Why Post Dated Cheques?
 

Landlord seems to prefer 11 post dated cheques for monthly rent payments on a 1 year lease (paid first month with the deposit). I just wondered how common this method of paying a monthly rent is and any alternatives you have used instead.

Re: Why Post Dated Cheques?
 

...That's pretty much the norm (here in Edmonton) on a one year lease with private landlords and with management companies.

Re: Why Post Dated Cheques?
 

it is what our landlady has asked of us. it seems archaic, but not wanting to be the euro-weenie, i didn't protest. it is strange though, as banks here do not seem incapable of the automatic monthly 'account to account' transfer.

however, nothing in our tenancy agreement requires this of us and so i have yet to provide a fist full of cheques. and i don't think i shall. my point of contention will be that our current bank was selected on the basis of our being able to open an account with them whilst still residing in the UK.

we may wish to shop around for a better alternative, now that we are free to do so. however, a year's worth of cheques would effectively tie us (to a certain degree) to our current institution.

just a thought.

Re: Why Post Dated Cheques?
 

Which is what the landlords are after should you sign a years contract.

Also be aware that to cancel cheques costs too

Re: Why Post Dated Cheques?
 

.......I think he's talking about his bank in the bit you highlighted. :)

Re: Why Post Dated Cheques?
 

In Toronto a lot of landlords also ask for the years rent in backdated cheques, I guess so that they fell more secure in knowing you will pay and not just leave and so you don't forget to mail a cheque or whatever. However while you can do it if you like it is not legal for them to require it under Toronto tenant rules, they can only ask for first and last months rent. They are also not allowed to ask for security deposits or anything similar. When your lease expires and you move out they are also obliged to pay you 6% interest on the last months rent that they have been witholding.

Re: Why Post Dated Cheques?
 

Ahhhhhh :o

If it is a reference to being tied to the bank then its as simple as closing out the account if you no longer wish to use them, and getting new cheques from a new account for the remainder (obviously letting your landlord know!)

There are other alternatives such as email money transfers, but as was said above its the way things are done here.

Re: Why Post Dated Cheques?
 

It also save the landlord having to keep trying to track down the tenants and collect the rent. He can just deposit everyones cheque at the appropriate time. He is of course relying n the cheque not getting sent back NSF.

Renting is a way of life here for many and some renters don't seem to consider being a tenant neither a responsibility nor commitment, some even don't like paying the rent, just seeing how long they can get away with it.

Re: Why Post Dated Cheques?
 

What kind of receipt should you get for a years worth of post dated cheques - presumably the actual list of cheque numbers with amount and date. Is it also resonable to put a statement to the effect that the only further obligation of the tenant is to have sufficient funds in the account at the dates shown on the cheques. ie if the landlord looses the cheques that is their problem. Or if they require another cheque to be written that will be at the cost of say $100?

Re: Why Post Dated Cheques?
 

Cheque books are sooooooo 1990's

Re: Why Post Dated Cheques?
 

The cheque itself is a receipt once it is cashed. You could do up a schedule and ask them the sign it. Not sure you will get them to agree to your T & Cs. I know if you came to me with that I would tell you to go find somewhere else to live.

We don't pay any additional fees to to put a stop order on cheques. You do have a good point though, if the landlord loses the cheques and you suffer financial loss then you may have some redress, you'd need to talk to a lawyer about that one. If all you lose is a cancellation fee it's probably not worth the hassle. Another option may be to ask the landlord if he would accept you dropping off a cheque the day before the rent is due and if you fail to keep to that you'll give him post dated cheques. Not sure what the problem is here though?

Re: Why Post Dated Cheques?
 

It makes sense that it saves the landlord time and effort in collecting the cheques or the tenant the trouble of posting the cheque. However, the system of post dated cheques does seem very old fashioned. I can remember nearly 20 years ago renting the first house in the UK and it was just a question of filling in a form and direct monthly payment to the landlords agents bank account. I'm renting the house out in the UK and again its just a direct monthly payment from their account to the agents account.

A place I rented in Edmonton for a while used the system of Email Interac payments which worked okay. However, the landlord says there is a limit of $1000 per payment on this and the monthly rent is over twice this. (The place I rented in Edmonton was small and I paid fortnightly so mybe the limit wasn't applicable then.) I'm going to bank today on another matter and will find out more about the options then.

Are renters here seen as being less reliable payers than in the UK?

Re: Why Post Dated Cheques?
 

I doubt many landlords would have a clue what tenants are like in the UK. Canada seems to have much more or a renters culture than the UK. Renters seem to be of quite a diverse range of reliability. Having been a landlord, I can say I am more than happy to have left that era behind.

Things in Canada may seem backward to people from other countries, but it is what it is. One thing I do wonder though, is if things are so backward, why do people come here for a 'better life' then complain about the way we do things?

Re: Why Post Dated Cheques?
 

The lease agreement doesn't state post dated cheques are required but does include a late payment penalty $50 plus $5 per day I think. Putting some kind of penalty on the landlord not taking care of a cheque doesn't seem unreasonable in that context.

Re: Why Post Dated Cheques?
 

In your opinion, not sure he'll see it like that though. I guess you don't have to live there. Depends on how bad he wants to rent to you and you want to rent it. Just don't be surprised if they suggest you look elsewhere. Then you never know unless you ask.

Re: Why Post Dated Cheques?
 

In BC the rental contract is done on a form supplied by the residential tenancy office. You just fill in the numbers and dates.

The tenant has a clear obligation to pay the agreed rent on time. Chasing tenants who don't pay on time is a major pain in the neck. Even in the world of email and interac transfers they need to be initiated by the tenant the landlord has no assurance that they will be paid on time, if at all.

You just have to accept that post dated cheques are the way things are done. In a tight rental market a landlord is going to be very wary of a tenant who proposes to pay any other way, especially if they try to add terms to the contract that could result in financial penalties to the landlord.

Re: Why Post Dated Cheques?
 

That is one reason you give the landlord post dated cheques: you are never late with your rent.

As the Aviator has said - it is the way it is. The residential tenancy act of your province will list all the rights and remedies available to both the landlord and tenant. You are only going to make your life more difficult if you try to do something different.

Re: Why Post Dated Cheques?
 

So nobody uses Direct Debit?

Re: Why Post Dated Cheques?
 

Some companies, like the utility supplies and large corporate landlords do, but individuals cannot initiate a direct debit.

Re: Why Post Dated Cheques?
 

I dont see why there is a problem here to be honest - You rent a house for a year give them 12 post dated cheques and its all sorted , its not like they are asking you to pay up front

i dont know what its like in other parts of Canada but i know in 5 different properties in Newfoundland I was interviewed to make sure I was 'suitable' to move into their house - if I started to throw clauses at them I would most certainly be told to take a hike .



Its the same for the kids daycares - we give them 3 months of post dated cheques at a time - may seem a bit archaeic but thats the way it is

Re: Why Post Dated Cheques?
 

Aaaah i didn't realise that. Thanks for clarifying.

Shame really as it'd save people lots of time and effort on both sides. Not forgetting the environmental benefits Canadians love so much ;)

What about a Standing Order?

Re: Why Post Dated Cheques?
 

AFAIK they don't exist. You can do something like this with payees the bank has pre-approved. These are businesses like utility providers, credit cards, municipal / provincial / federal government, insurance companies and so on. For example, I can schedule my payments to the medical services plan up to 12 months in advance. However, to transfer money electronically to anyone else the email/interac transfer is the only option.

Re: Why Post Dated Cheques?
 

Again, thanks so much for clarifying. I'm surprised these and DD's (in the banking sense ;)) aren't freely available and used.

Oh well, it is what it is.

Thanks JonboyE

Re: Why Post Dated Cheques?
 

The other option is if you have the same bank as the payee, is to set up an electronic transfer to their account from yours. Some banks & credit unions are also doing this between different institutions now, however they don't accept any risk or liability if they screw it up.

Re: Why Post Dated Cheques?
 

That's how we pay our rent, and indeed all our utilities and credit card bills. I think there's another name for it here, but can't remember off the top of my head. It does help that our landlord is a property management company with several hundred tenants, I guess.

Re: Why Post Dated Cheques?
 

Pre-authorized debit or PAD. Sometimes also called a Pre-authorized payment or PAP.

Re: Why Post Dated Cheques?
 

/

Re: Why Post Dated Cheques?
 

But why complain about it. You have a choice, take it or leave it. The landlord can choose how he runs his business. If you as the renter don't like the way he does it, you have a choice.

Re: Why Post Dated Cheques?
 

Aren't you getting ahead of yourself here? The landlord hasn't lost the cheques yet.

Me thinks you are going to love your new life over here:thumbsup:

Re: Why Post Dated Cheques?
 

it was indeed a reference to my current bank. and as you previously cautioned, the cancellation of cheques incurs a fee, which remains as my excuse for not issuing a year's worth of cheques up front.

i do not think it reasonable for my landlady to cause me additional expense through such endeavours, when i am already committed (and legally bound) to pay rent for the minimum term already stated on the agreement of tenancy.

for someone who has been using electronic methods for every single transaction when back in the UK, this cheque writing, change carrying way of life is fekkin weird to me! but it all adds to the charm of my new home. i am happy to comply with how things are done here; tis all part of the experience.

Re: Why Post Dated Cheques?
 

I'm not complaining but rather enquiring the reasons for the system that seems to be the norm. Expressing a different opinion isn't a complaint.

As I mentioned on an earlier post the post dated cheques requirement has been introduced after signing the agreement not before. Obviously this isn't an issue that would make or break a decision to rent a particular property but out of curiousity it's interesting to know why that is the custom. It sounds like it's due to the lack of facilities provided by the banks and that landlords are overly anxious to get their hands on bits of paper.

Obviously you have to follow the customs where you choose to live.

Re: Why Post Dated Cheques?
 

Yes, getting paid is part of the risk of the business of being a landlord. And, like in any other business, a prudent businessman does whatever they can to mitigate that risk.

Ask yourself, if you were a landlord and were faced with two prospective tenants. One said "here are my cheques for the year's rent that you can deposit on the first day of each month to ensure that my rent is never late". The other said, "I am not going to give you any security of payment unless you give me something back in return. However, I will pay the rent but you might have to come looking for me so you may not get it on the first of every month. Honest."

Which tenant would you chose?

Re: Why Post Dated Cheques?
 

The issue is the post dated cheques issue has been introduced by the landlord after signing the lease. It is not a factor in selecting a tenant. It is not written into the lease that 11 post dated cheques shall be provided by the tenant upon commencement of the tenancy. If a tenant so wished any post dated cheque could be cancelled so it is no security of payment.

I have been a landlord a few times and never considered the imposition of post dated cheques a factor in selecting a tenant. All rent payments were always received on time.

Re: Why Post Dated Cheques?
 

I wouldn't ever give anyone post dated checks. I used to hear stories about people that did this in the UK and the landlord cashed them early. The bank didn't check the date when they were presented.

Re: Why Post Dated Cheques?
 

To get around this a common practice is to use a highlighter over the date. If the bank processes a cheque early, the liability rests with the bank and it can be reversed.

Re: Why Post Dated Cheques?
 

Yes, it's the bank that's screwed up - but it could affect you in that you could have organized other payments which may not go through etc. It can be sorted out, but who needs the hassle.

Re: Why Post Dated Cheques?
 

You cannot demand that a tenant pays by post dated cheques. The tenant's only obligation is to pay the rent when it becomes due.

However, I am right up front with a potential tenant when showing a property that I expect to be paid by post dated cheques - 12 at a time. If the prospect is not willing to do this I would rent to someone else. It hasn't been a problem because this is the normal way of doing business and tenants expect to pay this way.

Re: Why Post Dated Cheques?
 

Then they are considerably richer than my tenants.

Re: Why Post Dated Cheques?
 

I wouldn't rent from you;). Are you sure this isn't legally dubious with regards BC's deposit laws? - it's certainly not in the spirit of it even if it's technically ok.

Re: Why Post Dated Cheques?
 

There would be the cost of other cheques that might bounce. I assume the bank would refund those. It's not just the cost and hassle though but the fact you'll be recorded as the issuer of bounced cheques at places like the childrens' schools, sports clubs, utility company etc