Tip of the Month - November 2010
PROFITABLY MANAGING YOUR RENTAL PROPERTIES
Source: By R. Dodge Woodson-John Wiley & Sons, Inc.
Bad Check Charges
If your lease contains the proper language, you
can penalize Tenants for bouncing rent checks. A bad check can
cost you money. If you bounce your own check because of the
Tenant’s bad one, your bank will charge you a fee, putting a
crunch on your cash flow. By the time the Tenant makes good on
the bad check, you mortgage payment may be late. If your lease
calls for a steep penalty fee on all bad checks, the Tenant may think
twice before giving you worthless paper.
Tip from Crossett Real Estate Services
If the Tenant’s check bounces, this means
we have not received the rent in the time frame indicated in the
lease-the rent is late and a late fee will apply in addition to any
bank fees on our account, as indicated in the lease-further, our lease
indicates that once a rent check bounces for insufficient funds, we
will no longer accept personal checks-only certified money
orders/certified bank checks/cash will be accepted.
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This web page was updated on 11/12/2010.