first month's rent and security deposit bounced

first month's rent and security deposit bounced by Melissa (Ohio) on July 11, 2013 @19:51

I signed a lease last week to begin the first of next month. I was given a check for the first month's rent and the security deposit. today my bank informed me that the check bounced. I still have not turned over the keys (the agreement was to hand them over on the 1st when the house is ready.)

My lease states that the contract goes into effect when the lease is signed AND the first month's rent and security deposit are received. So, since i didn't receive any money, there is no lease.

Anyway, she was very apologetic about the situation and said it was due to the job transfer and would like to send another check, plus the nsf fee. I did verify her new employment, pay and rental history (which was all good.)

I'm not sure if I want this person renting, although if I don't accept her, she probably cost me a month's rent by the time I get another tenant signed.

would you accept another payment attempt? cancel the deal? demand a cashier's check?

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Re: first month's rent and security deposit bounced by Micah on July 11, 2013 @20:16	[ Reply ]

Cashiers Check for the next few months....

Re: first month's rent and security deposit bounced by Anonymous on July 11, 2013 @20:24	[ Reply ]

Pass! If she is willing to give you a worthless check now, which is a very LOW thing to do, what else will she feel entitled to do later? Of course, you should have done what many landlords do, is require non-refundable holding fee and all funds be paid in certified funds up front before the lease is signed and the keys are given. Because she was so very inconsiderate to you, you could have kept a portion of the funds for your lost rent. Best to cancel.

Re: first month's rent and security deposit bounced by Al (CT) on July 11, 2013 @20:34	[ Reply ]

If you feel like this was an honest mistake due to her recent changes in jobs and finances, then there's no harm in giving her the benefit of the doubt, especially since she said she'd get you payment plus the NSF fee. Good tenants do make mistakes, and if she checked out in every other way, just tell her that you will only accept payment in cashier's checks or money orders, which, by the way, is the only way you should be receiving move-in funds anyway.

Re: first month's rent and security deposit bounced by Anonymous on July 12, 2013 @01:30	[ Reply ]

I would check with her previous landlord, AND the one before that, AND THE ONE BEFORE THAT, to make sure she's not running a scam! A rental history is more than just the last landlord. If she has a regular bank, it's odd that they don't have a branch that would confirm that her check was good. I'd be VERY CAREFUL about this one.

Re: first month's rent and security deposit bounced by Anonymous on July 12, 2013 @02:56	[ Reply ]

I would not give them the keys. Count yourself lucky to know before they got in. You will regret forgiving this....the bad ride has just begun with these renters. Cut your losses now and find better tenants.

Re: first month's rent and security deposit bounced by Anonymous on July 12, 2013 @12:24	[ Reply ]

I would pass and find another tenant. A responsible person would never bounce a check! If you do choose to keep them, I would demand a cashier's check or bank certified check for ALL rents for the length of the lease.

Re: first month's rent and security deposit bounced by Daniel (CA) on July 12, 2013 @18:36	[ Reply ]

I would pass on this PITA. or require a prepayment of 6 months. ( in California you can require a prepay of up to 6 months for leases that are a minimum of 6 months) In addition to the SD. The SD and move in funds should always be in cashiers check form.

Re: first month's rent and security deposit bounced by Chris (CA) on July 20, 2013 @23:14	[ Reply ]

Good you found out now. You are done with them. Document the dates, conversation, copies of check. Don't you dare let them move in or you deserve what you get.

Re: first month's rent and security deposit bounced by Anonymous on June 26, 2014 @15:52	[ Reply ]

We just had a similar experience after having accepted a check for security deposit. And we did our due diligence on this tenant -- her references were strong and she provided proof of income 3x higher than the rent! Fortunately, we found out that she didn't have the funds to cover her security deposit before we gave her keys. Lesson learned: no keys can be given without security deposit money and first month's rent in our hands. We are learning how to be successful landlords, but we are also feeling quite smacked around as we learn. This is not an easy way to make a bit of extra money.

first month's rent and security deposit bounced - Landlord Forum thread 297410