How does this work - Tenant's Partial Rent Payment

[Steve Smith]

Fellow BP Colleagues,

Requesting your thought provoking guidance on the following hypothetical situation in California:

• The tenancy is month to month and per the signed agreement, the tenant must deposit monthly rent in the Landlord's bank account.
• Tenant did not deposit the monthly rent and the landlord starts the eviction process.
• Tenant decides to deposit partial rent into Landlord's bank account and tries to circumvent the eviction.

What I have read, once the Landlord accepts the partial rent, the eviction process cannot move forward.

How does one define "acceptance" of partial direct deposit to Landlord's bank account when Landlord does not want to accept the partial payment and wants to proceed with eviction? Of course, the bank will accept the deposit from the tenant. And, of course, the landlord can close the account as the eviction process takes its journey

What are the proven and effective ways to convince court of law that Landlord did not accept the payment. One option is to showcase the letter refusing to accept the partial payment, with the copy enclosed the partial rent check, which was sent back via USPS mail with certificate of delivery to the tenant? 

Are there any prudent ways to not accept the partial deposit with direct deposit to the bank? Requesting a tenant to direct deposit a failed strategy at the cost of convenience?

[Kyle J.]

@Steve Smith  You are wise to ask this question now because if you allow tenants to deposit rent directly into your bank account, and you ever had to serve them with a 3-Day Pay or Quit Notice, you would need to know how to respond if they subsequently deposited partial rent.  In California, accepting even a partial rent payment after the service of a 3-Day Pay or Quit Notice would void the initial notice and cause you to have to serve a new notice. 

Since I also allow tenants to deposit rent directly into my business bank account (as one rent payment option), I used to wonder about this exact scenario.  So I asked my landlord-tenant attorney (who is VERY experienced having decades in the business and personally handled tens of thousands of eviction cases) how it should be handled, and here is what he advised:

- As soon as you notice the partial/unwanted payment, write the tenant a "refusal letter" stating that you are refusing their payment and ask them how they want it returned.  (Note: You don't have to include the payment in the letter. You just have to let them know you are refusing their payment.)

- If the tenant responds to the letter and requests the money back, return the money to them (write them a check).

- If the tenant doesn't respond to the letter, that's their problem.  Just bring a copy of the refusal letter and proof that you mailed it to court.