California - Rent "paid" when electronic transfer initiated vs Landlord gets $$ ?

[Tricia O'Brien]

Hello BP folks!  

My California tenant has initiated his monthly rent payment ($2100) to pull from his Chase account on March 14 through my Avail PM system, but I will not be receiving it until March 19.  This is 2 days past the end of the grace period.  Can I charge him my late charge which is currently $100 after I get the rent on the 19th? 

The lease says "rent is due on or before the 14th day of each month in advance notice or demand."  Later if says if it is not paid by the 17th of the month, you'll pay a late charge of $100.   The tenant chose the option to pay through Avail instead of mailing me a cashier's check.  He chose a payment date of the 14th of every month on automatic withdrawal .

I called the office of Avail.co earlier today, and they said some states consider the "paid" date to be whatever date the tenant's money leaves the tenant's bank account, not the date the landlord receives the money.  Other states consider the "paid" date to be when the landlord receives the money for electronic payments.  The people at Avail consider the payment timely if it leaves the tenant's account on or before the due date, so I think their reminder emails to tenants revolve around that date :( 

Any California landlords have experience with this situation?

I have the nolo press book, "California Landlord's Law Book: Rights and Responsibilities " but it doesn't address this specific  scenario.  

He moved in March 14, 2023 so this will be his first payment after initial rent and security deposit were paid by cashier's check.

Thanks in advance!

[Nathan Gesner]

Quote from @Tricia O'Brien:

This is a common problem. ACH or Direct Deposit payments typically take three banking days to process. Nobody can explain why an electronic payment takes so long, but that's the reality of our banking system.

I consider it paid on the day the payment is initiated, which in this case would be the 14th. Yes, there is a chance the payment could be rejected for non-sufficient funds on the 19th, but I'm managing 400 rentals and it's pretty rare and the Tenants make good on it 99.9% of the time. Very low threat.

A check is no different. If they hand you a check on the 14th and you put it in the bank the same day, you would consider rent paid, right? But you could find out five days (sometimes longer) that the check bounced! 

The process is the same. When the transaction is initiated, you consider it paid. If the payment bounces, you apply the late fee (if any) and require payment of the full amount in certified funds (cashiers check or money order).