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Q.Can the landlord require a tenant to pay the rent in cash?
A.Only in very limited circumstances. Pursuant to Civil Code Section 1947.3, the landlord may only require a tenant to pay rent in cash if, within the last three months, the tenant has paid the rent with a check that was dishonored by the bank for either non-sufficient funds or stopped payment.
To require a tenant to pay rent in cash, the landlord must first give the tenant a written notice that: (1) says that the tenant's check was dishonored by the bank, (2) attaches a copy of the dishonored check, and (3) provides the tenant with the proper amount of advance notice (typically 30 days) from the date of the notice that the tenant must pay the rent in cash.
The period of time the landlord can require the tenant to pay cash cannot exceed three months from the date of the bank's stop payment or insufficient fund notice.
For example, assume on April 1 the tenant gives the landlord a rent check. On April 10, the landlord receives a notice from his bank stating that the tenant's check has been dishonored for Non-Sufficient Funds. On April 11, the landlord gives the tenant notice saying the check was dishonored and that the tenant must pay rent in cash for the next three months. If the requirement that the tenant pay the rent in cash changes the terms of the rental agreement, the landlord's notice will take effect in 30 days (on May 11) so the tenant would only be required to pay June and July's rent in cash.
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