Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
This is more of a vent than anything.
So the first month with a new tenant has come around and I still have no rent payment. We set it so it was due on the 5th and late by the 10th; The renter wanted to pay rent by either electronic deposit or going to my bank to deposit.
Anyway, it's the 9th and I still have nothing. His phone is conveniently disconnected as well. Failure to Pay Rent papers will be filed tomorrow if I have nothing by 3pm. It's just so frustrating! The renters I found for the upstairs unit have been great so far...sending rent early even! Apparently I didn't do as well with this guy... Maybe I'm speaking too soon, but so far it doesn't feel good.
Between 2 of 4 of my renters being behind on rent, this has really stopped me from seriously looking at purchasing my third rental. Some of my tenants were "grandfathered" in from the previous owner. My cash flow is affected; I can't get another mortgage until I get rid of these bad renters!
Rental Property Investor · Annapolis, MD · Member since 2014 · 214 posts · 140 votes
12y
The way I prevent/reduce this "game paying" or at least make my time at the courthouse worthwhile is by:
For example, if the rent is $1000 in our unit, than i write the lease for $1200 and the Tenant gets a discount if they pay by 4th of the month. My lease was looked over by a Maryland Judge and he was fine with it. According to local laws, late fees are here in MD about 3-5%. But I do not have late fees, just rent discounts for timely payments!
Each time i "file for failure to pay" rent i just write in $1200 and no late fees. And if the tenant plays with me until eviction this way i get an extra $600.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
lol Yes, it did make me smile for sure and the rent is all caught up (for now). I mailed off his receipts today and let him know about the $84 leftover to pay for December rent.
And you're right...30 days in the County. Is it 60 days in the City? If so, wow! I just can't believe all the laws in favor of the tenant there. I see what you mean about month-to-month vs. one year. That's more clear. I have considered doing month-to-month leases right from the start too...still toying with the idea.
Investor · Baltimore, MD · Member since 2013 · 205 posts · 44 votes
12y
You can evict with no reason as long as you give 60 day notice. It is called notice to vacate. Some places its 90 days to vacate. Research it. I found out about notice to vacate when I had my worst tenant ever.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
12y
@Nicole A. forget the mail. Find the bank nearest the rental unit. Open an account there and have the tenants deposit rent there. NO MORE MAIL. No more excuses. Look online, money there great. No money then late fees and eviction. At most banks you can make the account a deposit only account and sweep the funds to another account. Using the mail is so last century. What are you going to do when the PO only delivers 5 days a week? Wait longer for rent.
You can evict with no reason as long as you give 60 day notice. It is called notice to vacate. Some places its 90 days to vacate. Research it. I found out about notice to vacate when I had my worst tenant ever.
No, You cannot break a lease just becuase you give 60 day notice. You need to give 60 day notice if you are not renewing a lease in Baltimore City, 30 days in the rest of MD.
On detail that trips landlords up is the 60 days has to be before the renewal date. If the lease renews every month on the first and you notify on the 15th, they are not gone 60 days later in mid month. They would actually not need to leave until the before the 1st almost 75 days later. - Ned
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
@Bill S. Is there typically an easy way to see which renter made a deposit at the bank? If the bank gives deposit only cards, they would maybe tag it that way?
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
12y
@Nicole A. Have them write their name on the deposit slip. Use different rent amounts for each unit. ie vary by $1. Unit #1 is $601, unit #2 $602. Open an account for each unit and have the name on the account reflect the unit. Ask the bank and see what they suggest.
Cincinnati, OH · Member since 2013 · 37 posts · 7 votes
12y
I have a hard and fast rule about rent. It is due by the first (or if that is a weekend or holiday, the next legal business day). After that it is late. Although I know of someone who starts with the three-day on the 2nd, I wait until the 7th. The 3-day process in Ohio gives the tenant enough time to get their act together.
Although I do have tenants that pay me consistently late by 1 week (and I get lots of late fees), if they can't be reached by phone chances are they have no means to pay you rent and they don't want to have that discussion with you.
My advice is to start the eviction process as soon as you can. The process usually gives the tenant a few days to straighten out and avoid having to cover legal fees (which I require if I file and they want to stay in the home)... just remember not to receive partial payment because that will stall the eviction process and you could be out of even more rent long term.
@Bill S. Is there typically an easy way to see which renter made a deposit at the bank? If the bank gives deposit only cards, they would maybe tag it that way?
My bank allows the tenant to put their address into the notes field. Makes tracking the rent deposit very easy.
The only risk to doing this is the tenant could do a partial rent payment. In that case I recommend sending the money back to the tenant right away and remind them you do not accept partial payment.
Investor · Baltimore, MD · Member since 2013 · 205 posts · 44 votes
12y
Now this bug is pissing me off with non paying tenants. Just had two tenants move in last month. One past my background check and smartmove transunion. The second had some blemishes but paid the last month of her lease in advance.
I'm pretty tough with tenants. I dont take any excuses about rent. I start procedures on the 8th if rent isnt in my P.O. Box on the 7th. This still pisses me off. Baltimore city has this culture where tenants try to pay there rent last or not at all. This makes it hard for small time landlords to try to expand. Anyone from around this area with additonal info or help?
I cant speak to MD, but that does hold true in VA.
So are you saying a landlord can break a legally binding contract just by giving notice? I find that hard to believe. I scrolled though this document of Virginia landlord tenant laws and saw nothing to that effect. Virginia Landlord tenant handbook
This still pisses me off. Baltimore city has this culture where tenants try to pay there rent last or not at all. This makes it hard for small time landlords to try to expand. Anyone from around this area with additonal info or help?
Thanks in Advance
Robert,
I feel your pain. This is why many go with section 8 tenants.
The downturn in the economy has really hurt lower end tenants. One big landlord friend of mine says his collections have gone way down with the economic downturn. He has mostly market tenants and is moving towards more section 8 and program tenants.
The only suggestion I have is better screening. It sounds like you are doing some things right with screening. Are you calling past landlords? Are you visiting their current residence to see how they keep it up? Good luck - Ned
Investor · Baltimore, MD · Member since 2013 · 205 posts · 44 votes
12y
@Ned Carey might have to get tougher with more background standards. Glad Im not the only one.
@Nicole A. I do not have an extended grace period. I allow tenants to mail payments as long as they are post marked by the 5th. I use the post mark for further evidence for rent court. It keeps the tenant from arguing about late payments and charges. It also helps in court with the judge.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
@Robert Carl I think you're giving too much time. Half the time you can't even read the postmark date anyway.
I put in my lease that rent is due on the 1st and must be received by the 5th. No excuses or stories. One guy apparently mailed his rent to me three times and it still never showed. Then he went to Western Union to wire the money but the lady couldn't do it because my address was not showing up in their system; turns out, they don't need an address...only the state that receiver is in.
Then he mailed it where it required a signature and STILL didn't show. Clearly, I was being lied to and fell for it. I filed for rent court and he was magically able to get that money to me.
I'm only in B'more County, but I'd imagine in the City (if that's where you are), that the judge is just there to see if rent was paid. It's like traffic court...fast...efficient. Rent was either paid or not paid. They don't put up with the "it's in the mail" BS.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
12y
@Robert Carl you are getting what you allow. Your first step is to stop using the USPS. At a minimum make them deposit it into the bank that is nearest their unit. The best is a debiting service. It TAKES the money from their bank account on the specified day. ClearNow, who advertises on this site, does this. I use them (BTW I have no financial interest in that business - just a satisfied customer for several years). Unless your state law requires a grace period why allow it? Rent is due before the 1st and late the 1st.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
@Bill S. That is a great idea, but doesn't work for every tenant type. Some tenants aren't the type to have checking accounts. They go on all cash/money orders. Usually that also means they don't have a car, but they could take a bus to the landlord's bank (if it's not closer) and deposit. Or...just mail their money order in time. :-)
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
12y
@Nicole A. They buy their money orders somewhere, they go to work somewhere, and they buy food somewhere. The point is they are mobile and now days almost every grocery store has a bank in it. There are a number of options with people who fall in this class. The key is to create expectations up front. The mail has always been fraught with peril, get creative in figure out a way that it something the tenants don't have to do each month. If that doesn't work, figure out a way that it's 100% on them to pay rent. .
@Bill S. That is a great idea, but doesn't work for every tenant type. Some tenants aren't the type to have checking accounts. They go on all cash/money orders. Usually that also means they don't have a car, but they could take a bus to the landlord's bank (if it's not closer) and deposit. Or...just mail their money order in time. :-)
Nicole:
Just give them a deposit-only bank card and let them go to the most convenient bank branch or atm.
I have a servic where they can pay over the phone or by internet. So I have both areas covered. Tenants can mail, pay online, or by phone.
Nicole I will be changing my filing rent court papers though. By the way tenants dont tell excuses about rent because they are inform from the begining that court papers are filed regardless of the reason. My leases state that rent is due on the first. Tenants are informed that we allow a grace period until the 5th. Grace period revoked for violations and past due amounts
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
Wanted to share a story.
Recently, my 2nd floor tenants mentioned to me that they believe the 1st floor has moved in some friends from down the street. This is plausible because those people are in the property I have under contract down the street and I heard they were "moving out". Perfect. So I send a "reminder" letter to those tenants about moving people in who are not on the lease and state that I will stop by within the next 30 days to do a general inspection.
The only way I can reach this tenant is by mail or in person since his phone is off. He hasn't paid rent since he moved in but did deposit $2600 in my account a few days before eviction and called to let me know about the payment. This paid him two months of missing rent, late fees, court fees, and most of December rent. I mailed him his receipts and made it clear he owed $84 still for December since all the fees had to be paid first.
I hear nothing from him. So once it's overdue, I file again for rent court. I stopped by last weekend and saw him. Couldn't prove anyone was moved in... but he pulls out the court paper and basically says I can not charge him late fees on court fees. I explained payments go towards all unpaid rent and fees first...then the most recent rent. He either didn't understand or didn't believe me and said he won't pay it and will go to court and "will win".
I said, "I sent the rent receipt weeks before filing for rent court. If you disagreed, why didn't you call me?" He claims he didn't really look closely at it...not my problem.
Then, he also said that because he paid his Oct and Nov rent, that I must go to court and remove the judgments. Again, he's confusing civil judgments with rent judgments. He starts also spouting off random "Maryland law states" remarks, none of which I've heard about...even saying that I can not charge a disabled person so many fees because I'm essentially making it hard for him.
Finally, he shows me the court papers. I have a PM company that does court filings and appearances for me. Nothing else. So on the court paper is their name. He says "they can't keep yanking me to court. my contract is with you, not them, and I will bring this up in court." Now, that part I guess is a good question that I'll be asking the PM company today, but I suspect they're doing it right.
Anyway, this guy really loves to talk about laws and he thinks he knows it all....and how everything conveniently protects him, but not me. If he doesn't want to pay, that's fine by me because that puts him one judgement closer to getting eviction without right of redemption.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
12y
Wow. I would stop talking to him.
Here I don't have to wait to file until he is "late again" since he still owes $84. I could have ordered the set out even after he paid all but the $84. Sounds like you have people that know what they are doing so carry on.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
lol I completely agree, @Robert Carl ! I might use that line if/when I do speak to him again.
@Bill S. Yeah, I won't waste my breath next time with him. I had to file for the $84 for December because I had filed for Oct and Nov. He had not been late yet for December. He was almost up to date too if he had bothered to go ahead and send that small difference.
Investor · Baltimore, MD · Member since 2013 · 205 posts · 44 votes
12y
Why doesn't Baltimore have a 3 day pay or quit rule. It takes at the earliest 6 weeks to evict a tenant in Baltimore city. Being a market rent landlord in Baltimore with a culture of not paying rent, slum lords, and the city being tenant friendly is hell. Baltimore does not have a lot of investors who are market landlords contrary to other statements.