We recently received a final payment from a Tenant via money order. The tenant was financially problematic for most of their lease to include eviction being filed on them 3 times. Each time, the Tenant was able to come up with enough money to pay for the filing and bring their account to an amount the Owner found to be acceptable prior to possession hear date. The Tenants lease ended January 31st. January 22nd the Tenant came in to make a final payment to include yet another eviction filing and 2 or so months of rent. The payment resulted in the Tenant having a balance of $0 and they moved out on the date they said they would to include bringing the keys in to the office. Today we received notification that the Tenant placed a Stop Payment on the money order thus leaving their account negative by $2400+. Surely this is not the first time this has happened. I believe the assumption made by most PM's is that money orders and certified checks are overall "safer" than personal checks as most lease agreements forbid personal checks as an acceptable payment method. I contacted the bank to see what can be done and was somewhat surprised when they told me other than calling them to get them to issue payment again, I couldn't do anything.
So my question is has anyone else dealt with this successfully? Much to everyone's surprise, I'm sure, the Tenants phone is now off and no forwarding address has yet been provided (doubt we will get one at this point as the Tenants response typically was something about staying with a friend for a while or maybe their mother or grandmother).
Any advice or help would be much appreciated.
@Derek Gendig , wow. So money orders can be stop ordered without the return of the original check? Very surprising! Sorry I am no help in solving your situation but a good reminder to the rest of us to not count the money til it is deposited.
As a property manager, we run into situation likes this often. While this is my first MO stop, it has happened with Credit Cards and e-payments. Worst part for us is not only having to communicate to the Owner that it has happened but in the case that we have already sent the funds out as an Owner Distribution, we will need the funds to be returned. Hello Rock, Hello Hard-Place :)
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