How to Deal with Bounced Checks

By PropsManager Team | Dec 17, 2025

How to Deal with Bounced Checks

1. The Notification

Your bank will notify you that the check bounced and charge you a fee.

2. Notify the Tenant

"Your rent check was returned for insufficient funds. Please remit payment immediately via certified funds (cashier's check or money order)."

3. Charge Fees

Charge them:

• The Late Fee (because rent is now late).
• The NSF Fee (to cover what your bank charged you + a penalty, check state limits).

4. Switch to "Certified Funds Only"

Your lease should state: "If a check bounces, all future payments must be made via cashier's check or money order." This prevents them from floating bad checks.

Conclusion

This is another reason to switch to online payments with PropsManager, which verifies funds instantly or fails the transaction before it hits your account.