Investor · Greenville South Carolina and Lihue, HI · Member since 2016 · 68 posts · 14 votes
Tenants' check was returned for NSFs. Property manager said they turned in paperwork to officials that if tenant didn't make the check good within so many days she would be arrested!
In all my reading on BP and numerous books on REI - I've never heard of this approach being used.
Wow the only person I could ever imagine doing this is on this site. Everyone else would handle it as their lease says. Essentially there is a bounced check fee of XYZ and the timer is still going on late fees. Then when late issue pay or quit and continue down the road until satisfied.
In my opinion that is an empty threat from your PM and just makes the whole operation look like a bunch of drama queens.
Texas has a similar "Hot Check" law that some landlords use so maybe this is a similar law in SC. That would be my best guess but the PM should still start the eviction proceedings also as other people already suggested. Please update us if you find out more information from the PM about what law they are referring to. Thanks!
Important parts there are "with intent to defraud", and "The law prohibits anyone from using the criminal process to collect a debt". So first you have to prove it was done on purpose to defraud you, (good luck with that) and then even if you are successful with prosecution nobody is forced to pay anything or leave the rental unit.
These laws are mostly aimed at people who write a check for goods at a store they know they can't back up. It's basically another form of shoplifting. Very hard to apply to a rental situation.
Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
9y
"The link posted above shows civil penalties state by state...that is not criminal, and no, they cannot be arrested!"
If you read the entire link it also shows criminal penalties below the civil ones.
At any rate, I'm going to guess from what Karen has further posted that this was done as a legal "kick" in a manipulative tenants hind quarters that such behavior will not be tolerated.
Investor · Tampa, FL · Member since 2015 · 293 posts · 175 votes
9y
Sounds almost like the PM googled what to do when a tenant bounces a check in SC and found some laws. They are probably so confused. Charge the NSF fee, rent goes back to delinquent with late fees. Collect and move on. If they don't pay in a few days evict.
Tenants' check was returned for NSFs. Property manager said they turned in paperwork to officials that if tenant didn't make the check good within so many days she would be arrested!
In all my reading on BP and numerous books on REI - I've never heard of this approach being used.
I recently evicted a tenant in NC who wrote me two bad checks. They were arrested and charged with felony fraud as the amounts totaled over $2k. Didn't even have to hire a lawyer, filled out a few papers with a magistrate and mailed the tenant a demand letter. If they don't pay within 14 days warrants are issued. The officers went straight to their place of work and arrested them.
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
9y
Was there intent to commit fraud on the part of the tenant? Did the tenant do the things that fall under the SC bad check law? Did the property manager do all the things required to be able to use the SC bad check law? Seems to me to be extra unnecessary work for the property manager to try to use that law. Also, it seems hard to prove the tenant had the intent to commit fraud.
As the property owner, what are your thoughts about how your rental agreement is worded and what it includes or does not include? I would start there. Then watch closely how well your property manager works with tenants and how well they enforce the terms of the rental agreement.
What do you really know about the tenant? Only what the property manager tells you? I looked at the Greenville County Sheriff's Office website and there is no "bad check division".
Is it really worth involving the Sheriff's office or beginning a court process when serving a South Carolina 5-Day Notice to Pay or Vacate might suffice to get your rent (or at least position you to be able to file for unlawful detainer?) Why didn't the PM serve that?
What's the rest of the story as to why you and/or your property manager want this tenant out? Doesn't add up. If you jump right to serving the South Carolina 30-day Notice to Vacate the tenant is not likely to pay anything more and will have 30-days more in the property, which is 30-days more opportunity to cause trouble. If they unlawfully detain, after the 30-days, then you will be in even worse shape.
You and your property manager need to know more about landlord-tenant law than your tenant. And you need to know more than your property manager. A good property manager would not be leading you astray. Sounds like they are. You need to know more about what is really going on.
Rental Property Investor · Greenville, SC · Member since 2015 · 19 posts · 20 votes
9y
Karen,
Hope your situation is successfully resolved. Stick to the advice you've received in the thread. In my opinion, the criminal charges are only useful in practice as leverage (aka a threat). And, threats are worthless at the end of the day. Stick to the basics.
Do you mind sharing the name of the PM for those of us around the Upstate?