Natural Disaster & Rent Collection
Hello,
Curious to know what you'd do in this situation. Rent is due today (October 1st). Tenant asked if we could work with her to avoid late payment fee (assessed if rent not paid prior to or on 4th day of month) since she cannot pay today. She is asking because she is unable to withdraw money from the bank as a result of Hurricane Ian (no power). Side note... Our area of Cape Coral was thankfully spared from any severe destruction. First and foremost, we utilize Avail.Co for rent collection. It's all done online (no cash or checks required), so I don't know why she needs to go to the bank 🤔. Couple of things I am considering because I want to be a reasonable landlord/person considering the times:
A) Reminding her that she has up to the 4th day of the month to pay the rent without incurring a late fee (as per our lease).
B) As a ONE time exception, due to the extenuating circumstances resulting from Hurricane Ian, allowing her to make a payment within the first 14 days of month without incurring late fee.
Thoughts? Any insight is appreciated! Thank you!
Personally, I would give them the extension considering the circumstances but you can make it clear in your communication that by giving the extension you’re not waiving any of your rights under the lease.
I’m curious where your property is located in Cape Coral. I’m in the process of building a property in the North East in Cape Coral (still waiting on permits so construction hasn’t started) and I’m wondering how the houses faired in that area. I’m glad there wasn’t damage to your property!
@Emmanuel Sanchez Does she work in an area that was damaged? I think everyone should have been prepared to pay rent prior to the storm, unless their employer was affected and she can’t get paid right away.
In light of sounding like a xxxxxxx, i like your ideas and verbiage you have listed. We too give the one time rule
#2 General Landlording & Rental Properties Contributor
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#2 General Landlording & Rental Properties Contributor
I would let her this one time. As you said remind her of the grace period. I don't think she'd need a 14 day grace period. While your part of Florida might have had less damage, you don't know where her bank is based.
This sounds strange due to the fact that you use online rent collection however I'm assuming the real issue is that she ran into some expenses and is trying to delay payment until her next payday. I would still grant it and waive the fee but let them know this is a 1 time thing. You didn't mention this is a pattern with a tenant so I assume they have been good until now so no reason to let relations suffer during a natural disaster.
As COVID hit in Spring 2020, one of our tenants asked us about a rent payment delay. We replied something to the effect of, "We appreciate the request given the pandemic and we're all in this together. Please send us documentation that you've applied to the state assistance programs and we'll quickly respond with a rent deferral plan." The response: crickets.
With our tenants, we always ask for documentation and we usually are willing to have a one-time conversation about delayed rent and/or a late fee waiver. We'd offer a late fee waiver as you have here, subject to documentation.
Best wishes to you!
Quote from @Emmanuel Sanchez:
Do you have a history with this renter? If she made timely payments for the last six months and she's proactively reaching out to explain the nature of the delay, doesn't that indicate she's being honest? There is a major storm knocking out power, closing businesses, and otherwise creating problems. It only makes sense to be understanding.
Quote from @Emmanuel Sanchez:
Hello,
Curious to know what you'd do in this situation. Rent is due today (October 1st). Tenant asked if we could work with her to avoid late payment fee (assessed if rent not paid prior to or on 4th day of month) since she cannot pay today. She is asking because she is unable to withdraw money from the bank as a result of Hurricane Ian (no power). Side note... Our area of Cape Coral was thankfully spared from any severe destruction. First and foremost, we utilize Avail.Co for rent collection. It's all done online (no cash or checks required), so I don't know why she needs to go to the bank 🤔. Couple of things I am considering because I want to be a reasonable landlord/person considering the times:
A) Reminding her that she has up to the 4th day of the month to pay the rent without incurring a late fee (as per our lease).
B) As a ONE time exception, due to the extenuating circumstances resulting from Hurricane Ian, allowing her to make a payment within the first 14 days of month without incurring late fee.
Thoughts? Any insight is appreciated! Thank you!
If they paid on time historically, I’d give them some time.
I would ask for more info. If it's a legit reason she should be willing to explain and the reason should pass the smell test. If she gets evasive/ defensive I would be skeptical.
Quote from @Whitney Breedlove:Thanks for your response Whitney. Based on most suggestions, I ultimately landed on asking by when she would be able to pay, granted an extension to that date and set clear expectations that this was a one time exception given the extenuating circumstances.
Personally, I would give them the extension considering the circumstances but you can make it clear in your communication that by giving the extension you’re not waiving any of your rights under the lease.
I’m curious where your property is located in Cape Coral. I’m in the process of building a property in the North East in Cape Coral (still waiting on permits so construction hasn’t started) and I’m wondering how the houses faired in that area. I’m glad there wasn’t damage to your property!
My property is also in the North East Cape. Near Kismet Pkwy E and Del Prado Blvd N. Thankfully very minor cosmetic damage. I'd be happy to connect if you have any questions!
Quote from @Kim Meredith Hampton:
@Emmanuel Sanchez Does she work in an area that was damaged? I think everyone should have been prepared to pay rent prior to the storm, unless their employer was affected and she can’t get paid right away.
In light of sounding like a xxxxxxx, i like your ideas and verbiage you have listed. We too give the one time rule
Hi Kim! Thank you for your response. She is actually a realtor in the SWFL area. I had the same thoughts as you regarding preparedness to pay rent. But considering the situation, I decided on making a one time exception of waiving the late fee and accepting a payment for October 6th.
Quote from @Theresa Harris:
I would let her this one time. As you said remind her of the grace period. I don't think she'd need a 14 day grace period. While your part of Florida might have had less damage, you don't know where her bank is based.
Thanks for your insight Theresa! I was advised that I ask her when she would be able to pay and to use that as the extension date, as opposed to defaulting to a 14 day grace period.
Quote from @Nathan Gesner:
Quote from @Emmanuel Sanchez:
Do you have a history with this renter? If she made timely payments for the last six months and she's proactively reaching out to explain the nature of the delay, doesn't that indicate she's being honest? There is a major storm knocking out power, closing businesses, and otherwise creating problems. It only makes sense to be understanding.
Hi Nathan! It’s a new lease, so it’s her first time. This month was the first payment due (excluding the 1st month that she gave for September upfront). I was holding my breath for October, as I knew it would be the “first test” of her ability to make payments on time. I’m hoping it is just an anomaly because of Hurricane Ian and not a continued pattern.
Quote from @Greg R.:
I would ask for more info. If it's a legit reason she should be willing to explain and the reason should pass the smell test. If she gets evasive/ defensive I would be skeptical.
Hi Greg! She had mentioned that she was unable to get any money out of the bank due to the power outages from Hurricane Ian. We utilize Avail.Co for rent collection, so everything is online. When I reminded her that she could actually pay rent online with either a credit card, debit card, savings or checking bank account, she shared that she had to move funds from one account to another.
Quote from @Allen Wu:
Quote from @Emmanuel Sanchez:
Hello,
Curious to know what you'd do in this situation. Rent is due today (October 1st). Tenant asked if we could work with her to avoid late payment fee (assessed if rent not paid prior to or on 4th day of month) since she cannot pay today. She is asking because she is unable to withdraw money from the bank as a result of Hurricane Ian (no power). Side note... Our area of Cape Coral was thankfully spared from any severe destruction. First and foremost, we utilize Avail.Co for rent collection. It's all done online (no cash or checks required), so I don't know why she needs to go to the bank 🤔. Couple of things I am considering because I want to be a reasonable landlord/person considering the times:
A) Reminding her that she has up to the 4th day of the month to pay the rent without incurring a late fee (as per our lease).
B) As a ONE time exception, due to the extenuating circumstances resulting from Hurricane Ian, allowing her to make a payment within the first 14 days of month without incurring late fee.
Thoughts? Any insight is appreciated! Thank you!
If they paid on time historically, I’d give them some time.
Hi Allen! It’s a new lease, so it’s her first time. This month was the first payment due.
Quote from @Ron Brady:
As COVID hit in Spring 2020, one of our tenants asked us about a rent payment delay. We replied something to the effect of, "We appreciate the request given the pandemic and we're all in this together. Please send us documentation that you've applied to the state assistance programs and we'll quickly respond with a rent deferral plan." The response: crickets.
With our tenants, we always ask for documentation and we usually are willing to have a one-time conversation about delayed rent and/or a late fee waiver. We'd offer a late fee waiver as you have here, subject to documentation.
Best wishes to you!
YES!
Quote from @Emmanuel Sanchez:
She's a new tenant claiming she has to move funds from one account to another? Unlikely.
I see red flags with this one already.
Quote from @Nathan Gesner:
Quote from @Emmanuel Sanchez:
She's a new tenant claiming she has to move funds from one account to another? Unlikely.
I see red flags with this one already.
Definitely does not leave a good impression. I am hoping this was just a "one-off." I am giving her the benefit of the doubt because of the hurricane. However, that will not be the case if there is a second occurrence.
TBH I dont see how the hurricane is affecting her ability to make an online payment. I would not stray from what the lease states. IMO your setting the tone that you are not going to follow your lease terms so why would your tenant? Could be seen as harsh but its business. Good luck and happy investing!
Quote from @Ron Brady:
As COVID hit in Spring 2020, one of our tenants asked us about a rent payment delay. We replied something to the effect of, "We appreciate the request given the pandemic and we're all in this together. Please send us documentation that you've applied to the state assistance programs and we'll quickly respond with a rent deferral plan." The response: crickets.
With our tenants, we always ask for documentation and we usually are willing to have a one-time conversation about delayed rent and/or a late fee waiver. We'd offer a late fee waiver as you have here, subject to documentation.
Best wishes to you!
Hello Ron! Thank you for the suggestion. She had mentioned that she was unable to get any money out of the bank due to the power outages from Hurricane Ian. We utilize Avail.Co for rent collection, so everything is online. When I reminded her that she could actually pay rent online with either a credit card, debit card, savings or checking bank account, she shared that she had to move funds from one account to another. Which I found odd.
Quote from @Emmanuel Sanchez:
That is a pretty common excuse, right along with "someone stole my identity and I had to lock my accounts." Yet they never have a police report or even a letter from the bank . . .
Quote from @Emmanuel Sanchez:
Quote from @Ron Brady:
As COVID hit in Spring 2020, one of our tenants asked us about a rent payment delay. We replied something to the effect of, "We appreciate the request given the pandemic and we're all in this together. Please send us documentation that you've applied to the state assistance programs and we'll quickly respond with a rent deferral plan." The response: crickets.
With our tenants, we always ask for documentation and we usually are willing to have a one-time conversation about delayed rent and/or a late fee waiver. We'd offer a late fee waiver as you have here, subject to documentation.
Best wishes to you!
Hello Ron! Thank you for the suggestion. She had mentioned that she was unable to get any money out of the bank due to the power outages from Hurricane Ian. We utilize Avail.Co for rent collection, so everything is online. When I reminded her that she could actually pay rent online with either a credit card, debit card, savings or checking bank account, she shared that she had to move funds from one account to another. Which I found odd.
Feels like she is either unclear or trying to leverage the storm to her advantage. My bet is the latter.