Rent checks on previous owner's name

Hi, we received several checks on the previous owner’s name by the time we could send the new owner notice. What options do we have to deposit these checks on our name?

Thank you.

@DallasMHP , as per your question:
"…we received several checks on the previous owner’s name by the time we could send the new owner notice. What options do we have to deposit these checks in our name?"

When we closed on one of our MHPs (on the 31st of the month), the previous Owner had already received several checks in their name. At the Closing the previous Owner just wrote us a check for the total of all the checks. We cashed her check and she then cashed the checks from the Tenants with no problems.

However, if you have already closed on the MHP, I would send back the checks with a Letter stating that the checks need to be in the new Owner’s name or LLC with a deadline to Post Mark the envelope.

Give them deadlines of when Late Fees and the Eviction Process will start (based on Envelope Post Mark Dates…make these Dates a little farther out as these Tenants were probably early or on time with their original checks…they just did not know to make the checks out to another name).

We wish you the very best!

If it’s just a few checks, it might be easier to give those checks to the former owner, have him deposit them, and then cut you a check for that same amount, Sometimes it’s a lot of work to get tenants to replace checks, and if your seller is happy with you, maybe a whole lot easier to have him effectively “cash” them for you.

Hi Frank,

As per your suggestion, called the previous owner and he graciously will deposit the checks and transfer the money to our account.

Thanks a bunch Frank.

Thanks to Kristin as well for replying so quickly.