When making a deposit or paying rent for an apartment, you may be required to use certified funds. If this is your first apartment (and even if it’s not) you may be hearing this term for the first time. So what are certified funds, and how do they work? Let’s take a look at how to send them, why they’re important and the different options available.
What are Certified Funds?
Certified funds are guaranteed funds backed by a bank or other financial institution. Many landlords and property management companies require renters to use specific types of certified funds early on in the rental process to avoid bounced checks or failed debit payments.
Types of Certified Funds
Depending on your financial preferences and your landlord’s requirements, you may choose one type of certified funds over another.
This is when a bank issues a check on behalf of its customer. Banks will only issue a cashier’s check if you have enough money in your account to cover the funds, which provides an extra layer of security and comfort for the recipient. Some banks charge a fee for cashier’s checks, while others do not.
Money orders can often be purchased from many retailers, such as grocery stores, convenience stores and pharmacies. To obtain a money order, a customer takes cash directly to one of these retailers. That institution then produces a money order for the amount of cash provided by the customer. Some retailers can offer electronic money orders, meaning a customer provides cash and the institution sends a wire transfer to the intended recipient.
A wire transfer is an electronic transfer of money that happens between one institution and another. As with a cashier’s check, banks will only make wire transfers if the sender has the funds in their account already, so this is a guaranteed form of payment, too.
How To Send Certified Funds
There are a few ways to send certified funds.
- To obtain a cashier’s check, you’ll need to visit a bank branch in person, where a teller will help you through the process. You can then send the physical check to its intended recipient.
- Many banks allow you to send wire transfers online, or a bank teller can help you set up a wire transfer.
- To obtain a money order, you’ll need to visit a local retailer. Once in possession of the money order, you’ll physically deliver it to its intended recipients. It is not a good idea to send money orders through the mail.
Start Renting With Southern Management
Southern Management accepts cashier’s checks and money orders for security deposits, application fees and other payments from non-renters. Once you start renting with us, you’ll always have the option to pay with certified funds for rent. You can also use a personal check or online card payment.
Looking for an apartment in the Baltimore or Washington, D.C. metro area? Be sure to check out Southern Management’s apartment communities. We have options to suit every type of renter, and we can’t wait to welcome you home.