Can my landlord refuse payment by check?

Question

My landlord is a friend of mine, but he wants rent payments in cash, trying to hide the extra income I guess. That's not the issue here, the issue is that he doesn't want to accept a check as rental payment. I would rather pay with a check so I have proof of payment and it's easier than driving across town to my bank to withdraw money. I live in Iowa, is there a law stating he must accept a check as payment? I've paid him with a check once before, and it didn't bounce, my checks never do.

Answer 1

"He absolutly can refuse payment by check."

Maybe where you live, but that is not the norm.

A landlord can put in a lease that they only accept cash, money orders, etc ... but if you did not agree to it in writing, they can't just make up conditions as they go along.

I checked Iowa Statutes, and there is no law that says he must accept a check. There is also no law saying that he can refuse a check.

Keep paying by check. He is being unreasonable and doesn't have a legal leg to stand on.

Answer 2

It depends on what your rental agreement is as to whether or not he has to take a check. If it states he does not accept checks, then there is no recourse for it. If your rental agreement says he accepts checks for payment then he has to accept a check. Unless, he sends you a letter or has you sign a new agreement stating otherwise.
You can go to a local bank and get a cashier's check or money order so that way you can have a copy of it. Most places charge a small fee for them however. If you do pay him in cash ask for a signed receipt from him so you have future proof that you did pay your rent.

Answer 3

In California it is against the for a Landlord to require cash payment in lieu of checks.
The reason often why landlords ask for cash is, because they themselves make cash payments. Many low wage earners don't have bank accounts, and it also helps them from writing checks for every single purchase. Running to Ace Hardware to pick up a few bolts, a cash payment is quicker and doesn't hold up the line. He'd have to order new checks every 6 months at the rate of purchases he does.
Also some contractors don't accept checks because they had to many bounced checks or NSF checks. Especially small contractors who don't have the time to run after a bounced check. If you want that broken step repaired today, be prepared to have cash on hand. And the above assumption "he trying to hide income" is baloney. In an IRS audit they care less if you paid by cash or check, they go by months of occupation and rental contract. Plus the Landlord has himself received bad checks and can never rely positively that a check will clear. If his bank balance is low he more apt to ask for cash than check, because he doesn't want his own checks to bounce due to the deposit bouncing. Much depends on the size of the rental complex; a manager is apt to be required to accept checks only, for the landlord to keep tabs on him and do proper books. If the landlord is also the manager and Handyman, he is apt to want cash on occasions to help him in paying bills which require cash payments.

Answer 4

You are right in demanding receipts or proof of payment. Without it, you really have no recourse.

Even with money orders, he could claim it wasn't him that cashed it, etc..., and it'd be 100 times harder to clear up than a check from your own bank.

Honestly, I'd just send him a check and tell him if he doesn't want your money, don't cash it. You have no responsibility to partake in his tax fraud. And that's what this is.

Is he providing you with the required rent paid tax form, so you can claim any property tax credit?

Friend or not, this is wrong. Step up and tell him so.

Answer 5

I used to pay 10 days in advance. Try that. Golden Rule in Life = keep the landlord happy. What is a money order costing you? $8. Save your money, just pay super early. Bank transfers can take 3 to 5 business days.

Answer 6

Your landlord can demand what ever form of payment he wants. If he wants to make you pay in cash then make him give you a signed receipt. Make sure it's legible so he can't go back later and deny it's his signature.

Answer 7

He absolutly can refuse payment by check. I know of rental agencies that only accept money orders.

Your best bet would be to pay him the cash, and have him write you a receipt as your proof of payment. You could also ask to pay by money order (good as cash) and have your receipt that way.

I would like to mention, that he can also refuse to take pennies as another user posted. I would certainly refuse unrolled pennies as payment, and then charge a late fee if the money was not provided by the due date.

Answer 8

Makes no difference who you are or where you live, anyone can refuse payment by check for any thing or product.

Answer 9

yes they can refuse a check, you can pay in money orders that is the same as cash, if he does not accept that give him cash but have him sign something each month to note payment

Answer 10

He can refuse payment in any form...Landlords have all kinds of weird rights.What you should do is go get it all in pennies and have them cart them into him unrolled or go to the bank and get it in filipino pesos Next time he will probably settle for any type of payment other than those you offered before..