How can a tenant with no bank account pay rent, and what should a landlord accept?
The common answers are a money order, a cashier's check, or cash deposited straight into your bank account at a branch with the tenant's name and unit written on the slip. Each one works if you write it into the lease, give a receipt, and keep a record that ties the payment to the unit. Not having a bank account is not rare: the FDIC's 2023 survey found 4.2 percent of US households were unbanked, so a landlord with enough tenants will meet this question. This is general information, not legal advice.
How common is it?
The FDIC National Survey of Unbanked and Underbanked Households reports that 4.2 percent of US households were unbanked in 2023. That is a national figure, and it varies by city, income and age, so your own tenants may be above or below it.
A tenant without an account is often a tenant who is paid by cash, by check or on a card. They are not necessarily a risk. What changes is how the money reaches you, and how you prove it arrived.
The options, side by side
| Method | How it reaches you | Main thing to watch |
|---|---|---|
| Money order | Tenant buys it, hands it or mails it to you, you deposit it | Check that it is complete and signed; keep the stub number with the payment record |
| Cashier's check | Same as a money order, issued by a bank | Fake cashier's checks exist; deposit it and let it clear before you give anything back |
| Cash deposit at your bank | Tenant takes cash to a branch of your bank and deposits it to your account | Ask the tenant to write the unit and name on the slip and send you a photo of the receipt |
| Cash in person | Tenant hands you cash | Always write a receipt on the spot; some states limit when you may refuse cash |
Whether you can refuse cash or require a particular method depends on your state and on what your lease says. Read our post on refusing cash rent and check your state's rule before you write a "no cash" clause.
What to put in the lease
- Name the accepted ways to pay and the address or bank where each one goes.
- Say when a payment counts as received: the day you get it, or the day it clears.
- Promise a receipt for every payment that is not electronic.
- Say what happens if a money order or check is returned, and which fee, if any, applies in your state.
The third item matters most for a tenant who cannot show a bank statement. A receipt is their only proof they paid, and a dispute about a "lost" money order is much easier when you both have the same number on paper.
Recording it so it matches your books
Every payment you get by hand has to be matched to a tenant and a month by hand. Write down the date received, the date deposited, the amount, the method, and the money order or check number. Deposit it within a day or two, so the date on your bank record is close to the date on the receipt.
Example a made-up tenant pays $1,150 rent with a money order dated the 1st. You deposit it on the 3rd. Your ledger should show rent received on the 1st (the day you got it) and your bank record shows the 3rd. If the lease says rent is paid when received, the ledger date is the one that counts for late fees.
Who pays the fees?
Money orders and cashier's checks usually carry a fee that the tenant pays when they buy them. Some landlords add a small fee for handling non-electronic payments. Whether that is allowed depends on your state's limits on fees beyond rent and on what your lease says. If you are not sure, leave it out: a tenant with no bank account already pays more to move money than a tenant with one, and a surprise fee on top is the kind of thing that ends up in a complaint.
How DoorKeeping handles it
Rent goes to your own bank, not through DoorKeeping. Tenants pay your own bank, and DoorKeeping reads your bank feed and matches each deposit to a tenant by the memo (like 12B SMITH) and an exact amount with its own cents. A money order you deposit yourself shows up in the same feed, so you can match it the same way. DoorKeeping charges no payment fee, so a tenant who pays by hand does not cost you extra either.
Sources
Questions
- Can a landlord require a tenant to have a bank account?
- Some leases ask for electronic payment, but a few states and cities limit when a landlord may refuse cash or insist on a single method. Check your state's rule before you require it.
- Is a money order safer than a personal check?
- A money order is prepaid, so it is less likely to bounce, but forged ones exist. Deposit it right away and keep the stub number with your record.
- What if the tenant loses the money order?
- The tenant can usually ask the issuer to trace it and replace it for a fee. Your receipt and the stub number make that much easier.