I have a tenant who regularly makes rent late. She tells me she can't make rent all the time because of her mother's hospitable bills and she lives paycheck to paycheck with her kids, but I feel like thats not a good excuse to ALWAYS be late on rent. Should I feel bad about kicking her out? What should I do?
@John Etisarapamai There is almost always an excepion to the rule and as the property owner it is always your discretion but I would say late fees and then eviction. She should be able to understand that it would be inexcusable for her employer to pay her late so why is it ok for her to pay you late. Once is forgivable, twice is questionsable, three times is a pattern.
Plan on them being late every month and take your sweetie on a date and let the late fee pay for it.
Weigh the pros and cons and consider how their late payments affect your finances. For owners who have a mortgage on the property and rely on the rent payments to cover the mortgage, consistent late payments are a deal breaker. For other investors, the late payments are not a problem as long as the full balance is paid by the end of each calendar month, late fee included. Also know the condition of your property; have they lived there a long time and will you need a more comprehensive rent-ready? What is your anticipated vacancy period if you do evict? Maybe you can raise the rent next time around, maybe that is unrealistic. These are all the factors we advise an owner to consider.
Also if you get multiple doors the late fees really add up nicely. If you get renters that are not eviction late, but simply only a little late then it should bring a twinkle to your eyes instead of a tear.