Tenant pays cash instead of balance transfer

Hi folks,

Just wanted to check if a tenant pays rent via cash into bank account rather than a internet banking transfer. Is that acceptable. Will I as a landlord face any issues during Tax time?

Appreciate your response.

Melv.
 
Can't see a problem with it as long as you keep your records.

My real concern would be that you're relying on the tenant to make the cash deposit on time, rather than an automatic transfer.
 
The problem with receiving cash is proof that they paid and timing etc. You should issue written receipts to meet state law regarding tenancy receipts. One day there will be a rent dispute about what date they are paid to. Its good practice to show the date received, amount and the period of rent covered by the payment.

If a tribunal issue comes up the rent book will be your evidence that you used a systematic process and keep good records.
 
A tenant depositing over the counter is no different to a direct deposit/internet transfer made by the tenant. The tenant has the butt of the deposit as his receipt/proof of payment, you have the notation in the bank statement.

Direct crediting of payments has relieved the owner/manager from the duty of having to issue receipts as there is a payment trail which can be searched. The failures which can occur on the tenant side (not keeping the receipt/incorrect notation on the deposit) or the lessor not crediting the correct account.
 
Back
Top