Tip of the Month - November 2010


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.