for the situation.
Payment by PayPal
PayPal is a fast way for a tenant to pass a landlord the payment for rent and is particularly convenient for a holding deposit or other situation where the tenant and landlord are separated by a great distance. Of course, both parties must have a PayPal account to complete this transaction.
Payment by Bank Transfer
Tenants and Landlords may choose to arrange that the funds be exchanged by a bank to bank transfer. This is generally considered to be a safe method of transferring funds in most situations.
Payment by Western Union & Money Transfer Options
There are various Money Transfer service options, including Western Union and Moneygram. While there is a risk in sending money via this type of service because it is not possible to recall once it has been sent, Landlords are receiving the funds and therefore not at risk.