When do you consider rent paid?

[Dwaynne Meuth]

Do you consider rent paid when the Tenant initiates an electronic payment or when the funds are credited to your account and available for you to use?  I believe that the lag time between when the Tenant initiates the electronic rent payment and when the funds are available for use in my account can vary depending on when it is paid (because of bank holidays) and what electronic method is used to make the payment (i.e.  ACH, Zelle, RentRedi, Zibo, etc.).  

[Jerel Ehlert]

Under UCC Art. 4 and 4-A, the payment obligation is suspended when the obligor (tenant) initiates the transfer and is discharged when final settlement occurs between the transferor and transferee banks.  If the obligor's bank rejects the funds transfer request, the obligor's payment obligation is no longer suspended and becomes late as if the funds transfer never happened.

Simply put, when the tenant makes payment on their end.  So long as the payment goes through, if payment is made prior to the date rent becomes late, it is considered "on time" regardless of when you get it in your account.

If there is a malfunction in the system, tenant is not responsible (see 15 USC Sec. 1693j).