How to deal with consistent late payment renter?

Jacksonville, Florida
General Landlording & Rental Properties
2yFollow

How to deal with consistent late payment renter?

Michael W.
Member since 2024 · 7 posts · 4 votes

Hi,

I am an out-of-state investor and have a rental property in Jacksonville Florida that is managed by JWB, a local property management company. The renters have lived in the property for 2 years now, and we have a long-term rental agreement with them, the lease ends in January 2026. For more than a year now, the renters have never paid on time. The rent is due on the 1st of the month. Each month, they would pay a little at the beginning of the month, like a couple of hundred dollars, a little in the middle of the month, and the rest at the end of the month.

I've asked JWB if any actions are taken to address the consistent late payment. They respond that they send notice to the tenant of any outstanding balance, and the notice is valid until mid-month. When a tenant makes a payment, a new notice is sent and a new expiration date is set. I think that's how renters avoid eviction since they just make a little payment to reset the notice expiration date.

I know I am getting full payment from the renters at the end of the month despite the consistent late payments, but consistent late payments don't look good on the ledger when selling the property with the renters.

What actions could I take, if any at all, to address the issue?

Thank you!

2Reply
174 views

Most Popular Reply

Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
2y
Quote from @Michael W.:
Quote from @Peter Mckernan:
Quote from @Michael W.:

Hi,

I am an out-of-state investor and have a rental property in Jacksonville Florida that is managed by JWB, a local property management company. The renters have lived in the property for 2 years now, and we have a long-term rental agreement with them, the lease ends in January 2026. For more than a year now, the renters have never paid on time. The rent is due on the 1st of the month. Each month, they would pay a little at the beginning of the month, like a couple of hundred dollars, a little in the middle of the month, and the rest at the end of the month.

I've asked JWB if any actions are taken to address the consistent late payment. They respond that they send notice to the tenant of any outstanding balance, and the notice is valid until mid-month. When a tenant makes a payment, a new notice is sent and a new expiration date is set. I think that's how renters avoid eviction since they just make a little payment to reset the notice expiration date.

I know I am getting full payment from the renters at the end of the month despite the consistent late payments, but consistent late payments don't look good on the ledger when selling the property with the renters.

What actions could I take, if any at all, to address the issue?

Thank you!


 Would get the full payment upfront at the first of the month and if they cannot fulfill that than start the eviction process. This will go on forever till you put a stop to it or just let it go. The PM company should be managing this for you 


 I completely agree with you. That's what I think the PM should do, but they often BS their reply by saying their policy of sending a notice and resending another notice after receiving partial payment. 


 Just do not collect the small amount.. And fire that PM company 

The McKernan Group4.957 Reviews
WebsiteView Page
4Reply
See this reply in the discussion

27 Replies

Jump to latestLatest
  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    2y

    @Michael W., what about the late fee? Most every lease has a late fee specified either a flat dollar amount or a per day fee.

    I would be collecting a fair flat rate late fee and enjoy the extra income.

    My current late fee is a flat $50, but I plan to bump it to $75 for rents exceeding $1,000.

    I  had a habitually late payer pay well over $1k in late fees over their ~3-4 year tenancy. 

    3Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    2y
    Quote from @Michael W.:

    Hi,

    I am an out-of-state investor and have a rental property in Jacksonville Florida that is managed by JWB, a local property management company. The renters have lived in the property for 2 years now, and we have a long-term rental agreement with them, the lease ends in January 2026. For more than a year now, the renters have never paid on time. The rent is due on the 1st of the month. Each month, they would pay a little at the beginning of the month, like a couple of hundred dollars, a little in the middle of the month, and the rest at the end of the month.

    I've asked JWB if any actions are taken to address the consistent late payment. They respond that they send notice to the tenant of any outstanding balance, and the notice is valid until mid-month. When a tenant makes a payment, a new notice is sent and a new expiration date is set. I think that's how renters avoid eviction since they just make a little payment to reset the notice expiration date.

    I know I am getting full payment from the renters at the end of the month despite the consistent late payments, but consistent late payments don't look good on the ledger when selling the property with the renters.

    What actions could I take, if any at all, to address the issue?

    Thank you!


     Would get the full payment upfront at the first of the month and if they cannot fulfill that than start the eviction process. This will go on forever till you put a stop to it or just let it go. The PM company should be managing this for you 

    The McKernan Group4.957 Reviews
    WebsiteView Page
    0Reply
  • Ben Russell
    Member since 2023 · 50 posts · 41 votes
    2y

    It sounds like the property is not being managed well by the manager. Speak with the property Manger and ask why they are accepting partial payments after the rent is late?  Doing this will restart the eviction clock and it sounds like the tenants understand this. 

    Refer to your managment agreement and the lease.  There is likely a clause that after rent is late, payment must be made in full.  Talk to the manger and set your expectations. This should not be allowed to continue month after month.

    Regarding the late fee, more than likely, The PM is keeping it Per their agreement.

    4Reply
  • Michael W.
    OP
    Member since 2024 · 7 posts · 4 votes
    2y
    Quote from @Kevin Sobilo:

    @Michael W., what about the late fee? Most every lease has a late fee specified either a flat dollar amount or a per day fee.

    I would be collecting a fair flat rate late fee and enjoy the extra income.

    My current late fee is a flat $50, but I plan to bump it to $75 for rents exceeding $1,000.

    I  had a habitually late payer pay well over $1k in late fees over their ~3-4 year tenancy. 

    The contract with tenants has a late fee clause, and when I talked to the PM, they replied that they would remove the late fee if they paid the rent before the end of the month. The late fee is also retained by the PM, JWB, so to me, the PM, JWB, kinda encourages the tenant to consistently pay rent late.

    0Reply
  • Michael W.
    OP
    Member since 2024 · 7 posts · 4 votes
    2y
    Quote from @Peter Mckernan:
    Quote from @Michael W.:

    Hi,

    I am an out-of-state investor and have a rental property in Jacksonville Florida that is managed by JWB, a local property management company. The renters have lived in the property for 2 years now, and we have a long-term rental agreement with them, the lease ends in January 2026. For more than a year now, the renters have never paid on time. The rent is due on the 1st of the month. Each month, they would pay a little at the beginning of the month, like a couple of hundred dollars, a little in the middle of the month, and the rest at the end of the month.

    I've asked JWB if any actions are taken to address the consistent late payment. They respond that they send notice to the tenant of any outstanding balance, and the notice is valid until mid-month. When a tenant makes a payment, a new notice is sent and a new expiration date is set. I think that's how renters avoid eviction since they just make a little payment to reset the notice expiration date.

    I know I am getting full payment from the renters at the end of the month despite the consistent late payments, but consistent late payments don't look good on the ledger when selling the property with the renters.

    What actions could I take, if any at all, to address the issue?

    Thank you!


     Would get the full payment upfront at the first of the month and if they cannot fulfill that than start the eviction process. This will go on forever till you put a stop to it or just let it go. The PM company should be managing this for you 


     I completely agree with you. That's what I think the PM should do, but they often BS their reply by saying their policy of sending a notice and resending another notice after receiving partial payment. 

    1Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    2y
    Quote from @Michael W.:
    Quote from @Peter Mckernan:
    Quote from @Michael W.:

    Hi,

    I am an out-of-state investor and have a rental property in Jacksonville Florida that is managed by JWB, a local property management company. The renters have lived in the property for 2 years now, and we have a long-term rental agreement with them, the lease ends in January 2026. For more than a year now, the renters have never paid on time. The rent is due on the 1st of the month. Each month, they would pay a little at the beginning of the month, like a couple of hundred dollars, a little in the middle of the month, and the rest at the end of the month.

    I've asked JWB if any actions are taken to address the consistent late payment. They respond that they send notice to the tenant of any outstanding balance, and the notice is valid until mid-month. When a tenant makes a payment, a new notice is sent and a new expiration date is set. I think that's how renters avoid eviction since they just make a little payment to reset the notice expiration date.

    I know I am getting full payment from the renters at the end of the month despite the consistent late payments, but consistent late payments don't look good on the ledger when selling the property with the renters.

    What actions could I take, if any at all, to address the issue?

    Thank you!


     Would get the full payment upfront at the first of the month and if they cannot fulfill that than start the eviction process. This will go on forever till you put a stop to it or just let it go. The PM company should be managing this for you 


     I completely agree with you. That's what I think the PM should do, but they often BS their reply by saying their policy of sending a notice and resending another notice after receiving partial payment. 


     Just do not collect the small amount.. And fire that PM company 

    The McKernan Group4.957 Reviews
    WebsiteView Page
    4Reply
  • Michael W.
    OP
    Member since 2024 · 7 posts · 4 votes
    2y
    Quote from @Ben Russell:

    It sounds like the property is not being managed well by the manager. Speak with the property Manger and ask why they are accepting partial payments after the rent is late?  Doing this will restart the eviction clock and it sounds like the tenants understand this. 

    Refer to your managment agreement and the lease.  There is likely a clause that after rent is late, payment must be made in full.  Talk to the manger and set your expectations. This should not be allowed to continue month after month.

    Regarding the late fee, more than likely, The PM is keeping it Per their agreement.


     Thank you. I will keep talking with the PM and set the expectations as advised. I agree that this shouldn't happen month after month. 

    1Reply
  • Michael W.
    OP
    Member since 2024 · 7 posts · 4 votes
    2y
    Quote from @Peter Mckernan:
    Quote from @Michael W.:
    Quote from @Peter Mckernan:
    Quote from @Michael W.:

    Hi,

    I am an out-of-state investor and have a rental property in Jacksonville Florida that is managed by JWB, a local property management company. The renters have lived in the property for 2 years now, and we have a long-term rental agreement with them, the lease ends in January 2026. For more than a year now, the renters have never paid on time. The rent is due on the 1st of the month. Each month, they would pay a little at the beginning of the month, like a couple of hundred dollars, a little in the middle of the month, and the rest at the end of the month.

    I've asked JWB if any actions are taken to address the consistent late payment. They respond that they send notice to the tenant of any outstanding balance, and the notice is valid until mid-month. When a tenant makes a payment, a new notice is sent and a new expiration date is set. I think that's how renters avoid eviction since they just make a little payment to reset the notice expiration date.

    I know I am getting full payment from the renters at the end of the month despite the consistent late payments, but consistent late payments don't look good on the ledger when selling the property with the renters.

    What actions could I take, if any at all, to address the issue?

    Thank you!


     Would get the full payment upfront at the first of the month and if they cannot fulfill that than start the eviction process. This will go on forever till you put a stop to it or just let it go. The PM company should be managing this for you 


     I completely agree with you. That's what I think the PM should do, but they often BS their reply by saying their policy of sending a notice and resending another notice after receiving partial payment. 


     Just do not collect the small amount.. And fire that PM company 


     Thank you very much for the advice. I will push back on the PM as you suggested.

    0Reply
  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    2y
    Quote from @Michael W.:
    Quote from @Kevin Sobilo:

    @Michael W., what about the late fee? Most every lease has a late fee specified either a flat dollar amount or a per day fee.

    I would be collecting a fair flat rate late fee and enjoy the extra income.

    My current late fee is a flat $50, but I plan to bump it to $75 for rents exceeding $1,000.

    I  had a habitually late payer pay well over $1k in late fees over their ~3-4 year tenancy. 

    The contract with tenants has a late fee clause, and when I talked to the PM, they replied that they would remove the late fee if they paid the rent before the end of the month. The late fee is also retained by the PM, JWB, so to me, the PM, JWB, kinda encourages the tenant to consistently pay rent late.

    @Michael W., I self manage so I don't know how common it is or isn't for PM's to retain the late fee.

    My thinking is this. My lease states that any fees etc are "payable as rent" and the PM is set to collect a percentage of rent collected. So, if the late fee is $50 and the PM gets 10% of rent, they should get $5 and I get the remaining $45. That would be my expectation and what I would try to negotiate.

    If I wasn't collecting a late fee for a late payer, I would move to evict. As soon as they don't pay in full at the beginning of the money and any grace period passes I would issue a 10 day pay or quit notice and if they didn't pay in full in those 10 days I go to court and evict and that would be the end. 

    0Reply
  • Jim WellingtonBusiness Member
    Real Estate Agent · Saint Clair Shores, MI · Member since 2022 · 73 posts · 51 votes
    2y

    Welcome to being a landlord. You’re unfortunately always going to have those types of tenants. I’ve had one for 5 years. Every month she’s late. Pays the late fee and pays in installments. Half now and half later. 

    Do I like it?  No. 

    But she doesn’t owe me any money after 5 years. She takes care of the place, she’s is a good neighbor in the community, and she’s clean. 

    Again I don’t love it but you could do worse. 

    [email protected]586-204-2010
    3Reply
  • Michael W.
    OP
    Member since 2024 · 7 posts · 4 votes
    2y
    Quote from @Kevin Sobilo:
    Quote from @Michael W.:
    Quote from @Kevin Sobilo:

    @Michael W., what about the late fee? Most every lease has a late fee specified either a flat dollar amount or a per day fee.

    I would be collecting a fair flat rate late fee and enjoy the extra income.

    My current late fee is a flat $50, but I plan to bump it to $75 for rents exceeding $1,000.

    I  had a habitually late payer pay well over $1k in late fees over their ~3-4 year tenancy. 

    The contract with tenants has a late fee clause, and when I talked to the PM, they replied that they would remove the late fee if they paid the rent before the end of the month. The late fee is also retained by the PM, JWB, so to me, the PM, JWB, kinda encourages the tenant to consistently pay rent late.

    @Michael W., I self manage so I don't know how common it is or isn't for PM's to retain the late fee.

    My thinking is this. My lease states that any fees etc are "payable as rent" and the PM is set to collect a percentage of rent collected. So, if the late fee is $50 and the PM gets 10% of rent, they should get $5 and I get the remaining $45. That would be my expectation and what I would try to negotiate.

    If I wasn't collecting a late fee for a late payer, I would move to evict. As soon as they don't pay in full at the beginning of the money and any grace period passes I would issue a 10 day pay or quit notice and if they didn't pay in full in those 10 days I go to court and evict and that would be the end. 


     Thank you for your advice. Your and other's advice made me feel better that I am not alone thinking it's not okay to continue allowing such behavior. I do not like evicting someone, but I think eviction should be in consideration to stop it. Thanks again!

    0Reply
  • Michael W.
    OP
    Member since 2024 · 7 posts · 4 votes
    2y
    Quote from @Jim Wellington:

    Welcome to being a landlord. You’re unfortunately always going to have those types of tenants. I’ve had one for 5 years. Every month she’s late. Pays the late fee and pays in installments. Half now and half later. 

    Do I like it?  No. 

    But she doesn’t owe me any money after 5 years. She takes care of the place, she’s is a good neighbor in the community, and she’s clean. 

    Again I don’t love it but you could do worse. 


     Wow, I am kinda jealous of you having a tenant who takes care of the property and is willing to pay an extra late fee. My tenant is not taking good care of the property well like yours and still paying rent late. Thank you for sharing your story.

    0Reply
  • Philip S.Pro Member
    Member since 2024 · 5 posts · 1 vote
    2y

    As a property manager myself, as long as they are taking care of my unit and paying within a reasonable time, I am going to consider it as additional income (through the late fee) for the unit. Many people are going through hard times. It helps you manage the relationship better in my opinion, depending on the tenants. You just have to be careful and not let it get out of control. 

    1Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    Hey Michael, seems you already have some good input here but I'll chime in.

    You're in Jacksonville which isn't exactly a high-income area. Those in higher end markets may not completely understand.

    It does suck your PM retains the late fee. So you really aren't being compensated for the inconvenience. 

    You mentioned the concern of showing a weak ledger when selling. Are you planning to sell? If not, I'd be pretty lenient here. 

    I'm much prefer fully paid, late rent than going through an eviction. That will cost you months of no rent, turnover costs, and the risk of getting an even worse tenant. 

    That doesn't seem like a great risk/reward to me.

    I also don't know the eviction process in Jacksonville/FL but I'd talk to your PM. Correcting this could be as simple as communicating to your PM that you'd like to start the eviction process as soon as rent is late. 

    In Michigan (where I invest) that's started by sending a 7-day notice to vacate. You don't necessarily need to go through the entire eviction process, but it's nice to start it and have time on your side. 

    Doing this might be enough to get the tenants back to paying on time (assuming they ever did). 

    2Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I only have had a few problem tenants. I have one that pays in pieces through the first two weeks of the month and usually finds something to complain about to get attention diverted. 

    My PM company does a great job overall, we get paid by mid month and with late fees. I'm not saying anything, until it's time to renew. And I won't renew them.

    In life, it's usually just best to bite and not bark when it counts. The barking before goes little if it's out of your control, and when you can control what you control just bite hard once. It'll send the message to anyone listening. 

    1Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    2y

    @Michael W. I’d send a certified, return receipt letter to the property management company instructing them to no longer accept ANY partial payments and to send them back.

    I’d have them send a formal certified return receipt letter to the tenants of this policy notifying them of the late payment date whether it’s the 3rd or the 5th of the month and that if payment isn’t made in full by that date eviction process will begin.

    End of story.

    2Reply
  • Diane Chapman
    New to Real Estate · MI · Member since 2024 · 70 posts · 22 votes
    2y

    Here's a curious 🤔 question, can you switch to a different more effective Property Manager or management company? Or is this Not a good practice?

    0Reply
  • Diane Chapman
    New to Real Estate · MI · Member since 2024 · 70 posts · 22 votes
    2y

    Very interesting advice & tips, duly noted.

    0Reply
  • Otis Sanders
    Investor · West Palm Beach, FL · Member since 2017 · 94 posts · 32 votes
    2y

    @Michael W.

    I charge an additional $10 per day after the 5th (including the $50 late fee) this could be something you try at renewal if you want to keep them in the unit.

    0Reply
  • Ben Russell
    Member since 2023 · 50 posts · 41 votes
    2y

    In regards to the comments about just accepting the late payment and feeling lucky you get paid by the end of the month....

    That is an option and so far you've been paid each month, so just cross your fingers it continues. However, the writing is on the wall that both the tenant and the PM are not doing what they are supposed  to. This is setting you and your business up for failure. 

    The tennant has shown they are either unable to afford the unit, or unwilling to follow the rules (lease) and are testing the boundaries of what the PM will allow. More bad behavior will come.  This is just the start. 

    As to the PM, they have shown they are unable to enforce the most basic rule of the lease. Pay on time.  You are paying the PM for their ability to correctly and successfully manage a business. This is a very strong indicator they are not up to the task. If they are failing in this regard, it is just the tip of the iceberg of their poor management.  Remember they are responsible for every aspect of managing your business. Their inability to manage can cost you thousands and thousands of dollars.  

    This is a business, plain and simple. The house is your product, the tenant is the customer and the PM is the manager. You are the CEO.  Would a big business accept how things are going?  If not, you are in charge. Take steps to fix it. 

    One more thing to consider.  Everyone has problems in their lives. That is unfortunate and it would be great to be in a position to help everyone that says they need it.  However, unless you want to make other people's problems your own, take your conscious out of the decision making process.  Use the written rules you both laid out.  This is the most fair and equitable way to operate a business. 

    1Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Michael W. why are you worried about pennies, when you are getting dollars?

    Just a metaphor regarding why you're sweating the small stuff so much?

    You probably have a Class C property with a tenant having a credit score under 660, probably under 620.

    Google the expected default rate for someone with those scores.

    You should also do more research about Class C properties and decide if it's what you want to stay with. If not, sell and reinvest in a Class A or B property where they tenants will be more predictable.

    Logical Property Management4.9454 Reviews
    WebsiteView Page
    0Reply
  • Brian Kloft
    Investor · Arizona & Oregon Coast · Member since 2023 · 128 posts · 113 votes
    2y

    All of these people on here telling you to just evict the person. Great for them but they won't be paying the price for that decision, you will. You hired a property manager for a reason so let them keep doing their job. You hired them to collect the rent and you have said that they are doing that. I understand that you are frustrated that it is not all up front like you expected but they are getting it done and that is what matters to your pocket book. I have been managing properties for others and myself for more than 25 years. My guess is that most of the people here have only a few rentals. The more properties you have the more likely you will run into this. It is a numbers game and it sounds like you just got unlucky and got it early. This practice is not uncommon. The goal is to collect the rent and avoid eviction. Working with your tenant will get you a lot further than constantly fighting your tenant. Over the years I have had many tenants that have had to break their payments up into 2 or 3 payments, and they were tenants for 5-10+ years. It is not always a sign that things are going to go south. As long as they get paid by the end of the month they are fine. When it goes beyond the end of the month that is when it can start to become a problem.

    What truly is your alternative? Yes you can evict them. What is that going to cost you? Depending on the state it could take you 1 to 2 months for the eviction and then potentially another month to get the property back. Now the tenant is out of the house you will have to fix it up so you are probably talking $1,000 - $5,000 for that, depending on how much needs to be done. You are also talking about another 1-2 months before a tenant moves in. Plus there is a leasing fee. So at a minimum you are probably looking at $3,000-$4,000 expense to you but that number could easily be up to $10,000 depending on your state's eviction proceedings and the condition of the property. To me this is not worth it to get rid of the annoyance of the pm company taking partial payments over the month. This is also why, unlike others, I said that they are doing their job. I think the better pm company saves me the $5-10k and does the extra work that they are doing in collecting the rent in payments and sending out all of the notices. Make no mistake, doing this is extra work for them. From what you said, while they keep late fees, they waive those late fees if the tenant pays the rent in full by the end of the month so they are not making anything on this.

    I understand that it can be frustrating seeing this happen. This may sound bad but stop looking at the property financials mid month. Don't worry about it until after the month. There is no reason to be looking at the financials mid month. 

    As far as you being worried that the consistent late payments won't look good when you try to sell the property. It sounded like this is a single family rental or condo, but either way just a single unit. Are you planning on selling it any time soon? If you are, is this a specific market where there are a lot of places being sold to investors with tenants in them already? For single family homes the value is going to be based on the house itself. When you go to sell it I have found that most of the time it is best to sell it vacant. There are still a lot more home buyers out there than investors so if you are trying to sell it to just an investor you are going to limit your market and most investors are looking for a deal while many home buyers are just looking to get a home at a fair price and not have to compete against investors. If the property is a multi tenant property then that might have an impact, but even then I doubt it. Report ledgers are monthly and you don't see partial payments on them and most evaluations are looked at that way. 

    2Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y
    Quote from @Ben Russell:

    However, the writing is on the wall that both the tenant and the PM are not doing what they are supposed  to. This is setting you and your business up for failure. 

    The tenant has shown they are either unable to afford the unit, or unwilling to follow the rules (lease) and are testing the boundaries of what the PM will allow. More bad behavior will come.  This is just the start. 

    As to the PM, they have shown they are unable to enforce the most basic rule of the lease. Pay on time.  You are paying the PM for their ability to correctly and successfully manage a business. 

    Best answer on this topic ^^^. The signs are everywhere and the proverbial writing is on the wall. If you allow this to continue, you will be back here in a few months asking us what to do next. First, get rid of the PM. Then if the tenant doesn't shape up, get a new tenant as well. 

    A couple months lost rent is nothing compared to where this could go. And the cost to rehab the place will be the same no matter when you do the turn-over.

    1Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    2y

    @Michael W.

    This describes about 8-10 of my tenants. I only charge a flat $75 late fee and the same people are late every month and pay the late fee. Some people are paycheck to paycheck and can’t save up or manage their money. It’s just the way it is in this biz. I raise their leases to market rent or higher if they are a pain like this. I end up making an extra 7 or 8k/year off these late fees. It’s not that much, but they’re happy and I’m happy. This irritates my wife to death though. She thinks people should never be a day late unless it’s once or twice a year for some really good reason. lol. I tell her I’ll take her out on dates for every $75 late fee we get. We go on dates twice a week with the money. So my wife is happy and my tenants are happy. lol. They always end up paying me so it’s all good and everyone survives. Just carry an extra grand or two in your savings to cover the mortgage payment if you’re worried.

    0Reply
  • Khalid Bryan
    Real Estate Broker · Fort Lauderdale, FL · Member since 2018 · 196 posts · 191 votes
    2y

    @Michael W. I’m not an attorney but I learned in a class that unless it’s a full payment not to accept the payment. You have to accept it meaning stop allowing online payments of partial amounts and no direct to bank deposits as there’s no way to deny the partial payment.

    I’ve also heard in another class I took to be firm in your late fees and 3 day notices.

    Idk why they’re not using 3 day notices for late rent. Every partial payment you take it and issue a new 3 day notice. . After it expires no partial payments the full balance is due or you must proceed to evict.

    But I’m no lawyer. I think you should contact an eviction attorney about this matter.

    Because I am not a lawyer. Nor am I a paralegal

    None of this is legal advice or a legal opinion. ☝🏾😌

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free