Thread: Debate: Does anyone refuse cash as a payment method?

A common practice in the apartment industry is to require tenants to pay in either check or money order only, no cash is accepted. The multi-family housing industry adopted this practice many years ago due to concerns over potential robberies of management staff.

Does anyone currently have this policy? If so, why?

Is this policy workable for self-storage?

What are the advantages and disadvantages?

Do you prescribe acceptable payment methods in your rental agreement?

Why would anyone not accept cash? Cash doesn't bounce and cash doesn't require a fee to be paid to the credit card companies for accepting it.

The other problem is that most storage facilities sell packaging...so even if you went to a no-cash policy for storage, are you going to make walk-in customers write a check or use a card for a $1.70 small box?

Does anyone currently have this policy? If so, why?
- I love cash , and a good number of my customers pay in cash only, even in large amounts. Of course I go to the bank every day and leave no money ever here in the office.

Is this policy workable for self-storage?
- Not in my opinion.

What are the advantages and disadvantages?
- Advantages: easy payment options for customers.
- Disadvantages: seems elitist and unfriendly.

Do you prescribe acceptable payment methods in your rental agreement?
- yep.

Originally Posted by Tom Litton

A common practice in the apartment industry is to require tenants to pay in either check or money order only, no cash is accepted. The multi-family housing industry adopted this practice many years ago due to concerns over potential robberies of management staff.

Does anyone currently have this policy? If so, why?

Is this policy workable for self-storage?

What are the advantages and disadvantages?

Do you prescribe acceptable payment methods in your rental agreement?

We accept cash here..but .... my recently hired asst. mgr came from a well known chain storage facility that did not accept cash. They didn't have to worry about being robbed, but he also said they didn't have to worry about their employees dipping into the cash drawer!!! Bit of a trust issue, you think?!!!

My take on it, if I turned down cash, and they left the office, I probably would not see them come back w/a money order, they would probably spend it on something on the way to get the money order!!!! lol

Pat
High Point, NC

mmmmmmmm, cash! I agree with all of the above...it's still the most reliable form of payment!

The saying "Cash is King" became popular for a reason. I usually warn people that want to pay cash, that they need to be diligent on coming back to pay cash on time the next month. People that pay with "plastic" never pay late fees.

Question


As Cash is a legal form of tender for any transaction is it legal to refuse to take cash?

If the cash is printed in California and has the Guvenator's face on it, I think you're ok legally to refuse it Wayne!

I'd rather take my chances on accepting Monopoly money.

Seriously, great question and I think the answer is No, you cannot refuse to accept legal tender. You hear the stories all the time of people paying huge bills due in pennies, so I guess that lends credence to your question.

Oh Mr. Jeff? Where is our legal guy?

We don't, I was told explicitly when beginning work here not to, I've found it to be very annoying.....and to be honest a bit offensive since the reason that this "rule" exists wasn't / isn't for the protetion of myself and my family from potential robbery/being shot as I assumed (and I belive that 99% of all honest/normal hard-working self-storage Managers such as myself would too).....BUT, when I stated this in agreement and understanding to the Owner/Secretry when reminded of this "rule" I was met with "Oh, no NOT for THAT reason (robbery), It's Just TOO TEMPTING to have all that cash around!"...I was VERY offended bythat, I told them that I AM the LAST person that they need to worry about theft from. IF I needed money that badly (which I don't) I would definetely not go about acquiring it in that manner! Still am offended a bit over all of that, I mean I undersand they've been burned A LOT by the prior Managers here, but I'm a totally different person, and I am ME.

Wayne brings up a good point. Interestingly enough, there is no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment of goods and/or services. Private businesses are free to establish their own policies on whether or not to accept cash unless there is a State law which dictates otherwise. If you once accepted cash and have now changed your policy, you must give tenants a reasonable amount of time to adjust. Moreover, if you refuse to accept cash, you should state as such in your rental agreement.

With that being said, there are many disadvantages to not accepting cash. For one, your merchandise sales are out the window. As stated here, there are many other disadvantages as well.

The apartment industry and even Southwest airlines does not accept cash. The apartment industry for rent and Southwest for incidental purchases of food and beverage during flight operations.

For those of you in border towns such as El Paso and San Diego, it is a good idea to state in your rental agreement that payment must be made in lawful money of the United States since occasionally pesos are offered as potential payment.