Expert: Ken Rapoza Cruz - 7/21/2008

Question
QUESTION: My son moved to Brazil last fall and is has just accepted a new job in Rio.  He is signing his first lease tomorrow for a decent apartment (R900). The landlord wants that much and another R450 deposit on Monday.  Until now my son has been using cash (mostly mine). I asked him to find a way to give his new landlord a "certified check" or something similar and my son's new wife is telling him it doesn't exist and they should always pay cash.  I can't believe cash is the only way bills are paid and it doesn't seem too smart to pay in cash anyway.  How can my son make his monthly payments without carrying cash around?!

ANSWER: I happen to pay my rent in cash, but that is only because i know and trust the broker, who lives next door. OF COURSE there is a way to avoid paying in cash. Normally, you pay by check. OR, the landlord or broker managing the apartment sends the lessee a bill each month that you take to a bank and make a direct deposit into the landlord's account.

Brazilians dont want to work with checks because they dont trust the checks, especially from soneone they dont know. So at first your son will work with cash, but later he can, and should, set it up so he can do direct deposits into the land lord's bank account, either by going to the bank -- taking out money there and paying -- or by writing a check for the bank where the account is held.  Thats how it works.

Ken

---------- FOLLOW-UP ----------

QUESTION: Thank you so much for the quick response, it is greatly appreciated.  For today's first rent payment (and deposit) to the landlord, is it possible that my son can have a local bank prepare a cashier's check or certified check (or the Brazilian equivalent) made payable to the landlord?  Is this an acceptable practice and will a reputable landlord accept this form of payment?  Thank you again.  Renee

Answer
I have never heard of a cashiers check. He can go to a bank and ask him what options he has. I understand you are nervous that these guys are goign to take th emoney and run. He shouldnt pay any money until he has the keys to the apartment in hand and has signed a contract.

Ken