Personal Finance

Landlord requesting post dated cheques at extension of tenancy agreement

  • Last Updated:
  • Mar 16th, 2018 5:47 pm
[OP]
Member
May 3, 2016
321 posts
20 upvotes

Landlord requesting post dated cheques at extension of tenancy agreement

I'm on a 12 month fixed term tenancy agreement. Next month comes the end of fixed term and the tenancy agreement will be turned to a month-to-month term. Landlord is requesting 12 post dated cheques to cover the next 12 months of rent. Is that fine? Just wondering if I'll move out anytime during the next 12 months, if the landlord is required by law to return me the unused cheques... in case we get into any kind of dispute during the move out process.
15 replies
Jr. Member
Jan 10, 2018
148 posts
64 upvotes
never heard of that before... I wouldn't do it unless I knew 100% I'd be staying there another 12 months
Deal Addict
User avatar
Jan 8, 2009
1125 posts
225 upvotes
Brampton
He may be asking just for convenience purposes. Do you want to go to his place every month to pay rent? It is tenant's responsibility to ensure payment of rent on time as outlined in the initial contract. These are post-dated meaning they cannot be cashed before the dates you put on them. So if you leave tenancy, either he may return the cheques or you may ask your bank to not honour those cheque numbers.

Legally, I think it is not allowed under any circumstances to give post dated cheques to landlord but people do it purely for convenience. Also, if you get into any dispute with the landlord, you cannot withhold the rent anyways if you continue to live in the place.
Deal Fanatic
User avatar
Dec 27, 2009
5237 posts
2538 upvotes
Ottawa, ON
If you do give them, then record all the cheque numbers. You will have to cancel them if something happens (you move and landlord doesn't return them, etc). I personally would not want to do this. Why doesn't landlord let you pay via e-transfer or something? It isn't like you should have to make a trek to see each other monthly in this day and age, so there really is no "convenience" factor for doing the post-dated. It only benefits landlord.
Sr. Member
User avatar
Jul 29, 2013
522 posts
216 upvotes
"These are post-dated meaning they cannot be cashed before the dates you put on them."

There is another thread on RFD about post-dated cheques.

post-dated-cheque-being-cashed-early-possible-2177539/

A cheque is cashable at the bank as soon as it is written and the date can be ignored.
It is the responsibility of the writer to have money in their account.

I am sure your landlord would not cash until the date on the cheque and is asking because of convenience but this above thread says it is a courtesy by the bank and not mandatory not to cash it.
I have written 12 cheques to the landlord in the past but with the non mandatory information I do not think I would leave myself vulnerable in the future.
Deal Addict
Sep 23, 2007
4416 posts
776 upvotes
Give as many chqs for as many months as you are willing to stay. We can't tell how trustworthy or nice the landlord is and you don't need to rely on trusting him/her. Most people are not total dicks to cash all your chqs at once, and take your money if you leave early. But you don't need to take chances. I don't think it's that hard to give like 4-6 chqs, and meet again when the chqs run out. I'd agree landlords in general ask for post dated chqs because of convenience.
Sr. Member
Jun 10, 2008
983 posts
91 upvotes
I sent pictures of my cheque to one of my landlords and he was able to use that to deposit it using his banking app. Another landlord had access to my mailbox, so I left the cheque in a sealed envelop for her to pick up. Simplii offers unlimited interac transfers - you could utilize that as well - some landlords might resist because they are not internet savvy, but then you can find alternatives (like mine who agreed to pick it up from the mailbox :))
Deal Fanatic
Dec 11, 2008
8577 posts
779 upvotes
I've done that before, more convenient for everyone.
Newbie
May 31, 2006
45 posts
14 upvotes
In Ontario, it is technically illegal to ask for post-dated cheques, even during a lease term. You never have to provide post-dated cheques. Is your landlord required by law to return the cheques if you leave? No, because he should not have asked for the cheques in the first place. You'll be on the hook to try to get them back or cancel them.

Your landlord probably just wants some assurance of long term tenancy. He should be asking if you'd like to sign another one-year lease. If you don't, then he'll just have to deal with the uncertainty. Tough luck.

You can, however, provide a few months' worth of post-dated cheques as a nice gesture. But again, it is illegal to ask for them.
Sr. Member
Dec 16, 2017
817 posts
293 upvotes
Raincouver
In BC yes, it's common for people to provide post dated cheques, mostly we do 6 months, when you move out, you take your cheques back.
12mo sounds like a lot tho.
BananaHunter wrote:
Mar 14th, 2018 12:55 pm
Give as many chqs for as many months as you are willing to stay. We can't tell how trustworthy or nice the landlord is and you don't need to rely on trusting him/her. Most people are not total dicks to cash all your chqs at once, and take your money if you leave early. But you don't need to take chances. I don't think it's that hard to give like 4-6 chqs, and meet again when the chqs run out. I'd agree landlords in general ask for post dated chqs because of convenience.
Canadian banking prevents posted cheques to be cashed before the written date. So if the person tries cashing it, they'd likely be held instead.
US Banking allows cashing posted checks but you can also dispute with your bank to get it reversed
Newbie
Nov 24, 2015
56 posts
19 upvotes
Toronto, ON
I have seen leases where, after completion of first 12 months there is an option to renew for another 12 months. [I am not sure if landlords can legally require the renewal to be for 12 months, as opposed to month-to-month.]

In this scenario, requesting for the 12 checks is reasonable, but otherwise, they should be fine with accepting your e-transfers or collecting checks every few months.
Deal Addict
Sep 23, 2007
4416 posts
776 upvotes
If giving post dated cheques is illegal, then apparently there are lots of people breaking the law. On almost every lease agreement I've seen, it has mentioned post dated cheques. Usually give 1st + last and 10 post dated cheques.

Bank tellers are humans. Some are more strict than others. In my university years I processed cheques for banks. There were no instructions for staff to cheque dates. Basically if a bank teller doesn't catch it, a post dated cheque can be cashed early. But I think the vast majority of people are not such pricks to do this.
Deal Addict
Aug 3, 2014
4617 posts
2123 upvotes
Natasha321 wrote:
Mar 16th, 2018 12:09 pm
In this scenario, requesting for the 12 checks is reasonable,
Not.
BananaHunter wrote:
Mar 16th, 2018 12:33 pm
If giving post dated cheques is illegal, then apparently there are lots of people breaking the law. On almost every lease agreement I've seen, it has mentioned post dated cheques. Usually give 1st + last and 10 post dated cheques.
It is not illegal to give post-dated cheques. It is illegal for a landlord to require them. If you don't give them, the landlord will probably find some bullshit excuse and not rent to you, so there is not much you can do.

In this case, OP should not give any post-dated cheques. The landlord can't do shit about it.

https://www.ontario.ca/laws/statute/06r17#BK165

108 Neither a landlord nor a tenancy agreement shall require a tenant or prospective tenant to,
(a) provide post-dated cheques or other negotiable instruments for payment of rent; or
(b) permit automatic debiting of the tenant’s or prospective tenant’s account at a financial institution, automatic charging of a credit card or any other form of automatic payment for the payment of rent.
Member
Oct 27, 2005
305 posts
20 upvotes
Just my two cents here so feel free to disagree but personally I feel like renting a property from a landlord is a partnership. If you can't trust them with cheques to cover the rent, how can you trust them to ensure that the unit is repaired when something is wrong or expect them to be there if a bigger issue arises. If you are doubting whether or not to give someone post-dated cheques because you don't trust them, maybe you shouldn't be renting from them in the first place?

I've been renting for over 7 years and have always given post-dated cheques. I never really thought of the repercussions but I have never had an issue. The other thing that you should always do is try to vet the landlord. In the past, I have asked to speak with the previous tenant or any other tenants they've had to see what their experiences were like.

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