Tenants Paying in Cash - Landlord Forum thread

Tenants Paying in Cash by The Dude (MN) on June 21, 2012 @08:49

Do any of you allow this on a regular basis? I can see the occassional reason to do so, but reading the poster below's story about a tenant who ALWAYS paid in cash makes a bit leary. Why would a tenant want to pay in cash every month? They're 99% of the time up to no good and likely using my place to run their operation. There's a reason they don't want the cash to touch a bank account or make their currency traceable in any way. I'll admit it could be a case of paranoia that "big government" is going to take down the entire banking system and their money will disappear, but that's the 1% I guess.

I've had 3 tenants in the past who paid solely by cash. All 3 were arrested during their tenancy for drug dealing. Since then, I've had a strict rule about not paying in cash, for those reasons and just the lack of traceability of it. I can give them a receipt, but they can claim I forgot to give them one that month. Also, as a tenant, couldn't you just say "I didn't get a receipt from him that month and I didn't think anything of it to press him for one." and claim you paid? Too many possibilities for a he said, she said type deal.

Anything I'm not thinking of? I know you'll say, "Hey, if I'm getting paid, I don't care how it's happening!". But you probably should care, lest you get a call from the police or IRS in the near future.

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Re: Tenants Paying in Cash by Bryan (Ia) on June 21, 2012 @09:26	[ Reply ]

I have absolutely no problem with a T that wishes to pay in cash. I simply give them a receipt, each and every time. There is no concern about them claiming I didn't give a receipt "that time". It is the Ts responsibility to demand a receipt and exchange the cash for the receipt. Courts see through the attempt to claim "no receipt" easily. I had a T that always paid by cash until the day he pulled out of the drive, headed down the road, had a heart attack and died.

Re: Tenants Paying in Cash

Re: Tenants Paying in Cash by Jake on June 21, 2012 @11:13	[ Reply ]

A landlord needs to ask himself if he wants cash or a vacancy that can be filled with a bad check writer.

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Re: Tenants Paying in Cash by NY-LL on June 21, 2012 @11:22	[ Reply ]

Legitimate tenants with credit issues, judgments and repayment agreements pay in cash. The unsecured creditors and debt collectors often place liens on accounts even while paying as agreed. The complications of owing debtors, post divorce or otherwise, sometimes leads to debtors double dipping into accounts without authorization. Chances are if the prospective tenant has stable (5+ years) employment, the likelihood of illegal activity is minimized.

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Re: Tenants Paying in Cash by Micah on June 21, 2012 @11:48	[ Reply ]

When I was young I was living hand to mouth. I paid my rent in cash because that way I wouldn't have to worry about accidentally bouncing a check or buying checks to use only for paying rent (that was the only bill that I couldn't pay online). I worked in a restaurant and most of my pay was in cash. I worked 2 blocks from home and the bank was 3 miles away... My landlord worked in the building abutting mine. The one thing I told my tenants is never leave cash in my mailbox, only give it to me in person. It's only happened to me 3 times since becoming a LL and it was because they didn't want to risk a late fee or bounced check waiting for their deposit to clear. Up here in Maine a lot of the economy switched back to cash after the crash a few years ago.

Re: Tenants Paying in Cash by Anonymous on June 21, 2012 @13:26	[ Reply ]

Legally, you can not reject cash - its US legal tender, intended to pay all bills, rent included. Our cash clearly says that "This note is legal tender for all debts, public and private. You can request payment with small bills or payment of another kind, but explaining to a judge why you reject cash for a legal financial obligation would be dicey at best.

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Re: Tenants Paying in Cash by Anonymous on June 22, 2012 @04:39	[ Reply ]

Many if not most lower income tenants pay in cash. They either don't have bank accounts or they ruined their ability to open one. As for cash, what cash? That unit was vacant don't ya know.

Re: Tenants Paying in Cash by Anonymous on June 22, 2012 @15:34	[ Reply ]

I don't allow it. My lease is very specific about the form of payment being made through the electronic payment service that I use. Cash and checks are a hassle.

Re: Tenants Paying in Cash by Anonymous on June 23, 2012 @04:49	[ Reply ]

If they pass a background and credit check I could care less if they pay in cash. I have had a couple of tenants who paid in cash and I know they had stable jobs. If they can't pass a credit check then I don't want them no matter how they are going to pay. I give them a receipt and if they lose it then too bad so sad. You can also get receipt books where they also have to sign so you have a carbon copy of the receipt with their signature on it. You are obviously not doing credit checks if you are concerned they are dealing drugs to make their money. Do your due diligence and if they pass then take the money however it comes.

Re: Tenants Paying in Cash by Clina (Wi) on June 26, 2012 @15:29	[ Reply ]

I don't like cash payments because they have to come to my residence to give it to me and I find it a nuisance and I just don't like them coming to my home. I also don't see why getting a money order is so difficult and then drop it in the mail like they are supposed to do according to the lease.