Tenant is using the ACH through Avail to delay payments; so they initiate a payment on a Friday, which then is to pay on the following Wednesday, then “insufficient funds” and then new payment initiated to pay again on a Friday, and the cycle begins again. Payment was due on the 1st and now it will be deposited to my account on the 27th (so almost a full month late).
I have given them a 90 day notice (reviewed by local attorney) so I think they are trying to game the system to avoid the last month’s rent.
Can request they only pay by cashier’s check, and not use the ACH through Avail??
My tenants have to pay a NSF (non-sufficient funds) fee every time a payment does not complete due to insufficient funds in their account. This is automatic for me in Avail. Maybe that depends on their bank or the state of residence? (I’m not sure.)
These NSF fees can get quite expensive for them, so they are definitely encouraged to not allow it to happen. Are you charging your tenant a late fee? If not, I would encourage it. And if these NSF fees are not automatic for you, I would encourage adding it to the terms of your lease as well. Nothing talks like owing more money, and is usually a standard practice in transactional/business relationships.
Now with all of that said, you can set your tenant’s payment options to whatever you want in the lease. If that doesn’t include Avail, then I don’t see how that would be an issue.