Rubber Checks - Posted by Rob FL


#1

Posted by Laure on January 15, 1999 at 22:28:35:

I am going to start asking for auto draft transfers from their checking. I haven’t implemented it yet, but it sounds sweet !

Laure :slight_smile:


#2

Rubber Checks - Posted by Rob FL

Posted by Rob FL on January 15, 1999 at 22:02:12:

Christmas must have been expensive in 1998. I had 3 different tenants bounce checks on me this month. None of them had bounced a check on me in the past (one has been there for over 2 years). I have very strict leases covering this with expensive late fees and rubber check charges which all have agreed to pay and I am not too worried about collecting. I have their new checks and have verified funds and will cash tomorrow morning.

My problem. This is the first time I have had a bounce check problem of any magnitude (just an occasional one every 6 months or so, not 3 in one month). I went into my bank this afternoon and asked if they could “red flag” my accounts in case more bounce in the future the bank could call me instead of waiting 10 days to send them via mail. The bank said they can’t do this because of their large volume, blah blah blah. They told me to call their 1-800 number and verify if the checks clear by calling each day, but this would be impractical because of the number of rentals. I don’t really feel like changing banks because I have been banking with them for many years and have 5 bank accounts with them right now and it would be a real pain to change over (plus they give free checking).

My question. Does anybody have any ideas on how to shorten the time period on finding out about these bounced checks, if it should happen again? I am open to any ideas.


#3

Rubber Check Warning… - Posted by Jennifer(NH)

Posted by Jennifer(NH) on January 19, 1999 at 10:50:10:

I learned this the hard way. According to my bank it takes 2-3 business days for an instate check to clear. I deposited one tenants check, it cleared and then 10 business days later it bounced. I talked to my bank and they said sometimes it can take up to 30 to 60 days to bounce a check so even though it clears it doesn’t necessarily mean it won’t bounce later. So from now on, I go to the tenants banks and cash the checks that way those games can’t be played with my bank accounts and if the check does bounce I am at least in the position of having the money in hand versus the bank dipping into my account.

Jennifer


#4

Re: Rubber Checks - Posted by Tim Pannabecker

Posted by Tim Pannabecker on January 17, 1999 at 19:05:18:

Rob,

I do not presume to know your financial situation but, I love my late tenants. Christmas is a gold mine of late fees. I average 10-15% on my late fees Plus $50 if a check bounces. My late payers usually just include the late fee in their payment and a call to tell me it will be late.
I definately understand the stress of nonpayers but if your people always pay, collect your late fee and call it an additional profit center.

Best of luck

Tim


#5

Re: Rubber Checks - Posted by Rob FL

Posted by Rob FL on January 16, 1999 at 23:57:48:

I got all my checks cashed this morning no problem. I took them to the tenant’s banks and got cash. All of them cleared. Wheeeeew!!!


#6

Re: Rubber Checks - Posted by Chuck (SW MO)

Posted by Chuck (SW MO) on January 16, 1999 at 23:19:54:

Tell your bank to send the checks through only once. That will save processing time. An additional benefit is that the check is still able to be cashed if and when funds are deposited to the account. (you won’t have to wait on the tenent getting around to re-writing a new check for you)


#7

Re: Rubber Checks - Posted by BR

Posted by BR on January 15, 1999 at 23:05:44:

Rob, This situation is not uncommon in this business around X-mas. Once I recieve a hot check from a tenant, from that point forward I will only accept cash or money orders. It won’t happen again, at least with that tenant. Also, word gets around. One tip: If you make a rule , ENFORCE IT!