Property Manager · Passaic, NJ · Member since 2008 · 369 posts · 83 votes
This is now 3 times I have accepted cash for either security deposit or rent and have gotten burned. I'm sticking to money orders!!! $300 in counterfeit bills - the bank took it - photocopied it so I could have a copy and told me to go back to the tenant. Well of court the tenant says "the bank gave me the bills when I cashed my paycheck so its not my fault".
Financial Advisor · Tampa Area, FL · Member since 2008 · 956 posts · 214 votes
17y
jon is correct, MOs can be easily forged as well.
i would get a pen. they work well. the bank that took the bills is required to send them to the secret service.
to be honest, it would be VERY, VERY difficult to prosecute. there is really not a way to prove (legally) who gave you the bills.
even mike seperating the bills would not protect him. billions of $$$ of currency exchange hands, there is no way to prove that those are the bills they gave u.
as is with a check, the person that deposits can be held responsible. even if being held 'responsible' means justnot getting credit for the funds.
if u really want to be safe, get a mobile blacklight currency detector. they work wonders!
the LAST thing i would do is not accept cash. u are far more likely to get a fake MO or rubber check than counterfeit cash. while u may have more recourse with the check/MO, there is more risk of not getting paid.
Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
17y
Yep! I use a counterfeit pen on all the cash I receive! In addition, I keep the money segregated so that I know which tenant gave me which bills.
Did you contact the police or secret service about the counterfeit money? I WOULD and I'd be squealing like a stuck pig! Are you evicting the tenant - paying with counterfeit money isn't paying at all!
Financial Advisor · Tampa Area, FL · Member since 2008 · 956 posts · 214 votes
17y
jon is correct, MOs can be easily forged as well.
i would get a pen. they work well. the bank that took the bills is required to send them to the secret service.
to be honest, it would be VERY, VERY difficult to prosecute. there is really not a way to prove (legally) who gave you the bills.
even mike seperating the bills would not protect him. billions of $$$ of currency exchange hands, there is no way to prove that those are the bills they gave u.
as is with a check, the person that deposits can be held responsible. even if being held 'responsible' means justnot getting credit for the funds.
if u really want to be safe, get a mobile blacklight currency detector. they work wonders!
the LAST thing i would do is not accept cash. u are far more likely to get a fake MO or rubber check than counterfeit cash. while u may have more recourse with the check/MO, there is more risk of not getting paid.
Property Manager · Passaic, NJ · Member since 2008 · 369 posts · 83 votes
17y
See you guys are all right but I'm not taking the cash anymore. I normally only take it towards security for a new tenant, not in the regular course of monthly payments. Its a little hard to argue - $300 is bad out of a $1500 security deposit. The last time this happened the bank took the bills gave me a copy and stamped them. I gave them my contact info - no one ever contacted me to investigate or even tell me the results of their investigation. Perhaps I should persue it but its basically my word against the tenant's. The last time this happened I got burned for a couple of hundred on security. I tend to believe the tenant - they didn't know - they were good payers for many years.
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
17y
For me, personal check works the best. If you accepting a tenant and don't trust him/her enough to give you a good check, this tenant should've been accepted in the first place. It is also a test for things to come and easier to point finger. If the check bounces, you know ahead of time that you have a problem.
Property Manager · Passaic, NJ · Member since 2008 · 369 posts · 83 votes
17y
You're right Eddie and I do take personal checks for rent. However I always had a standing rule - cash or money order only for first month and security. I can't trust any of these people until I get to know them - most of my tenants are low income or receive rental assistance. Its extremely hard to judge a person from a face to face meet. They all seem so nice and sooooooo smooth..............
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
17y
Originally posted by Ingrid Nagy:
You're right Eddie and I do take personal checks for rent. However I always had a standing rule - cash or money order only for first month and security. I can't trust any of these people until I get to know them - most of my tenants are low income or receive rental assistance. Its extremely hard to judge a person from a face to face meet. They all seem so nice and sooooooo smooth..............
For me Ingrid, the first month and the security deposit are the biggest tests. I hear you regarding the low income and rental assistance, but if someone bounce a check from the get go, he /she is not getting stay in my property even one night.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
17y
Do you wait for the check to clear, Eddie, before you let them move in? Seems like most people want to move in the minute they hand over the money. If it bounces after that, you have to evict and you have nothing at all.
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
17y
Originally posted by Jon Holdman:
Do you wait for the check to clear, Eddie, before you let them move in? Seems like most people want to move in the minute they hand over the money. If it bounces after that, you have to evict and you have nothing at all.
Most of my cycles are the first of the month contracts, so usually, there is at least a week before tenant gets in. I must admit that so far I didn't have any problems and I never had a first check bounced on me.
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
17y
Originally posted by Marc Freislinger:
Checks can be stop ordered up to 30 days after you cash them.
Learned that one the hard way.
I'm not sure what does it mean. If you cashed it, you cashed. You have the money now, not the bank. Also, stop payment on a check can be construed as "bounced" if goods or services were given for it.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
17y
It means its possible for a bank to reject a check even after you've cashed or deposited it. If you stuck it in your own bank account or cashed it at your bank, they would just take the funds out of your account. This is how all those overseas scams work. They send you a "cashier's check". You deposit it, and everything seems OK. They get you to wire them back a small portion of the check because it was accidentally too much (many variations on this theme). A few weeks later your bank says the check is a forgery and deducts the full amount from your account.
Real Estate Investor · Vancouver, British Columbia · Member since 2009 · 44 posts · 11 votes
17y
I used a new type of direct money transfer similar to a wire but was incredibly easy in comparison. The transfer is an interac transfer in which you go on your own internet banking site...select interact (email money) transfer. You type in recipients email address and which acct you want the money taken out of. The transfer is a same day transfer and cannot be reversed or stopped. Ask your local bank about it. This was a Canadian bank transfer however US banks should be offering a similar transaction.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
17y
In THOUSANDS of rents over 30 years , I've never been burned and never will.
Step 1- For the deposit and first months rent, I meet the tenant at THEIR bank and they hand me a cashiers check at the counter and I cash it.
Step 2- Monthly rent. They deposit it into MY account with a deposit slip. If they deposit cash, I don't care- banks responsibility. If check, I don't care either.
For those of you that are dealing with tenants that can't do both of the above, this method won't work. Rich in TX
p.s.Even if they don't have their own bank, Step 1 works the same. They show up with cashable funds.
Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
17y
In THOUSANDS of rents over 30 years , I've never been burned and never will.
Step 1- For the deposit and first months rent, I meet the tenant at THEIR bank and they hand me a cashiers check at the counter and I cash it.
In other words, you only take cash for the deposit and first months rent! The only difference is that you go to their bank and my tenants bring the cash to me when they sign the lease.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
17y
I don't have to be a counterfeiter review person is a difference, imo. I'm at no risk. I stand by my process, and it is very little work and requires ZERO oversight. Those might be differences. Rich in TX.
Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
17y
It does indeed, Rich.
But the trade-off is time. I've tried meeting tenants at various banks which are often not close-by, and unless you are following them they are always late.
Luckily for me I've never had a problem with counterfeit anything. But that's why I'm here on this site - to stay ahead of the curve and learn. Whatever scam is out there will end up here sooner or later.
And I'm still waiting for that Ambassador who emailed me from Nigeria to forward me my lost fortune......
Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
17y
The good news is that carrying a counterfeit pen doesn't take up a lot of space in the truck. Moreover, I'm not sure that spending 5 seconds swiping the cash with a counterfeit pen really qualifies as being a Counterfeit Review Agent, however I do like the title. It sounds a lot more important that simply being a landlord! LOL!
If I'm going to be a Counterfeit Review Agent, I'm gonna need a badge! One more thing to carry. UGH!