As a landlord, receiving a bad check can be a serious hassle. Not only are you deprived of expected monthly cash flow but the process of collecting the money owed you can be time consuming. If you receive a bad check, an escalating series of actions offer a strategy not guaranteed to work but better than doing nothing. Purposely writing a bad check is called fraud, which is a crime.

Pick Up Phone

Sometimes the easiest way to get your money is call the renter and ask politely to make good on the debt. A bounced check can be an honest mistake. Give the renter a chance to pay it again. Be careful when you call and what you say. Many states have strict regulations against debt collection by phone. Call between the hours of 8 a.m and 9 p.m. and speak only to the person you are attempting to reach.

Other Remedies

If the first step doesn't work, make the same demand by certified letter, return receipt requested. Thirty-five states take a very pro-business stance that allows the victim to collect extra damages above and beyond the normal if a written demand for payment is ignored. More than a few Americans live paycheck to paycheck and your renter may have written the check hoping you wouldn't cash it immediately, planning on their next deposit to cover it. Wait a few days and call the bank to ask if there is now enough money in the account to cover the check.

Prosecution

If all other methods fail, it's time to get legal. Many local prosecuting attorneys (PA) have great bad check programs with good collection percentages. If your county has one of these, you should only have to take the check into their office and they'll do the rest. Once again, many are pro-business and will contact the check writer, offering one more chance to pay the debt before legal action goes forward. If all goes according to plan, this threat by the PA will persuade your renter to cough up the money. If the amount in question falls into the framework of your local small claims court--usually a limit from $2,000 to $5,000--you can file a lawsuit against the renter. If you've followed proper procedure, you might be able to collect two or three times the amount of the check in damages and court costs. Their wages can be garnished or a lien put on their house. Collection agencies take a big chunk of the amount but this route might be a final option, especially if the check is too small to make it worthwhile in small claims.

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Free Advice: Contract Law

National Check Fraud Center: Bad Check Laws by State