Bounced Rent Check - Sacramento/Elk Grove, CA

[Elena T.]

Good morning,

This morning I was notified by my bank my tenants rent check bounced. This is the first time I've encountered this. After reading our lease agreement, my husband and I realize we need to add additional clauses. 

For now, this is what we are going to do:

- Call tenant, notify her of the situation, write letter as well

- She'll be charged the late fee and bounced check fee

- Set-up an inspection to come an view the property this week

Questions for the BP community:

- How long can we need to legally give her to pay the rent?

- In the lease it states payment by: personal check, money order or cashier's check. Can we now require a money order or cashier's check only?

-What do need to do to protect ourselves in the case she does not pay-up?  I noticed we did not state in the lease that failure to pay was grounds for termination, only a negative report to the credit bureau. She is almost nine months into her 48 month lease.

_ Any other advice would be much appreciated. We've been landlords for nearly 3 years. Our last tenant was "picture perfect" and we have had only one other issue with this tenant, a late rent check, but she notified us a week in advance that the check was going to be late and gave the late fee in advance.

I hope everyone is having a good day!

Elena

[Elena T.]

Thank you everyone for your input. (Sorry for the delay, I was out of town and enjoyed being disconnected for a few days!)

Since my original post, the following has transpired:

1. Called the tenant to inform her of the bounced check.

2. Wrote a letter to her, stating the events that took place and sent her a copy of the documents I received from my bank, via certified letter. In the letter I requested this months rent paid by cashier's check or money order.

3. Spoke with client who states she was the victim of a fraud which has resulted in several overdraft charges.  She  and I talked about her plan of how to pay for Augusts rent and that this will most likely cause Septembers rent to be late too.

Yes, 48 a months is a long lease, but keeping the property occupied is important. I didn't panic, not in the financial sense. And I can carry this mortgage for about 5 more months without it dipping into my personal funds. 

We have an inspection scheduled for this Friday to go view the property and check in with her. After our face-to-face and our assessment of the property, I may wave the late fee for Septembers rent. I understand things happen, and I've been on the other side before. As I stated before she has been a good tenant, late once before, but we were informed well before it was do and had her plan of action, which she followed to the T. I would like to give her the benefit of the doubt, but as they say, "fool me once, shame on you; fool me twice, it's all on me."

I like the idea of on-line, automated payments and will look into that. 

Again, thank you for your responses.

Elena