All Forum Posts by: Arktavious Sally

I take checks for security deposit. Everything has to clear PRIOR to them taking possession of the house, however. That means I take security deposit and first/last month's rent and any other fees up front, cash them, and then give it 4 days to clear. Any bounces and they're gone. If they can't pay to get in the place, i can't trust them to pay rent.

Once everything clears, they get the rental deposit receipts and the keys.

RE: taking a check for the rental application. I take them. I do the background check, etc. and will even meet to sign a lease, and take security, first/last, etc. However, if that check bounces, they're out and the lease is null and void b/c they violated the rental applciation policy, which requires payment of the fee. That makes my lease null and void too. And they're gone with no second chances. Again, if they bounce a check on a rental app, they're no good. And NEVER GIVE THE KEYS until everything's been deposited and you've had 4 days after that for the payments to clear.

The best way to defend yourself against problems with this is to have a written tenant screening policy and provide it to every applicant. It lets them know if any check bounces during the process that they're automatically disqualified. If people think you'll check and won't give them keys until everything's cleared, they don't waste their own time.

Most people don't have a written policy and as a result, tenants think they can wiggle their way into a property before you'll catch the problem.

If you want a very solid free Tenant Screening Policy, PM me or email me. My company had one developed a while ago and it's great. No reason not to share.

-Jeff