Several states regulate the payment methods which landlords may accept for rent. Most states let landlords and tenants agree to specific payment methods in the lease.
Which Rent Payment Methods Are Permitted/Required in Each State?
These states regulate allowed and/or prohibited rental payment methods:
| State | Rent Payment Methods |
|---|---|
| California | Landlords must accept at least one form of payment besides cash or electronic funds transfer |
| Connecticut | Landlords cannot require electronic payments |
| Hawaii | Landlords cannot require post-dated checks |
| Illinois | Landlords cannot require electronic payments |
| New Jersey | Landlords renting out more than two units cannot require electronic payments |
| New York | Landlords cannot require electronic payments |
| Texas | Landlords must accept cash unless the lease agreement provides other acceptable methods |
| Washington | Landlords must accept money orders and personal or cashier’s checks; landlords must accept payment by mail if there is no accessible location to pay rent in person |
Landlords still have to act reasonably even if state and local laws don’t regulate rent payment methods. Tenants must have at least one reasonable option for rent payments, such as by check, electronic payment, or bank transfer. For example, it’s not reasonable for a landlord to ask that tenants drop payments off at a site that’s a hundred miles away from the rental unit.
Must Landlords Make Payment Method Accommodations for Disabilities?
By federal law, landlords are must make accommodations for disabilities. For example, disabled tenants can’t be forced to deliver a check to the leasing office if they are unable to easily travel from their rental unit to the leasing office.
Sources
- 1 Ca. Civ Code § 1947.3(a)(1)
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[By default]… a landlord or a landlord’s agent shall allow a tenant to pay rent and deposit of security by at least one form of payment that is neither cash nor electronic funds transfer.
Source Link - 2 Conn. Gen. Stat. § 47a-4c
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For any lease or rental agreement executed on or after October 1, 2013, no landlord of residential real property shall require electronic funds transfer as the exclusive form of payment of rent or a security deposit. For purposes of this section, “electronic funds transfer” means any transfer of funds that is initiated through an electronic terminal, telephone or computer or magnetic tape so as to order, instruct or authorize a financial institution to debit or credit an account but shall not include any transfer originated by check, draft or similar paper instrument.
Source Link - 3 Haw. Rev. Stat. § 521-44(e)
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The landlord shall not require the delivery of any postdated check or other negotiable instrument to be used for payment of rent.
Source Link - 4 765 ILCS 705/4
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(a) As used in this Section, “electronic funds transfer” means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer’s account, including, but not limited to, through the use of an automated clearing house system.
(b) A landlord shall not require a tenant or prospective tenant to remit any amount due to the landlord under a residential lease, renewal, or extension agreement by means of an electronic funds transfer, including, but not limited to, an electronic funds transfer system that automatically transfers funds on a regular, periodic, and recurring basis.
(c) Beginning 90 days after the effective date of this amendatory Act of the 103rd General Assembly, a landlord who violates this Section is guilty of an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.(d) This Section applies to leases or agreements executed after the effective date of this amendatory Act of the 103rd General Assembly.
Source Link - 5 N.J. Stat. § 46:8-44(a) & (d)
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As used in this act:
a. “Landlord” means any person who rents or leases or offers to rent or lease, for a term of at least one month, dwelling units, except dwelling units in rental premises containing not more than two such units, or in owner-occupied premises of not more than three dwelling units, or in hotels, motels or other guest houses serving transient or seasonal guests.…d. “Electronic funds transfer” means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer’s account, including, but not limited to, through the use of an automated clearinghouse (ACH) system.
Source Link - 6 N.J. Stat. § 46:8-49.1
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No landlord shall require a tenant or prospective tenant to remit any amount due to the landlord pursuant to a residential lease, renewal, or extension agreement by means of electronic funds transfer, including but not limited to an electronic funds transfer system that automatically transfers funds on a regular, periodic, and recurring basis. A landlord who violates this section shall be subject to the penalty provisions of section 5 of P.L. 1975, c.310 (C.46:8-47).
- 7 N.Y. Real Prop. Law § 235-G
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1. A landlord shall not require a lessee or tenant to use an electronic billing and/or payment system as the only method for the payment of rent. A landlord shall not assess any fee or other charge for a lessee or tenant that chooses not to use an electronic billing and/or payment system.
2. Any agreement by a lessee or tenant of a dwelling waiving or modifying his or her rights as set forth in this section shall be void as contrary to public policy.
Source Link - 8 Tex. Prop. Code § 92.011(a)
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A landlord shall accept a tenant’s timely cash rental payment unless a written lease between the landlord and tenant requires the tenant to make rental payments by check, money order, or other traceable or negotiable instrument.
Source Link - 9 Wash. Rev. Code § 59.18.063
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(1) A landlord must accept a personal check, cashier’s check, or money order for any payment of rent made by a tenant, except that a landlord is not required to accept a personal check from any tenant that has had a personal check written to the landlord or the landlord’s agent that has been returned for nonsufficient funds or account closure within the previous nine months. A landlord must also allow for the tenant to submit a rental payment by mail unless the landlord provides an accessible, on-site location.
(2) A landlord may refuse to accept cash for any payment of rent made by a tenant, but shall provide a receipt for any payment made by a tenant in the form of cash when the landlord accepts cash.
(3) A landlord shall provide, upon the request of a tenant, a written receipt for any payments made by the tenant in a form other than cash.
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