When managing rental properties, landlords often look for convenient ways to collect rent, such as Zelle, direct deposit, or other electronic payment methods. However, these seemingly convenient options can create serious legal complications—especially when a tenant is in default and eviction proceedings have commenced.
The Risk of Inadvertent Waiver
Under Florida law, accepting rent payments after filing an eviction can be deemed a waiver of the eviction action. Florida courts have repeatedly held that a landlord who accepts rent after initiating an eviction may be seen as reinstating the tenancy, potentially forcing them to start the eviction process over from scratch.
Why Zelle and Direct Deposit Pose a Problem
Unlike traditional rent collection methods, where a landlord can physically accept or reject a payment, Zelle and direct deposit do not provide landlords with control over incoming funds. If a tenant deposits money into a landlord’s account—whether the landlord wants to accept it or not—the court may view this as a voluntary acceptance of rent, potentially jeopardizing the eviction case.
Some common scenarios include:
- Tenant Makes a Partial Payment – If a tenant in default makes a partial rent payment via Zelle, the landlord may unintentionally waive their right to proceed with eviction.
- Tenant Deposits Money Without Authorization – If the tenant has the landlord’s banking information, they may send a payment at any time, including after the eviction has been filed, which could complicate proceedings.
- Lack of Recourse to Reject Payments – Unlike physical checks, which a landlord can refuse to cash, or money orders, which can be returned, electronic payments are instant and often irreversible.
Best Practices for Landlords
To protect their legal rights and avoid unwanted complications, landlords should take proactive steps to maintain control over rent payments:
1. Use a Payment System That Allows Rejection
Consider using rent collection platforms that give landlords the ability to approve or deny payments before they are processed. Many property management software options include features that allow landlords to prevent unwanted payments.
2. Specify Acceptable Payment Methods in the Lease
Clearly outline in the lease agreement what forms of payment are accepted and state that Zelle, direct deposits, or other uncontrollable electronic payments are not permitted. This gives the landlord legal grounds to dispute any unauthorized payment attempts.
3. Close Payment Channels When Eviction Is Pending
If eviction proceedings are underway, consider closing the Zelle account or changing the bank account details to prevent tenants from making deposits that could be construed as acceptance of rent.
4. Return Unauthorized Payments Immediately
If a tenant deposits funds into an account without permission, the landlord should immediately return the money and notify the tenant in writing that the payment was not accepted. Documenting this action may help in court if the tenant later argues that rent was accepted.
5. Consult with an Attorney
Given the complexities of Florida’s eviction laws, landlords should consult with an experienced landlord-tenant attorney before accepting any payments from a tenant in default. A lawyer can help ensure that an eviction case proceeds without unnecessary delays or legal setbacks.
Conclusion
While Zelle and direct deposit may seem like efficient ways to collect rent, they can create serious legal risks for landlords when an eviction is in progress. By maintaining control over payment methods and following best practices, landlords can avoid inadvertently waiving their rights and ensure that eviction proceedings are handled smoothly and effectively.
For more legal guidance on Florida evictions, contact our firm today.