Rent check was lost. Who is at fault?

Question

Hey BP Community! I recently ran into a bizarre scenario with a tenant of mine and wanted to get everyones input

A few months ago, my tenant (who pays on time and keeps the place very clean) calls me to tell me that their Zelle (my preferred online method of payment) is not working for whatever reason

I told her it is no an issue and that she can write me a check - I expressed that a certified check is better

She made out the check to my company and sent me a picture.

A few days go by and I still haven't heard from her about picking up the check.

Turns out she was under the impression that just by getting the certified check that it was going to hit my account. She didn't know that I have to physically deposit it

I told her to leave it in the mailbox and I would be around at a certain time. I stopped by at a late time and there was no check in the mailbox, decided not to call because it was past 11pm

Next day we decided on another time for me to pick it up

I show up at the time and there is no check. Mailbox is empty

Long story short... It was extremely windy that day and the check literally flew away. I can't make this up

I told my tenants to contact their bank ASAP and file a claim. I also told them that they need to provide us the money for rent for that month as it was already late.

I was reasonable and told them, that this situation sucks and that it is very unfortunate, but unfortunately I do not have rent for this month. I offered a payment plan to make it easier

Their response: "Money is not the issue, we have plenty of money. I'm not paying for 2 months of rent"

My partner called them and they agreed that once their dispute is resolved and they get their funds back they would immediately send us the payment for the missed money.

Its been over 4 months and we still haven't received rent

What would you do?

Nathan Gesner · Answer

No offense, but I'm 99% sure you've been suckered.

The Tenant can go to her bank and stop the check so it can't be cashed. She would still have the money in her bank, she could cut you a new check, and all would be well in the world.

You waited four months to ask this question? Have you received rent for the other three months, or has she played this game four months in a row?

Russell Brazil · Answer

1) Certified funds only for 1st months payment handed to you. Dont use certified funds for subsequent months for this specific reason, if the check gets lost, the person is out those funds for a very long time. A personal check can be cancelled easily for a small few.

2) Do not have people drop checks in mailboxes. First, its illegal for them to do so. Only USPS workers can place items in a mailbox. Second, people steal from unlocked mailboxes.

Id say no one is at fault here per se, shit happens. But if theyre a good tenant and they are telling the truth, work with them.

Charles Carillo · Answer

@Alan Asriants

Contact your attorney, and start the eviction process. In the past, when tenants have told me stories, I never got paid. Now, when the stories begin, the 3-day notice to quit is delivered to them. That lets people know that you are serious.

Regarding the cashier's check, they can go back to their bank with their receipt or possibly without even that, and have them reissue it. I have done this a couple of times myself.

I would only accept cashier's checks from this tenant in the future.

Mackaylee Beach · Answer

It's great that they are still being responsible and paying all upcoming rent.Have they provided you with the status of the check claim? I would request confirmation that claim was filed and a estimated time of return.

I would also try working payment arrangement with them again.

Alan Asriants · Answer

Unfortunately cashiers check works like cash. When its pulled out, its pulled out of the account.

The benefit to a cashiers check is that they are certified funds and won't bounce

getting the money back is a process that requires a claim. You are right, 4 months is a bit too long

Nathan Gesner · Answer

Alecia, why are you killing yourself for this tenant?

They are $650 below market? That's $7,800 you are giving away every year, which is the cost of a new furnace, new flooring, half a new roof, etc. Landlords should stay close to market rates so they can afford to maintain the investment. If you are wealthy and want to give to charity, I know some much better options.

Same with the unpaid rent. They haven't paid you for seven months. Why are you giving them three more months to pay it instead of demanding payment immediately, in full, and with certified funds?

Personally, I would give the tenant a demand for payment in full, along with a notice that their lease is terminating. Get them out, clean the place up, rent it for market rate to someone that can afford it. You deserve better!

Alecia Loveless · Answer

@Alan Asriants I am in a very similar situation with a rental check from February where the rent check was supposedly “returned” by the post office to the tenant. This tenant also always pays late but this month she did make a $50 payment towards the unpaid rent.

I am sending out a letter both by certified and regular mail in the morning to her with a written payment plan stating it must be paid 1/3, 1/3, and 1/3 less the $50 over the course of October, November, and December and that If the rent is 1 minute after the grace period on her lease she will be getting a 3 day notice to quit and the eviction process will begin. I am done with her games.

You could either try something similar if the tenants have been otherwise decent tenants or just cut to the chase and begin your state’s eviction process over failure to pay rent.

In my case I can also rent the unit for about $650 more a month if it turns over. So I’m of the mind to get strict on this and if she pays that’s nice but if not it’s now down to being strictly a business decision.

Nathan Gesner · Answer

My wife keeps telling me I don't know everything. Turns out she was right!

Still, I wouldn't accept this. Your Tenant could have requested to stop the check, 90 days would have elapsed, and you would have collected your money a month ago.

Another option is for your Tenant to contact the issuing bank. That bank can confirm if the check was cashed or not. If not, your Tenant owes you the money.

In my opinion, rent is not paid until it's in my hands. Putting it in a box doesn't count becuase you can't control the weather or thieves.

If it were me, I would put pressure on her to prove that the check was cashed. If it was not cashed, I would demand she stop payment and issue a new payment. If she refuses, I would wait until her lease ends, terminate, then apply her deposit to the unpaid rent and move on.

Alan Asriants · Answer

@Charles Carillo

This is why I do Zelle or online payment. No running around and no finger pointing. It’s clear when the money is there or not

Theresa Harris · Answer

Talk to them and find out where the bank is at with the check.  I would not have had them leave it in an unsecured area.  they should have sent it via registered mail to you.

Rent check was lost. Who is at fault?

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