Investor · lehigh valley, PA · Member since 2014 · 242 posts · 23 votes
Hello,
Received rent by check and 3 days later check bounced. In my lease it says a $40 late fee for paying late but who should eat the fees for depositing a bad check from tenant? Can I charge them for the bank fee or how do you handle this? Would you charge them a late fee and also a bank fee then? My lease does not say nothing about writing a bad check.
harpers ferry, WV · Member since 2014 · 7 posts · 2 votes
12y
I don't own any properties but seeing as they gave you a bad check more then likely they knew it was going to bounce so I would check my local laws to see what it says but I would assume it's on them.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
12y
My lease says the tenant, in the event of a returned check, shall pay the late fee AND an additional fee incurred for the returned check. Also, if a check is returned, I have the right to no longer accept the tenant's personal checks and require them to pay future rent in cash, money order, or cashier's check.
Calumet City, IL · Member since 2014 · 312 posts · 49 votes
12y
If you have no policy in your lease for this you may have to eat the cost. However if your tenant has some integrity they will reimburse you. I also have it written in my lease that checks returned to NSF are subject to an additional $25 fee.
Investor · Colorado Springs CO · Member since 2014 · 535 posts · 253 votes
12y
Our rental agreements have a separate line about a fee for a bounced check, so if yours doesn't, you may have to eat the cost. You might consider it a lesson learned and add that into your future rental agreements. You might also add a line about being able to require future rent be paid by cash, cashier's check, or money order, as Kyle stated. Check you state/local laws to make sure that's ok.
Investor · lehigh valley, PA · Member since 2014 · 242 posts · 23 votes
12y
yes that will be a lesson learned and will definitely add that into my lease. Guess I never thought a tenant would write me a bad check, LOL. lesson learned.
Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
12y
@Jimmy S. ...Send tenant a notice indication after 3 returned check, only accept cash or money order..it's really an inconvenience to landlord..Most of my tenants deposit cash directly to business checking...less hassle...
Property Manager · Big Bear Lake, CA · Member since 2013 · 585 posts · 330 votes
12y
Definitely put it in your lease. But, in the meantime, tell them that they need to pay you for the nsf fees. They may not even check to see if it is in the lease. If they do, tell them that it is normal for someone that bounces a check to pay the fees. They should pay them even if not spelled out in your lease.
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
12y
I put the amount of the NSF fee as a clause into my lease. Also periodically review that as your bank may increase the fees on an annual basis. There is also a stipulation that if the NSF fee is not paid by the time that the tenant departs, I can withhold it from the security deposit.
Homeowner · Havertown, PA · Member since 2013 · 85 posts · 16 votes
12y
Agree with others -- if your lease doesn't stipulate they are on the hook for fees, then you might have to eat it (assuming they don't do the right thing and offer). But, I would definitely revise in future leases to make sure you are compensated not only the amount of the bounced check fee, but then some to make up for your time spent dealing with the bank, mailing letters, etc.