How to Handle a Bounced Check

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Unfortunately it’s a part of being a landlord, but bounced checks happen, and for some they happen quite frequently. There are different rules in each area with how to deal with bounced check, so check your local laws and what tenant resource groups recommend, but the following bounced check tips for landlords may help you get through the process and get the money that is owed you.

Written Notice

Give the tenant written notice that their check has bounced. This can be handled in a number of ways but getting a signature through the postal service is usually the best way as it proves that the mail was received. Include a photocopy of the bounced check with your letter, also let the tenant know how much you have been charged by your bank and that they will be charged those fees as well. Also spell out what steps will be taken if they do not pay in an acceptable or timely manner.

Give Them Time

You can’t expect immediate payment from the tenant, there is typically a couple days leeway between when they see your notice and when they’re expected to make good on the check. Receiving another check does not count as payment until you are certain that check is good.

Still No Payment

If the tenant still hasn’t paid within the grace period then it’s time to take further actions which include beginning eviction proceedings.

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