jimf

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.

JonboyE

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?

jimf

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.

Alan2005

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.

Aviator

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.

Alan2005

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.

JonboyE

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.

JonboyE

Then they are considerably richer than my tenants.

Alan2005

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.

jimf

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

Bali2010

I think the 'grass is greener' is human nature to some extent... PLUS we hope help on BE will let us know if it is the norm & not a way of fooling the unknowing.

My sister's complaint seemed to be something to do with bacon - my comment was she was stretching if that was her main problem with a new life at the other side of the world.

jimf

Oh well looks like post dated cheques it is then. Now where did I leave them.......with my quill I think somewhere.

No doubt there is a Canadian Expats forum somewhere where someone is asking about that strange UK banking practice the standing order.

Edna Bucket

It's really the most convenient way for both tenant and landlord. From the tenants point of view it saves them forgetting to post a cheque every month or delivering it to the landlord. From the landlord's point of view it saves a lot of bother, I take all the cheques to the bank in one go and they pay them into my account on exactly the right day that the rent is due.

I know it seems an ancient way of doing things but it works well.

el_richo

I think what a few people who have recent experience in the UK are getting at is the fact that by having the ability to utilise direct debits or standing orders (not sure what the terms are in Canada), this removes the hassle of using cheques. Writing them out, delivering them to the landlord, landlord taking to the bank each time etc etc all costs time and money to both parties.

Quite archaic in this technological day and age, in my view, but as many people have commented, it is what it is.

I guess i'll need to practice using a pen as i've not touched one for ages.

Edna Bucket

I appreciate the convenience of direct debits and standing orders too but we just have to accept that it isn't going to happen here in the near future. Even when you try and explain how it works to bank employees they look at you like a dog watching TV.

Definitely archaic but not worth worrying about.