Posted over 10 years ago

Late Rent - Habitual

I have a relatively new tenant. I didn't even notice that she was late last month, but she told me she put the wrong zip code and the mail was returned.

This month, I asked her if it was sent via text. She told me it was sent on 10/31. But I never received it. I said it's the 2nd month, so there's late fee. She said she sent out another one on the 6th. But I didn't get it on the 9th.

On the 9th, I saw a blog that describes exactly what's happening to me!!

Please read here for ultra awesome tips for solving late rent issue: http://www.biggerpockets.com/forums/52/topics/105752

So I sent a warning as advised from the forum:

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Dear <tenant>,

This letter is a formal notice to you demanding that you make immediate payment of the unpaid rent due under the terms of the rental agreement covering the following property:

11/1/2013 November Rental Payment $xxx

11/3/2013 Late Fee Charge - $xx

____________

Total $xxx

As of November 9, 2013, your payment is 9 days past due. Your rent was due on 11/1/2013 at <rental address>. In rental agreement, it was stated that "tenants understand that this may require early mailing". You may choose to set up recurring payment or direct deposit through your bank. Please contact me if you have any question.

Additional late fee charge will be applied if payment is not received by <today's date +5>.

This is a serious matter and your urgent attention is required. Failure to act promptly or repeat offence may lead to eviction proceedings. If eviction is sought, you may be responsible for additional charges, such as court and attorney's fees, and your credit rating could be affected.

Sincerely,

Kelly

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Within one hour, she responded. She asked if she can transfer me money or send it again... blah blah..

I told her I will stop by to pick up on 11/11 630 pm and help her set up recurring payment.

Tenant: no response

Me: wrote again to confirm 6:30 is good time

Tenant: no response for another almost a day

Me: texted her to confirm

Tenant: I might not be home at 630.. can I just transfer you the money online and you give me the account info?

Me: what time will you be home?

Tenant: No later than 830

Me: I will see you at 830

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Got there at 830, and I helped her set up the recurring payment. She then wrote me a check without the late fee. I said, "ughh.. you didn't include the late fee".

Tenant: "opps... I'll just write you a new one?"

Me: yes please

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When I got home I got her check. She mailed it November 8th!!!

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I sent her another email with the check and the post date on the envelop...

"Just got the check, I have tore it up. I am sending you a picture of it. It is posted as November 8th. I really don't want to have to knock on the door to collect rent. Please be open with me and let me know if you are going to be late. Either way, I have to enforce the late fee. My family does property management in Miami. We have learned that if the lease and standard operating procedure is not performed, we end up losing a lot and it gets messy. I don't want to go through eviction if I don't have to. It's not fun for any party.

The rent is used for mortgage, HOA, maintenance for the condo, utilities, etc. I hope that we can keep a good relationship.

Thanks,
Kelly"

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Sigh... I am not mad about the late rent. I am mad about all the lying. Please do not insult my intelligence and take advantage of my trust!

Anyhow, I will follow up how the rental property is going

Comments (3)

Like Mary, I believe you may have a professional delinquent on your hands. Send the eviction notice every month as soon as your lease permits. If there is no payment, turn it over to your attorney. You should be spending your evenings writing blogs and reading, not chasing deadbeat tenants :)

Erik Hitzelberger, over 10 years ago
I'm sorry that happened to you, but this is a professional skipper. She will be a terminally bad tenant. Next month, I can almost guarantee you she will not pay you a cent. Why? Because it's December and she knows it's almost impossible to evict at Christmastime. Most landlords are too soft to even consider it this time of year, and December is also when the courts basically shut down over the holidays and you will probably not even get a hearing before January unless you are very lucky. Skippers know this and use it to their advantage How to solve this problem in the future with all tenants: ALWAYS post the 3 day demand as soon as the grace period expires if you have one. If your grace is 3 days, then post on the 4th of the month. And DO FILE on the 8th if you don't have money by the end of the day on the 7th. Let them know they will be paying the legal fees as well. Of course I am always sugary sweet when doing this - I just say I am enforcing the lease and need to be consistent with all my tenants, it's nothing personal - I have to do this for legal reasons. With most tenants, once is enough for them to get it. If not, I tell them my lawyers take it from here and I am out of the loop, then I step back and let lawyers handle it. Could I do the processing myself? Sure, but it is worth the peace of mind and no churning stomach to not be involved - well worth the $300. Another way to solve this before you even let them move in: Never accept a tenant that doesn't have a good reference from a legitimate recent former landlord. Don't take ones that were living with their sister (or friends or whomever). Ones with bad references always say they are living with (fill in the blank) and now need to get their own space. That's how they 'wash' their bad reference off their record, by not telling you where they were really living. CALL the landlord (and look them up to be sure it isn't a friend who is acting as a former landlord.) You might need to provide a signed release by the prospective tenant in order for that person to respond to your questions. If you want a sample of this document, let me know.

Mary Hammett, over 10 years ago
This is so great! I have a blog post "Excuses why the rent is late." I laugh because otherwise I cry. In it, i say when they say they put it in the mail, dont go and check the mail box. When they say their parents sent it and it will be there anyday, don't go look. I did. I checked my mailbox everyday on multiple occasions until I got to the realization: My tenant is a boldface liar. Awakening, yes? If you want to view my video blog, here you go: http://www.affordablerealestateinvestments.com/?p=384 Let me know if you got a chuckle out of it :-)

Lisa Phillips, over 10 years ago