Cancel deposit return check? - Landlord Forum thread 338215

Cancel deposit return check? by Hallie (WA) on August 19, 2015 @15:05

I posted a week ago because my former tenants, for some reason, weren't cashing the security deposit remainder I sent to them (sent via return receipt mail, within the 14-day time I legally had, so I know they got it). Update and new questions:

They still haven't cashed the check or contacted me. I was REALLY generous in returning so much of the deposit, because I wanted them out of my life quickly and without further hassle. But now they're weeks late on paying their final utility bills and that balance reverted to me. If I don't pay it immediately, I get reported to a collections agency!

Can I:
* cancel the check I sent to them 3+ weeks ago that they never cashed, and send a new check minus both the check cancellation fee and the unpaid final utility bills? Washington State demands I return deposits within 14 days, which I did and can prove, but they never cashed the check and in the meantime they've cost me more money. Another item: one of the keys they returned wasn't to my house, so I had to have the whole place rekeyed (couldn't get a locksmith here within the original 14 days) -- can I charge them for this, too?

Any advice? Thanks!

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Re: Cancel deposit return check? by Garry (Iowa) on August 19, 2015 @16:25	[ Reply ]

Yes, you can cancel the old check, take out the amounts you paid on their behalf for the utilities, and charge them the cancellation fee. Then send out your new letter to them, detailing dates, amounts, and reasons why you did this again. I, personally, do not charge Ts for changing locks, as long as they returned at least SOME keys to me. But I do change the locks anyway, (at my expense ) because anyone could have made copies and then just returned the originals to you --- you just can't prove it. In the letter, tell them the check must be cashed within 30 days, as you will put a stop payment on it after that. If you stop payment after the 30 days, they would have to take you to court to get it, then, and they would have a hard time explaining to a judge why they couldn't cash it in the 30 days. (however, I would wait at least 60 days before actually stopping payment, so you would look good in front of a judge if it ever comes to that.

Re: Cancel deposit return check?

Re: Cancel deposit return check? by Anonymous on August 20, 2015 @00:31	[ Reply ]

The check in your state is good for how many days? Paying the cost of a canceled check may be more costly than the fee. Wait this one out, even if it takes 180 days(in my state). As for the utility costs, in many areas this can revert to the owner of the property. Learn from this and next time speak with the utility company. I let one of the utility companies know a tenant is leaving when I put the utility back in my name. You are rid of them. Learn from this and watch more carefully with the next tenant. I had one tenant that I was so glad to see go. Going back and getting the rest of the security deposit to help cover the unpaid utilities would no longer be legal. Small claims court is the avenue to settle unpaid utilities. And you have to weigh whether small claims can get money from someone that does not have the money. There is a fee for small claims, as well as your time, so you have to weigh out whether it is worth your time and money to pursue a deadbeat. I'm sorry to say, but it sounds like you will probably end up incurring the cost of the unpaid utilities.

Re: Cancel deposit return check? by John Brayton (Massachusetts) on August 20, 2015 @11:43	[ Reply ]

I'm pretty sure you really, really should not cancel the check. It has been three weeks, you sent them the check and can prove that they signed for it (right?), and it is not clear that the tenant will ever get around to cashing it. Honestly, I would leave it alone until you hear something from the tenant. If and when the tenant cashes the check, you can invoice the tenant then and you can sue the tenant in small claims court if it makes sense to do so. If the tenant never cashes the check and just forgets about it, then the money will stay in your account and this problem will solve itself. John

Re: Cancel deposit return check? by Stephen (WA - Washington) on August 20, 2015 @13:25	[ Reply ]

Well, here is my opinion. For the current situation: don't cancel the check you already issued, pay the utility bill yourself, and bill the former tenant for the utility cost. Why? Like some of the other commenters I see problems from that tenant over a stopped payment (I don't trust them). In regard to the utility bill, it can be a lien on the property if not paid so you will ultimately have to deal with it. Deal with it and then attempt to collect the funds from the tenant. In the future (and this is based upon my own experiences): - learn which utilities can result in liens against the property. For me, it is the water/sewer/garbage. The electricity and gas don't result in liens for me. - a day or two before the 14 day limit, on a business day, call the appropriate utility, identify yourself as the landlord, and ask whether the final bill has been paid. - If it hasn't then pay it over the phone via credit card. This ensures that it is paid and it is clear that it was paid by YOU and not through the tenant's check that supposedly arrived a day later. - include the utility cost in your final statement. Yes, I have tried some variations upon my guidance. Some variations worked and some dragged out and caused anxiety and heartache (for me). But the guidance above achieves the goal I believe we are all going for: to not be left holding the tenant's utility bill.

Re: Cancel deposit return check?