Bounced Rent Check - Sacramento/Elk Grove, CA

[Elena T.]

Good morning,

This morning I was notified by my bank my tenants rent check bounced. This is the first time I've encountered this. After reading our lease agreement, my husband and I realize we need to add additional clauses. 

For now, this is what we are going to do:

- Call tenant, notify her of the situation, write letter as well

- She'll be charged the late fee and bounced check fee

- Set-up an inspection to come an view the property this week

Questions for the BP community:

- How long can we need to legally give her to pay the rent?

- In the lease it states payment by: personal check, money order or cashier's check. Can we now require a money order or cashier's check only?

-What do need to do to protect ourselves in the case she does not pay-up?  I noticed we did not state in the lease that failure to pay was grounds for termination, only a negative report to the credit bureau. She is almost nine months into her 48 month lease.

_ Any other advice would be much appreciated. We've been landlords for nearly 3 years. Our last tenant was "picture perfect" and we have had only one other issue with this tenant, a late rent check, but she notified us a week in advance that the check was going to be late and gave the late fee in advance.

I hope everyone is having a good day!

Elena

[Jim T.]

First of all, do not waive the bounced check fee. If it was the bank's error, even an identity theft, the bank will reimburse the late fee to the tenant. Your policy needs to be firm. And why should you cover the fee, it wasn't your fault.

You can now require the rent be paid with cash or electronic transfer because of the bounced check. You may not want to do that but I would at least remind the tenant that you would do that should another bounced check occur. 

With a 4 year lease, I think regular inspections are a good idea. They may be a good idea in general but especially with long leases. This is a good opportunity