Payment with bad check

[jillianleab]

What is the name of your state? Virginia

I posted recently about bad tenants I have who never pay on time. I have another question regarding the same tenants.

Every month I have to file a 5-day pay or quit notice in order to get them to pay, and every month they pay within that time frame. Normally, that is not really a problem. This month, they paid with a check, which later bounced. They offered payment in cash, which I accepted because I wasn't sure if I was able to refuse payment from them.

So, I have a few questions which I have been unable to asnwer myself looking at my states landlord tenant agreement (VRLTA). If I file a 5-day notice, can I insist payment be made in certified funds or cash? If not, should I accept the payment with reservation, and give the tenant a letter stating as such? If so, what specifically should the letter say? Also, if I am obligated to accept a check, and it bounces, am I required to accept cash making up for the bounced check, or is it considered the tenant still has not paid, and I can pursue an unlawful detainer? According to the VRLTA, if a tenant pays with a bad check, I have to give them 5-days notice to pay me in certified funds or cash, but does that still apply when a 5-day notice has been filed? And, as a side note, this tenant banks at a credit union which has no locations within 50 miles of my home, so taking the check to his bank and cashing it is not an option. Finally, my last question, can I insist the tenant pay me ONLY in certified funds or cash from this point on, since this is the second check they have given me that has bounced? I don't think that's an option, as I don't see reference to that in the VRLTA, and it's not a condition of their lease, but maybe someone here knows something I don't.

Thanks for your help, everyone. Maybe one day I will have properties full of tenants who pay on time and don't cause trouble Well... I can hope.

 

[moburkes]

I'd write them a letter that, due to their history, their payments must be in the form of a postal money order, cashier's check, or cash.

 

[jillianleab]

Am I within the law to do that? It would certainly solve part of the problem (them floating checks), but I want to make sure if I end up in court I've done everything on the correct side of the law. I just want to make sure as nothing in the VRLTA says I can demand payment in cash or certified funds, and nothing in their lease says it either. Is this a commonly accepted landlord/tenant practice that won't make me look like "the bad guy" in court?

 

[BL]

http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-248.2

F. If rent is unpaid when due, and the tenant fails to pay rent within five days after written notice is served on him notifying the tenant of his nonpayment, and of the landlord's intention to terminate the rental agreement if the rent is not paid within the five-day period, the landlord may terminate the rental agreement and proceed to obtain possession of the premises as provided in § 55-248.35. If a check for rent is delivered to the landlord drawn on an account with insufficient funds and the tenant fails to pay rent within five days after written notice is served on him notifying the tenant of his nonpayment and of the landlord's intention to terminate the rental agreement if the rent is not paid by cash, cashier's check or certified check within the five-day period, the landlord may terminate the rental agreement and proceed to obtain possession of the premises as provided in § 55-248.35. Nothing shall be construed to prevent a landlord from seeking an award of costs or attorneys' fees under § 8.01-27.1 or civil recovery under § 8.01-27.2, as a part of other damages requested on the unlawful detainer filed pursuant to § 8.01-126.

 

[jillianleab]

I'm familliar with that part of the VRLTA, but it does not indicate if I can refuse payment on future rent payments if made in the form of a check. I know I can refuse a check if the tenant is repaying a bounced check, but what about next month, the month after? Am I within the law to insist that given their history, ALL rent payments from this point on must be made in cash or certified funds?

 

[beetwise]

you come up with a bounced check policy and do an addendum to the lease, follow notification per § 55-248.7 G.


I've never had a lease that didnt specify that if I bounced a check, checks would no longer be accepted.