UNFUNDED CHECKS

Once upon a time, a Filipino couple leased out their house. The tenants paid the rent with post-dated checks, and for the first few months, everything was fine.

Then the owner received a notice that the utilities would be cut for non-payment. She tried to reach the tenants. They had disappeared.

Looking back, there were signs. The tenants arrived in a sports car with bodyguards and seemed to have plenty of money. They also wanted to move in just one week after seeing the house.

The owner checked her bank statements and found that six months of rent checks had bounced. She told us the bank never notified her.

She entered the house with the village admin and was shocked. The aircon units had been left running for months. There was water on the floor, and the ceilings showed water damage.

The unpaid bills and repairs far exceeded the security deposit. She wanted to sue, but she discovered the tenants had used fake government IDs.

Lessons:

1. Verify every ID. Call the tenant's employer to confirm employment, and check the QR code on a PhilSys ID instead of just looking at the card.

2. Check your bank statements every month. Don't assume the bank will tell you a check bounced.

3. Act on a bounced check right away. Under BP 22, the Bouncing Checks Law, send the issuer a written notice of dishonor. They have five banking days to pay or make arrangements. Without that notice, it's much harder to file a case later.

4. Move-in dates that are too urgent deserve a second look.