- This topic has 45 replies, 13 voices, and was last updated 7 years, 2 months ago by Coronita.
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July 27, 2017 at 10:23 AM #22382July 27, 2017 at 10:53 AM #807289no_such_realityParticipant
JIMHO, I’d take my lease, the bounced check to a lawyer and see if there’s an effective out, such as lease goes into effect when rent and security is paid (which it hasn’t been) and cancel the contract.
Again, JIMHO, bouncing the move in money is a non-starter.
July 27, 2017 at 11:38 AM #807291mattParticipantMajor red flag
July 27, 2017 at 11:47 AM #807292plmParticipantI checked the lease, here is what is says:
Tenant shall not be entitled to possession of the premises designated for lease until the security deposit and first month’s rent (or prorated portion thereof), less any applicable promotional discount, is paid in full and the premises designated for lease is vacated by the prior tenant.
So it seems like its ok for me to withhold keys until I get paid. I know there are numerous red flags but we’ve met them and they do seem like really nice folks.
From a business stand point, I agree, we should run away from this but I think we can still do the lease as long as they come up with the money.
July 27, 2017 at 12:31 PM #807295CoronitaParticipantdefinite red flag imho. I always request a cashier check and or at least a bank check for the security deposit plus the first month rent. But since you went the personal check route, I wouldn’t continue with the lease. I wouldn’t care if it’s an honest mistake.
BTW: you aren’t alone. Apparently this happens a lot.
https://www.thelpa.com/lpa/forum-thread/297410/first-month’s-rent-and-security-deposit-bounced.html
July 27, 2017 at 12:32 PM #807294spdrunParticipantLease is invalid without initial payment. You dodged a bullet. Tear up the lease, tell the nice folks to take their nice selves elsewhere. Not your problem. If they can’t get the initial payment right, what makes you think they’ll pay on time in future and you won’t have problems with rubber checks?
At the very least, demand a few months up front to give you time to evict them if they make a habit of not paying.
July 27, 2017 at 12:33 PM #807296CoronitaParticipant“Also is it safe to give out your bank account number for renter’s to direct deposit?”
Hell no.
Most bill pay services do not require this these days. Chase is part of this new thing called Zelle Quick Pay. US Bank is also part of this.
No account numbers need to be given to people.
July 27, 2017 at 1:14 PM #807298spdrunParticipantYes, it’s safe. Just create a secondary account for deposits. I had my tenant running to the bank every month and depositing a check herself for years — I just gave her 12 deposit slips with the lease.
July 27, 2017 at 1:25 PM #807299plmParticipantLots of good advice. I should have asked these questions before agreeing to the lease. I’ll see what happens but I haven’t ruled out renting to them if they come up with the money.
The bank account number I’m not sure what they can do with it. Every check you write, the other person gets your account number anyways. But this Zelle Quick Pay seems the way to go in the future.
Thanks
July 27, 2017 at 1:47 PM #807302ucodegenParticipantI second those saying that the lease is invalid. Transaction is pending the completion of the security deposit – which did not occur in a timely manner.
Did you run a credit check on these people? I would just move on to the next potential tenant. Bouncing on the first transaction is not a good idea, shows a potentially poor tenant – who you will have to be continually chasing down for rent. If this is in California – avoid this person. They can play the declare bankruptcy/non-appearance game to make eviction for non-payment nearly impossible.
Not safe to give bank account number (add routing number and guess at most recent check number – and forge away your account). Besides, if they already had the cash – the security deposit would not have bounced. That means that mentioning ‘direct deposit’ is a red herring.
July 27, 2017 at 2:17 PM #807290HobieParticipant+1 NSR
If they can’t work out a check then this may be futile, but set up a separate bank account just for wire transfers only. Keep min amount in only to keep open. This way there is no access to your main $$ accounts. Treat it as a holding account and transfer funds out asap.
July 28, 2017 at 12:51 AM #807326YupParticipantIn this hot rental market, WHY would you even consider these sub-standard renters?
They are already working you over by making you hustle to fix a problem they created. Don’t expect this to change. Once they get the keys, they have possession and all the rights our lovely state confers to renters.
If these are friends-of-family or someone you just must rent to as a personal favor to Uncle Bob, then do yourself a favor and consider doing month-to-month which will at least give you some eviction leverage if they don’t pay the rent.
I’d highly recommend that you consider joining the San Diego County Apartment Association, as they provide training on tenant screening.
July 28, 2017 at 10:42 AM #807334plmParticipantNo credit check, there was some issue where it couldn’t be done. But did verify employment.
Will provide cash when they move in so security deposit will not be an issue.
Not sure rental market is hot or maybe its the time of the year now. After initial surge of around 20 people, it slowed down quite a bit.
I know I should treat this as a business but I think its good to give nice people a second chance.
July 28, 2017 at 11:16 AM #807335CoronitaParticipant[quote=plm]No credit check, there was some issue where it couldn’t be done. But did verify employment.
Will provide cash when they move in so security deposit will not be an issue.
Not sure rental market is hot or maybe its the time of the year now. After initial surge of around 20 people, it slowed down quite a bit.
I know I should treat this as a business but I think its good to give nice people a second chance.[/quote]
Being nice versus possibly getting screwed are completely different issues.
What you should do is require a credit check now. There’s absolutely no reason why you can’t do a credit check it’s easy with Experian tenant check. They pay for it, they keep the record, and they can’t complain about giving you their SSN because the way it works, they won’t… AND since it’s all through experian, they can’t fudge the actual credit report, unlike a paper copy (which some people do.)….
https://connect.experian.com/credit-check/tenant-credit-check.html
Also, you keep saying they will pay cash when they move in… Ugh… I hope you meant…They will pay cash BEFORE they move in.. There’s no reason why you can’t demand for all the payment upfront before they actually move in. And given their track record already, i think it’s perfectly reasonable to.
No money, no credit check, no lease. And the last you should be worrying about is being able to rent out the place. Even if rental is softening, it’s much better you have it vacant, versus letting someone live there for free and going through eviction if it gets to that.
Hopefully we’re all wrong about this, but imho you are way too trusting. Im not even that trusting, and people tell me I get suckered in all the time.
I have a colleague that rented a place to a professional in CarmelV. There couldn’t get payment on the deposit from a check, to the guy brings cash for the deposit and first month rent…Now it’s the 3rd month, and the person stopped paying after the initial cash deposit+1st month rent.
Sorry, this sounds like a case in which it would make sense if you turn this property over to a property manager. If you are having trouble saying “no” before the move in, I can’t imagine what predicament they are going to put you in the moment they pay you late, or don’t pay you at all. And then you’re going to be posting here asking advice for “how do I deal with a difficult tenant that stopped paying”….If you can’t firmly tell your tenant “you are late paying, you owe me a late fee” or “pay be cash before moving in plus I’m going to pull your credit now”, you owe it to yourself to find a property manager that has no problem doing that. Plus, a tenant is much more likely to abide if they know they are dealing with a property manager with experience versus a mom/pop operation that is sort of “nice” and wishy-washy in enforcing basic payment/rent terms. It’s just how it works.
I have one tenant that use to send it rent late all the time. And every single time I gave him a warning about a late fee. Finally I got fed up with it and started enforcing the late fee. Guy hasn’t been late since.
And how the hell do you bounce a check? Are people really living by a shoestring that they can’t cut a rent check if they miss one payroll week? That too should be a red flag.
July 28, 2017 at 11:17 AM #807337plmParticipantYes, totally agree with you Flu. I’m way too trusting and have too much compassion to treat the rental as a business. If it gets to be a problem, I will hire a property manager.
I’m not that trusting though. I will get the cash before I give them the keys.
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