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Donald S.
  • Accountant
  • Saint Louis, MO
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Tenant lost security deposit check (the refund)

Donald S.
  • Accountant
  • Saint Louis, MO
Posted

Hi Everyone, 

I sent a tenant their security deposit back through the mail, certified mail, with a cashiers check after they moved out. I received notification that it was delivered, and a text from the tenant saying they had it. 2 weeks later (yesterday) I get a text saying they accidentally threw the check away, and they want to know what (if anything) I could do. For some background, this tenant was a real pain in the neck inherited tenant and we were glad to see them go, and gave them a full return of their deposit just to get them out without troubles. I wouldn't put it past them to be lying in some attempt to double dip. 

So I'm asking, what are my obligations, if any in this situation? I called the bank and they said I'd have to call back later and speak with the manager to see if they could do anything, since it's a cashiers check the money's already come out of my account. 

Thoughts?  

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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
  • Rental Property Investor
  • Mercer Island, WA
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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

The bank can help with this.  They know if the check has been cashed or not.  If not, they can cancel it and issue a new one.  There may be fees, which I would deduct from the amount you send to the tenants.

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