Bounced Rent Chq.

[ccameron]

Just wondering how you would handle a certain situation. This would be the third month renting to my present tenant. She called on Sept 2 to inform me that the chq that I had deposited on Sept 1 may not clear. Of couse it was too late at that point to do anything but wait. A week later I contacted her and she made an arrangement to pay me the full amt plus penalty tonight at 5:30 pm in cash. Very sorry, she claimed that it wont happen again. My question is ...what if I go tonight to p/u the cash and she doesnt have it? I would like to follow strict guide lines and start the ball rolling right away as I am a new investor and cant afford to not be paid. Any input of the steps to come would be greatly appreciated.

 

[MikeMcCrae]

If she doesn`t have the cash hand her, her notice. Next month make sure the money is good (cash or certified cheq) and if you don`t have it by the second of the month give her notice. The quicker she gets her notice the quicker she will act. Train her early that rent is due and payable on or before the first and stand your ground. If our customers know they can push us they will.

 

[Nir]

Christine,

Very simple. next time you do not get your money on the 1st (or find out a few days later that the cheque bounced), send the tenant Form N4 the following day (Notice to End a Tenancy Early for Non-payment of Rent).

http://www.ltb.gov.on.ca/en/STEL02_111286.html

My guess is she will pay you tonight as promised but if she doesn`t for ANY reason send her form N4 tomorrow!

There is simply no other way. Unfortunately, in this business once a tenant does not pay you, you can rarely get your money by being nice for example.

Good luck,
Neil

 

[ccameron]

QUOTE (investmart @ Sep 11 2008, 06:50 PM) Christine,
Luckily she had the cash when I showed up!! Hopefully this is a `one off` thing. Thank you for your replies. I will print off a copy of that notice for future problems---maybe there will never be a need to use it!!
Very simple. next time you do not get your money on the 1st (or find out a few days later that the cheque bounced), send the tenant Form N4 the following day (Notice to End a Tenancy Early for Non-payment of Rent).

http://www.ltb.gov.on.ca/en/STEL02_111286.html

My guess is she will pay you tonight as promised but if she doesn`t for ANY reason send her form N4 tomorrow!

There is simply no other way. Unfortunately, in this business once a tenant does not pay you, you can rarely get your money by being nice for example.

Good luck,
Neil

 

[invst4profit]

Be prompt in sending the N4 each time (next day). After 3 N4 notices you can and should evict.
If you really want to keep her and the late is not overly inconvenient then up the late fee and enjoy the additional income.

 

[michaeld]

or the one i heard on quickstart cd was increase the rent by $100/ month or more for every time there late.

that will teach em.

 

[invst4profit]

Unfortunately we cannot increase the rents in Ontario.

 

[llee]

If you and your tenant are using the same bank, then you can go to the bank counter with the tenant`s cheque, and ask the teller to transfer the money from the tenant`s account to your own account directly and instantly. This will avoid any bounced cheque or NSF charge.

Thanks,
Lucas