Rent payment grace period
Hello folks,
Okay, here's an issue I would love people to provide input on. In our rental agreements we give a 5 day grace period before late fees and pay or quit notices are generated. We only accept payment through a dedicated sweep account so tenants can either walk cash in to the branch, pay by check at the branch, or execute a BTB transfer. We do not accept any form of payment made directly to us.
Our regional bank was just bought by a much larger bank, and our accounts were ported over to this new nationwide bank. Previously, tenants who paid on the 5th at a local branch had their payment posted to our account immediately so that (a) we could see that they paid, and (b) we were given provisional credit on that money that we could use to pay for debt service, etc.
This new bank now processes payments much more slowly, and this has created the following concern illustrated in this example:
Tenant pays rent the morning of the 5th (a Saturday), but the money wasn't available to us until the 8th. This is not as favorable as our previous bank, as we must wait this cooling off period which further extends the period where that rent money is not usable by us.
So, to those of you that have grace periods, when do you consider the rent "paid?" The date their check is deposited (regardless of when those funds show up in your account), or when the funds are available (e.g. "if you are paying after the 3rd, payment must be in cash.")
I'm curious as how people handle this, as well as any unforeseen consequences of this new financial arrangement we have yet to experience.
Thank you in advance!