Not Required to Accept Second Late Payment?

Question

My tenants have been late on rent more than a half dozen times. Late last year, they were late past the 5-day grace period, so I sent a Notice To Quit. They finally paid a couple of days later. Per what I read in the Landlord/Tenant Handbook for Georgia, the Tenants have 7 days to pay after receiving a NTQ, but quote: "the landlord is only required to accept a late payment once in a 12-month period."

My Tenants are currently past the grace period again and I have just sent my second NTQ today. If I understand this correctly, I don't have to accept any form of late payment and can continue with the eviction process? Does anyone have experience with this?

Thanks in advance!

Nathan Gesner · Answer

I disagree with the others. I have experience with hundreds of rentals, thousands of tenants. If a tenant is regularly late on payments, there is a very high probability that they will eventually stop paying or violate the lease in other ways that cost you far more than the late fees you see as "extra income."

If a tenant pays late more than twice in one year, I won't renew their lease. If they bounce a payment (check or ACH) more than once, I will only accept cash, money order, or cashier's check. If I have to serve a 3-day Pay or Quit more than once, I will get rid of them.

When you let little violations go, they eventually grow emboldened and hit you with large violations.

Jason Lohse · Answer

I hear you. Having a paying Tenant is great and shouldn't be dismissed lightly. That said, the expenses with this Tenant has made it not worth the cost and headache. There have been several high-cost damage issues and one where they are at fault and confessed to, resulting in thousands of dollars, that have put me in the hole to the point I won't make anything off of this year's lease.

We live in Colorado and it's made it difficult to manage, even with paid professional services, so we are selling as soon as they can vacate. The lease goes through the end of June, but it looks like they are trying to get a month free. So, we are not waiting and want to fast-track the process, cash out equity, and seek other opportunities.

Jason Lohse · Answer

Thank you Jeremy! Great insight and points of action. The rental is in GA and I live in CO. GA timeline is a lot shorter thank CA for sure!

I've actually used some of what you proposed here with our tenants the last couple of days. They say will pay for this past month, but plan to leave May 1st. I doubt they will pay, but at least it's an early exist to get the house on the market quickly.

Thanks so much for the perspective and advice!

Wesley W. · Answer

I'm glad I'm not the only one who thought this.  "Eventually paying rent including the late fee" does not a good tenant make.  Coming from a landlord, "at least they are paying" I think, reinforces a negative stereotype in our industry.

If they do not have respect for this part of your signed contract, they will also flout other parts - whether or not you are aware of it.

I would press them for a notice to vacate in writing for May 1, and if they hesitate at all, I would make sure you issue you own notice to terminate/non-renewal in plenty of time to be compliant with your jusidiction.

I think you know this already, but I would not have let them go this long without paying for damages.  In my lease, the invoiced damage is due as additional rent on the very next month.  So, they would have a balance due and owing if they did not pay.

Let's hope they get out of there without too much more of a loss for you.  We'll see.

Kevin Sobilo · Answer

@Jason Lohse, would you really prefer to make LESS money by evicting a paying tenant?

It sounds like you have a paying tenant where you occasionally make a little extra on with a late fee. If you evict, you'll bear the costs of the eviction, plus the turnover/vacancy and on average have the same situation as it sounds like you have a typical tenant in terms of payment. So, assuming this tenant is already paying market rent you will never recover those additional costs and make less money.

I'm curious what your motivation is to evict? I can't imagine it really has to do with this EXTREMELY minor payment issue.

Jason Lohse · Answer

Thanks Kevin. Thanks for sharing your wording in your contract. Very insightful and helpful.

You are correct: they didn't pay for the damages. We've reminded them the last 3 months and they still have not paid.

So, knowing we want to sell the house and cash out equity for other things (maybe a different property closer to us, we'll see), not having the damages paid, late rent, and with only one month left on the lease, we see the writing on the wall. They are doing everything consistent with trying to slow walk the last month lease, so we just need to end it.

Thus, my question to fast track this with wanting to understand the wording in the Handbook for clarity. Thanks again!

Jason Lohse · Answer

Thanks again!

Wesley W. · Answer

I wouldn't think so, but I would make it a point to be well versed in your local laws.  A lot of these things should be spelled out in your lease.

25. WAIVERS: Our acceptance of Rent after knowledge of a breach of this Lease by you is not a waiver of our rights nor an election not to proceed under the provisions of this Lease or the law.  Our rights and remedies under this Lease are cumulative; the use of one or more shall not exclude or waive our right to other remedies...

I would also get to know a reputable landlord/tenant attorney in your market.  They are worth their weight in gold when the rubber hits the road.

Jason Lohse · Answer

Wesley, do you know if I would forfeit the right to pursue getting the past due rent if I get a Notice to Vacate from them?

Jason Lohse · Answer

Wesley, great insight and advice. We did ask for the damages right away, but it's been two months. I agree with you, we held out too long.

Your advice on getting a Notice to Vacate to them with their agreement to be out by May 1st. Is their email to me stating that they will be leaving May 1st able to be upheld legally? Or do I need a more officially worded Notice to Vacate?

Either way, I will be checking with the county on Monday to ensure I am compliant. So thankful for your help!

Not Required to Accept Second Late Payment?

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