Can I require cash rent payments from my tenant?
Rental Payments in Cash
SB 115 provides that beginning January 1, 2005, landlords and their agents will not be allowed to require cash as the exclusive form for payment of rent or security deposits. Cash payments may not be required in the original lease or rental agreement, or thereafter, unless the tenant has previously attempted to pay rent with a check drawn on insufficient funds or the tenant has instructed a bank to stop payment on a check. In either of these cases a landlord may give a tenant a new statutory form called the “Notice Of Obligation To Pay Rental Or Lease Payments In Cash” and after providing this form the landlord may demand payment in cash for up to three (3) months.
posted by Bill and Cindy Cara @ 10:18 PM
1 comments
1 Comments:
The US Treasury says:
http://www.treas.gov/education/faq/currency/legal-tender.shtml
Question---
"I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?"
Answer----
"The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."
This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy."
Always verify your specific situation with an attorney who can review any agreements you have signed or posted policies in evidence, along with local laws.
In addition, there have been cases where cashier's checks have been cancelled - no money forthcoming.
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