Landlord insists on cash-only rent. Is this legal?

[SopranoKris]

What is the name of your state (only U.S. law)? Illinois

Apartment is located in downtown Chicago. 2 roomates, signed lease does not state method of payment. Landlord insists on cash-only payments. Will not take cashier's check, money order or personal check.

This seems fishy to me, like he's trying to hide income from the IRS. Can he be forced to accept other forms of payment? What recourse do we have?

 

[Mass_Shyster]

Pay cash, in person, and get a receipt.

 

[SopranoKris]

He does give a receipt. It's handwritten.

However, we dont' feel comfortable a) carrying that much cash around from downtown to home to pay the rent and b) that he's trying to avoid a paper trail of where the cash is coming from to avoid IRS issues. I don't see why he wouldn't accept a cashier's check. I'd feel safer carrying a check than cash and that way, I also have a "receipt" of the transaction through my own banking institution.

 

[Cvillecpm]

That's an OLD FASHIONED receipt.....it is legal

 

[SopranoKris]

But the question is whether is LEGAL for him to say "cash only" for rent payment, especially when it's not specifically stated in the lease.

 

[Cvillecpm]

Yes - it's legal for him to say "pennies only"...the taking of a personal check is a BUSINESS DECISION and BUSINESSES have the right to demand payment in whatever form they wish....businesses do not have to take personal checks.

 

[Zigner]

Yes - it's legal for him to say "pennies only"...the taking of a personal check is a BUSINESS DECISION and BUSINESSES have the right to demand payment in whatever form they wish....businesses do not have to take personal checks.

Have you researched the law in the poster's state? For example, in California, this action would be illegal. Of course, California is not Illinois - which is why I asked if you researched it.

ETA: Poster is not asking about a "personal check"

 

[Cvillecpm]

Landlords insisting on CASH ONLY is legal in CA...speaking English may not be; however, many landlords in SFO require CASH and it is allowed in their rent stabilization regs if it is in their lease originally...tenants can either agree and move in, or not and rent elsewhere.

 

[Zigner]

Landlords insisting on CASH ONLY is legal in CA...speaking English may not be; however, many landlords in SFO require CASH and it is allowed in their rent stabilization regs if it is in their lease originally...tenants can either agree and move in, or not and rent elsewhere.

Exactly...
What is happening in our OP's case would be illegal in California.

 

[Cvillecpm]

OP writes...."signed lease does not state method of payment" which means that the landlord can DESIGNATE what form of payment he wants...pennies, beans, etc.

 

[Zigner]

OP writes...."signed lease does not state method of payment" which means that the landlord can DESIGNATE what form of payment he wants...pennies, beans, etc.

Ummm - no. It means the opposite. If it's not stated in the lease, it would revert to what is legally allowed. Which brings us back to: Did you research Illinois law on this? Because, if the same situation were to occur in California, the LL would be wrong. I do understand that the OP is in Illinois and California law doesn't apply to Illinois.

 

[Cvillecpm]

....by your reasoning, OP can offer a personal check/note and the landlord has to TAKE IT? I don't think so.

Landlord does not have to take a personal check if their business practice is CASH.

 

[davew128]

....by your reasoning, OP can offer a personal check/note and the landlord has to TAKE IT? I don't think so.

Landlord does not have to take a personal check if their business practice is CASH.

He does if state law dictates it.

Example: DirecTV requires that purchasers of all new receivers from a retail location pay via credit card, primarily becuase they like to track who bought the receiver in the event it gets activated by someone else (black market - usually in Canada). Commonwealth of Massachusetts puts their foot down and says no, in our state any retail sales establishment must accept cash if offered so if you go to a Best Buy in Mass versus say New Hampshire and want to buy DirecTV's newest HD/DVR receiver, you can pay for it with cash in Mass but not in NH because NH doesn't have the same payment tender laws.

By the way, FedEx dropoff locations had the same problem and had to put IN cash registers instead of just taking deliveries with a Fedex or credit card number for payment.

 

[FarmerJ]

You can feel free to ask the LL if you can pay your rent to a bank account set up for rent payment. Does your own bank offer EFT accounts ? OR another method like a cashiers check from your bank rather than personal check. As far as your being uncomfortable carrying cash then perhaps its time to find a hidden money pouch . My aunt frequently used the twin bank method. Your LL has every right to refuse alternate methods of payment other than cash.

 

[Zigner]

....by your reasoning, OP can offer a personal check/note and the landlord has to TAKE IT? I don't think so.

Landlord does not have to take a personal check if their business practice is CASH.

Oh alright then...here is the information from the California Department of Consumer Affairs: ( http://www.dca.ca.gov/publications/landlordbook/living-in.shtml )

Check or Cash?

The landlord or landlord's agent normally cannot require you to pay rent in cash. However, the landlord or agent can require you to pay rent in cash if, within the last three months, you have paid the landlord or agent with a check that has been dishonored by the bank. (A dishonored check is one that the bank returns without paying because you stopped payment on it or because your account did not have enough money in it.)

In order to require you to pay rent in cash, the landlord must first give you a written notice stating that your check was dishonored and that you must pay cash for the period of time stated by the landlord. This period cannot be more than three months after you:

* ordered the bank to stop payment on the check, or
* attempted to pay with a check that the bank returned to the landlord because of insufficient funds in your account.

I understand that what I posted is NOT a link to the applicable law. I really didn't have the energy to look for it right now, but if you continue, I will