POST DATED CHECKS

Every now and then, a prospective tenant—usually a foreigner new to the Philippines—will raise their eyebrows at the idea of issuing post-dated checks (PDCs) for rent. It’s understandable. In many countries, tenants simply automate monthly transfers or deposit rent directly into the landlord’s account. No checks involved.

But here in the Philippines? PDCs are still very much the norm.

Why? Are landlords just being old-fashioned? Is this a medieval system that should’ve died with the fax machine?

Let’s unpack why many lessors still insist on PDCs:

1.⁠ ⁠It builds structure and accountability.

No more “Oops, I forgot to pay!” or “I transferred it—didn’t you get it?” The landlord has a physical instrument to deposit on the agreed date.

2.⁠ ⁠It protects against ghosting.

With checks in hand, landlords don’t have to chase tenants every month. If the rent is due, the check gets deposited—simple as that.

3.⁠ ⁠Legal leverage.

If a check bounces, it’s not just a matter of unpaid rent—it could lead to estafa charges. That legal weight makes it harder for delinquent tenants to walk away without consequence.

So, what can tenants do?

1.⁠ ⁠One workaround we’ve used: Have a local colleague or company issue the checks on the tenant’s behalf, then replace them once the tenant opens their own Philippine checking account. (Important: whoever issues the checks assumes legal responsibility if they bounce.)

2.⁠ ⁠Another option: Agree to pay a few days in advance via online transfer. Some landlords are open to this, especially with a good payment history.

Dealing with a problematic tenant? PDCs could help.

Here’s a tactic I learned from a bank officer: if a tenant’s checks keep bouncing, you can continue depositing them. Each failed deposit results in penalties for the issuer. Over time, if the account balance is drained by these fees, the bank may automatically close the account. Now here’s the kicker—once a check is issued from a closed account, it escalates to a more serious offense.

The issuer won’t just face legal trouble; they’ll also be flagged in the BSP’s negative database, effectively blacklisting them from transacting with any bank in the Philippines.