How To Collect On a Bad Check From a Rental Tenant
- 1). Contact the renter directly. Give the renter the opportunity to explain and correct the problem. Review the rental agreement with the tenant and assess the appropriate fee for bounced checks, including late fees. If the renter demonstrates a habitual problem with submitting bad checks, issue a warning or otherwise follow the steps outlined in the rental agreement.
- 2). Set up installation payments. This is an option to consider if you have a long-term tenant who has a history of paying rent on time. Create a contract that allows the tenant to divide the rent due into weekly payments. Add the late fee as well as the bank fee for the bad check to the amount owed.
- 3). Send a payment demand letter via certified mail. If you are unable to contact a renter directly, issue a notice via certified mail. The letter should review the rental agreement regarding bad checks and state the amount owed, including any late fee and bank fees for the bounced check. Include when the payment must be received before you pursue payment in small claims court. Make sure that your certified mail has a return receipt for proof in the event that you must go to court to receive payment.
- 4). Attempt to collect the rent owed in court. Rules for filing a small claims suit vary from state to state, so it is necessary to go your county courthouse for information on how to file a claim. Follow the appropriate instructions on what court forms will need to be completed and submitted to the clerk of the court as well as how you should notify the tenant of the suit. On your court date, bring all pertinent information such as a copy of the bounced check, the certified mail receipt and a copy of the rental agreement.