Posted by Russ Sims on August 21, 2003 at 13:02:11:
We’ve had a number of TBs cash us out and it always seems the lender likes to see payments by personal check. When a tenant gives us a check for their monthly payment, we make a copy of it and if they mail it we even keep the envelope that shows the post mark date, and then we give those check copies to the lender when they ask for rent verification. We also tell the tenant to keep their cancelled checks for additional documentation. Some lenders are very anal about verification, to the point that it’s a serious problem if a tenant pays by cash becuause it’s so hard to document the payment (cash receipts given to the tenant mean nothing to some lenders). Once in a while a relative of a tenant will have to pay the rent for them…I tell the tenant that the relative shouldn’t give us a check, but rather give the tenant the check and then they can give us a check of their own: lenders don’t like to loan to people who have to borrow their payment. Probably more than you wanted to know but hope it helps.