Post-Dated Checks – Medieval?

Once in a while, I would get prospective tenants complaining about the need for post-dated checks (PDCs) for property rentals. This issue is common for foreign tenants new to the country since banks require foreigners to live there for at least six months (aside from other requirements). So these foreigners would bring up how they merely deposit the monthly payments directly to the lessor's account in their country.

So are issuing PDCs a medieval practice that should be abolished?

Here are some reasons why landlords in the Philippines STILL prefer post-dated checks over direct deposit arrangements:

1. It prevents the "I forgot to pay" scenario or, in some cases, the "I transferred to your bank account; didn't you get it?"

2. The tenant couldn't "ghost" the lessor. The lessor does not have to remind the tenant to pay; he could deposit the check.

3. If a check is unfunded, the issuer may be liable for estafa. It's easier for a lessor to prove non-payment with a bounced check.

One solution I've done for some foreign clients would be to have their company/colleague issue the PDCs for them. Once they have their checking account, the old checks are replaced with their own. However, the check issuer must know they will be liable for estafa should the PDCs be unfunded.

Or, if the lessor feels comfortable with the tenant, have him make payments in advance (i.e., a few days before the actual due date) to have some leeway for the payment.