Seven states regulate which payment methods landlords may or may not accept for rent. In other states, landlords have the right to dictate which payment methods are and aren’t acceptable if they are stated in the lease agreement.
Which Rent Payment Methods are Permitted/Required in Each State?
The following seven states regulate which payment methods landlords must accept or may not require.
| 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 |
In states that don’t regulate rent payment methods, landlords are still required to act reasonably. Thus, tenants must be given at least one reasonable option for payment rent, such as by check, electronic payment, or bank transfer. For example, landlords cannot require that tenants drive to an offsite location far from the rental unit to drop off a check.
Are Landlords Required to Make Payment Method Accommodations for Disabilities?
By federal law, landlords are required to make accommodations for disabilities. For example, disabled tenants cannot be required to deliver a check to the leasing office if they are unable to easily travel from their rental unit to the leasing office.
Sources
- 1 765 ILCS 705/4
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Source Link
(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. - 2 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. … Source Linkd. “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. - 3 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).
