PayPal, Make It Stop!

14 Replies

Against my better judgment honored a tenant request to make rent payments via papal. The tenant has been a model tenant for over 5 years. Never any problems. The request was made 2 months ago. Now, I am, for the first time in my real estate career of more than 10 years, evicting a tenant, this tenant.

Yes that's right. 5 years a tenant anyone would love to have and then boom, eviction.

Any way, my question is, How can I make it so this tenant can no longer attempt to pay rent via PayPal? The tenant made previous payments with my email address, which I have now removed from my account and replaced with another email address. The tenant still has my mobile phone and office phone numbers and as I understand can use those for payment.

I want to make it so this tenant can no longer make payments to me on that platform and I can find nothing on the PP platform that allows me or tells me how to do that. I suppose I could just close my account but I'd rather not do that.

Thanks in advance for any advice. For anyone who doesn't already know, never allow rent payment via PP even if you think you trust the tenant. Such a request should be viewed, I now know, as a red flag.

Interesting question..... have you reached out to PP directly?

This is a concern with several of the electronic payment services..... they don't allow you to block someone or block partial payments etc.

I don't use pay pal for rent, but i'm interested to see if you find a solution, since its not unique to PP alone

Tenants in the process of being evicted try to 'muddy the water' for the magistrates in an effort to delay the eviction process. The guy I evicted tried to pay me one penny hoping that because he made 'a partial payment' the judge would give him another month. (the payment didn't go through and would have been unlikely to work in any event.)

The reason for the eviction is the rent was due on the first and has not yet been payed, 13 days over due.

Additionally it appears she has moved out and sublet the house to other party(s). There are unknown individuals occupying the house, the locks have been changed, and the tenant who leased the house and previously lived there is nowhere to be found.

Our lawyer says post a 30-day notice to terminate, unless the rent is not payed in which case post 3 day notice. I need to get them out of there ASAP.

A problem is, this is one of the first properties we rented out (10 years ago) and we just used a generic lease agreement template for our Landlords Association. We used it for the first tenant of 5 years and when they moved out we just used it again with this tenant. The lease contains a clause which give the tenant 7 days from issuance of notice to correct. We were unaware of this (though we should not have been...duh) and lawyer said have to give that notice and wait the 7 days before posting a 3 day notice.

So the 7 day period ends tomorrow and I want to move ahead with this. 

Ahh.  I see.  We are a little more landlord friendly here in Kansas.  If I post a 3 day notice and they don't pay in full by the end of 3 days I can evict.  So if they pay in full on day 4 I can collect and still evict.  If they pay all but 1 penny by the 3rd I can still evict.

It's my understanding that we can post a three day notice and then evict if needed when the rent is past due by even a day. And, as I understand it, once the three day is posted we can refuse rent payment and if we do accept payment the process stops.

Our problem at this time stems from the clause in the lease that gives them 7 days from the time we notify them of default to correct it before we take further action. We gave this notification 6 days ago.

I don't have to tell you that going forward, that lease template is not going to be used!

In any event any action we take is at the lawyer's direction.

Our lawyer basically says well, there's how the law is written and then there's how the law is interpreted and applied by each individual court. While the major points are interpreted and applied in accordance with the law by all courts throughout the state, some of the more ambiguous points are not always applied consistently from court to court. He knows this Magistrate's rulings quite well and while he disagrees with some minor things, he said he won't argue a ruling on an insignificant, inconsequential thing because the Magistrate consistently rules in his client's favor (of course in accordance with the law) and some of these Magistrates and judges can be kinda like little tyrants...

Well now it doesn't matter because I just looked at my PayPal and the money got deposited. Somehow. And this before our 7 days notice to correct expired. So now we go ahead with the 30 day notice to terminate.

I really wanted to get process started because I have a house in the possession of unknown persons and it's my duty to get them gone as soon as possible.

A question I have for the lawyer now is, 30 days from when? From now or from when the current monthly lease expires. In other words what is the date I put on the notice for them to be gone?

So this topic is no longer relevant to this sub forum and I'll end it here. Take away...No PayPal!

A final thought; it's kind a of a shame the tenant decided to implement her own little passive-income strategy here because now she will likely have an eviction attached to her and she will be paying my lawyer's fees and costs of restoring any damage to the property and related losses. I hope she got a healthy risk premium between what she charged them and what she paid us. She's going to need it and then some!

@Donald Crockett

Maybe I missed something. Is she in a MTM lease? If so, why not just terminate lease? If she isn’t, I would evict for the many violations, but keep her money she’s paying. Not sure why you’re blaming PayPal for any of this.

@Donald Crockett ,  PayPal allows you to return any payment to sender.   Just click the link.  The fact that she sent money to you through PayPal does not mean that you accepted.

It is a month to month lease, hence the 30 day notice to terminate. Not blaming pay pal at all. Just wanted to be in control of weather I accept rent or not. As I said, it is my responsibility to regain control of the property as quickly as possible and I wanted to do that with a three day notice rather than a 30 day before being able to file for eviction. I have learned since posting that I can return it. I said "No Paypal" and all that because it removes an element of control from me and places it in the hands of the tenant, or so I thought.

Thanks or all the replies!

Originally posted by @Donald Crockett :

The reason for the eviction is the rent was due on the first and has not yet been payed, 13 days over due.

Additionally it appears she has moved out and sublet the house to other party(s). There are unknown individuals occupying the house, the locks have been changed, and the tenant who leased the house and previously lived there is nowhere to be found.

Our lawyer says post a 30-day notice to terminate, unless the rent is not payed in which case post 3 day notice. I need to get them out of there ASAP.

A problem is, this is one of the first properties we rented out (10 years ago) and we just used a generic lease agreement template for our Landlords Association. We used it for the first tenant of 5 years and when they moved out we just used it again with this tenant. The lease contains a clause which give the tenant 7 days from issuance of notice to correct. We were unaware of this (though we should not have been...duh) and lawyer said have to give that notice and wait the 7 days before posting a 3 day notice.

So the 7 day period ends tomorrow and I want to move ahead with this. 

 So this is a lesson learned thing. My lease specifies that I will always have a set of keys that work for the unit in if not I am authorized to change the locks. It also states that the least individual must pick up the keys from me during normal business hours in the initial it and or talk to you about it because I had one individual change the locks and I will never not have access to my unit. 

 As far as the PayPal thing make sure to keep copies of the lease and previous payments and anything else because when they contest the previous payments and you can’t prove that you were supposed be paid hopefully you didn’t do it via friends and family because then you’re out of luck.   I only except one type of payment electronically and currently haven’t had any issues but there’s always that one time that something will happen.    If it wasn’t for the fact that I want to be able to scale my business I would only except cash years checks or money orders   

You may have been better served  if you had posted in the landlord or legal advice Forum, but none the last to answer the question  I think  it's as simple as sending money back to the tenant if they send you money and documenting it that you rejected it. What would you do if they sent you a partial payment in the mail via check? Simply mail it back. If they pay you in PayPal, pay them back, or cut them a check.