should i accept tenant check?

Question

Tenant moved in dec 1st, was 2 weeks late with Jan rent. I then

posted 3 day notice on door and was overnighted the rent money order,

with a note saying starting feb 1st, rent will be paid with personal check not money order, as I ahd verbally requested initially, but did not put in lease .

Should i take the check, even if it is on time? i wouldn't know if it bounced until a few days later. can i refuse the check and say i will only accept m.o.?

thanks!

Marci Stein · Answer

I like your clause in lease a nd am sorry i did not include that in mine,but I

definately will come lease renewal time! thanks.

Rob K. · Answer

I have this clause in my lease:

"Partial payment of rent will not reduce late charges. Resident/Tenant further agrees to pay $35 for each dishonored bank check. Time is of the essence and failure to pay rent in accordance with these terms and conditions set forth shall constitute a default of the entire Rental Agreement. Rent must be paid by certified funds only, if any rent check is ever returned ‘Non-sufficient funds’."

I have gotten a couple of bad checks. My bank charges $15 if a check is bad and I charge the tenant $35. It's a PITA, but I make $20 if they write a bad check and they (hopefully) learn a lesson.

Marci Stein · Answer

thanks evryone...their bank is near the house-2 hours away in a small town.

guess i will have to confirm verbal agreemnet in certified mail letter and send back check!

Matthew Paul · Answer

A bad check is better than nothing , If someone passes a bad check you now have a criminal action .

Liam Goble · Answer

I have two tenants who don't have bank accounts (total madness, I know...who doesn't have a bank account), but apparently there are millions of people who are 'unbanked'.  T-Mobile is rolling out a service for the unbanked.

Anyway, I allow my tenants to deposit cash into a checking account at my bank.  Am I crazy for doing that?

Joel Owens · Answer

My time is worth money. If you have ten tenants writing different checks at different banks then a day of productivity is gone. NO CHECKS - NO CASH

Cashiers check for paper trail. You can amend the lease to include this provision. At that point the tenant may balk.

If they have so much money balance in their bank account the bank will usually give them a cashiers check for free without charging them to pay you. If not they might pay 3 to 5 dollars for it depending on where they live and what is charged for bank services.

You run the show as the landlord not the tenant.

Gerald K. · Answer

I Agree with Pam R.  and Bryan L. - if you do end up with a personal check, you could go to his bank to cash it - no waiting - but this could end up a hassle if you have to drive across town to do it.

Gerald K. · Answer

It's better to have it in writing. If it went to court, it becomes harder to prove a verbal agreement. You could write a letter confirming the verbal agreement you have with him - send it with certificate of mailing to show when it was mailed.

Also, what does your lease say? Does it say anything about landlord may, from time to time, make changes to the form and delivery of rent? Does it say anything about rent being paid by cashiers check or money order or by that method if personal check bounces?

Do you have late fees or any incentive for the tenant to pay on time? If so, you should be enforcing them right away. Train the tenant in the beginning that you mean business, otherwise they will train you. You should post the 3-day notice to pay or vacate quickly - preferably no later than 1 week late.

The tenant has to follow your rules. He can't tell you what he's going to do and expect you to do what he wants. Sounds like he doesn't have the money in time for a money order, so he's telling you he'll pay by check. Not the kind of tenant I would want. It's possible the due date for rent could be adjusted to accomodate his wage payment, but who knows.

Pam R. · Answer

I agree with Bryan - take the check to their bank. If your lease allows them to pay by check, you can't change the terms now. Although I would post your Pay or Quit notice the very day they are late in February. It's not a good sign they are significantly late and suddenly want to pay by check.

We accept checks - but now I'm thinking I need to update my lease that if a check bounces, only money orders will be accepted.

Bryan L. · Answer

Take it to THEIR bank and have it cashed.  The won't cash it if it's not good.