Direct Deposit Drama

[Dana R.]

What are the tricks and traps that tenants can use when they pay directly into your account electronically?

Currently, I use electronic direct deposit because I like not having to deal with late rents.

But, now, I'm facing a issue that makes me question if I should continue using it.

My tenant made a repair without my permission and wants to deduct $500, the cost for repairing the garbage disposal, from January's rent.

I told them not to do it because that is not allowed in the lease and that I first needed to see the invoice.

But, the tenant's response was it was too late because they had already paid for January's rent and deducted that amount from the rent.

My next action would've been to return the payment and inform the tenant that I would only accept full payment of the rent.

And, if the tenant had sent a check for not the full amount, I could refuse to cash it in.

Or, if the tenant paid in cash for not the full amount, I could refuse to accept the cash.

But, I had an electronic direct deposit set up. It goes directly into my account.

Doesn't that mean I accepted their money, even if its partial?

It seems like direct deposit might open a can of worms when the tenant pays only part of the rent.

Can't tenants use such a direct but partial payment tactics as a way to forestall and evade eviction?

[Elizabeth Colegrove]

You have to know your states rules. What I would do, is accept it, tell them its partial. If the amount different isn't receive by due date you will deduct the late fee will begin and you will start eviction process. Check out you other post I went into more detail :)

While I have never had to do it with my 9 tenants (although I have had plenty of other fun), the companies I worked for did this all the time.