In as much as liquid cash is appealing, it is risky to take cash from your tenant as rent. The risk is in accountability and the possibility of it being illicit.
It is not always that we are available to receive, count and document the rent. That is why we have check drop boxes. What happens when your tenant drops only half of the rent and claims he did drop off the full amount. There is no paper or electronic trail.
Source of the money
In this increasingly cashless society, it is rare to find people with wads of cash. If a person is unwilling to pay using a check, money order or ACH then it could be reasonable to suspect that the money could be from illegal sources, dubious business or that the tenant has something to hide.
It is not my responsibility as a Landlord to audit or even care about the source of my tenant’s money but I would rather limit my risk. That is why I am very very cautious when it comes to accepting cash.
The Rentalgrid platform allows users to pay through ACH and Credit cards. The tenant has a portal to track his payments and so does the landlord. That way there is accountability and a traceable trail of movement of money.