Avoiding Bad Checks

Turning over the keys of your rental to a new tenant prior to verifying funds or allowing a depost check to clear has been cause for tremendous losses.  Understandably, there are legitmate reasons for a new tenant to have to move in immediately, but allowing possession without clear funds can be dangerous.  Following these simple guidelines may help catch problems before they occur.

1.  Be sure the name and address imprinted on the check is consistent with the application.  If the check has no imprinted name or the name is typed or handwritten, it may be a problem.

2.  Check photo I.D. and be sure it is consistent with the application and the physical description is accurate.

3.  Do not accept a post dated check in return of possession of the rental unit.

4.  If all sides of the check are smooth (one side or the top should be perforated) the check is suspicious origin.

5.  The ABA transist number must be consistent with the bank and location. Click here to view the routing symbols of banks that are members of the Federal Reserve System

6.  Temporary checks, out of state checks, and two party checks may all be a sign of a potential problem.

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