How Do You Handle Tenants Who Pay Late: Strict / Flexible?

Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes

Every landlord eventually runs into the issue of late rent payments. I’m wondering how other investors/landlords handle this. Do you stick to a firm process (late fees, notice to cure, etc.), or do you take it case by case depending on the tenant’s situation? I’d love to hear what’s worked best for you, especially in balancing professionalism with tenant relationships.

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David PeschioBusiness Member

Richmond, VA · Member since 2019 · 358 posts · 181 votes

We have a strict policy regarding late payments to ensure consistent adherence to lease terms. Bending this policy can, in our experience, lead to a problematic cycle.
However, for long-standing tenants with a consistent payment history, we are willing to make a one-time exception. Our leases are structured to include a policy that allows for a single waiver of a late fee.

[email protected]804-909-1929

PMI Richmond4.4299 Reviews

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Jules Aton
MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
1y
Great question. I've never had more than 3 rentals at one time so easy to keep track and in excellent neighborhoods which I'm sure reduces financial issues. I am flexible unless the tenant gives me a reason not to be which so far hasn't happened. I had one long term tenant who struggled to pay rent. She wanted to have her child in the excellent school district and often paid late but always paid so I let it ride.
1 Reply
- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  1y
  Quote from @Jules Aton:
  
  Great question. I've never had more than 3 rentals at one time so easy to keep track and in excellent neighborhoods which I'm sure reduces financial issues. I am flexible unless the tenant gives me a reason not to be which so far hasn't happened. I had one long term tenant who struggled to pay rent. She wanted to have her child in the excellent school district and often paid late but always paid so I let it ride.
  Thanks for sharing your experience! I agree, having rentals in strong neighborhoods definitely helps minimize financial issues. I like your perspective on being flexible with tenants as long as they’re making the effort and communicating. It’s encouraging to hear how you handled your long-term tenant who sometimes paid late but always caught up. That balance between understanding and holding tenants accountable is something I’m working to fine tune as I grow as well.
  
  1 Reply
Wesley W.
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
1y
I'm pretty inflexible when it comes to the lease. I've learned that any deviation from the written contract creates the perception that everything's negotiable or just a "guideline".
I have, at my sole discretion, waived the late fee as a one-time courtesy to a tenant whom (a) is in good standing and has paid promptly for at least a year, (b) has informed me in advance that the rent would be late, and (c) pays up within a few days after the late fee would have kicked in.
Whenever rent is not received, I start right away with a rent demand letter and proceed with the eviction process on the first day it is permissible by statute, even if the tenant eventually pays (including collection costs). Here in NY, the eviction process is long and arduous, so getting out in front with a non-payment proceeding is one of a few ways I am still able to mitigate my losses.
That being said, I screen, screen, screen, so in 11 years I have only had one eviction on a tenant I've placed (about 30% of inherited tenants have had to be evicted) and late payments are extremely rare (1 late payment in the last 150 or so). I have mostly class C small-multi properties.
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- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  1y
  Quote from @Wesley W.:
  
  I'm pretty inflexible when it comes to the lease. I've learned that any deviation from the written contract creates the perception that everything's negotiable or just a "guideline".
  I have, at my sole discretion, waived the late fee as a one-time courtesy to a tenant whom (a) is in good standing and has paid promptly for at least a year, (b) has informed me in advance that the rent would be late, and (c) pays up within a few days after the late fee would have kicked in.
  Whenever rent is not received, I start right away with a rent demand letter and proceed with the eviction process on the first day it is permissible by statute, even if the tenant eventually pays (including collection costs). Here in NY, the eviction process is long and arduous, so getting out in front with a non-payment proceeding is one of a few ways I am still able to mitigate my losses.
  That being said, I screen, screen, screen, so in 11 years I have only had one eviction on a tenant I've placed (about 30% of inherited tenants have had to be evicted) and late payments are extremely rare (1 late payment in the last 150 or so). I have mostly class C small-multi properties.
  Thanks for sharing your process. I completely see the value in holding firm to the lease so tenants don’t start to see it as negotiable. The one-time courtesy waiver with clear conditions also sounds like a fair balance.
  
  I’m in Ohio, and our eviction process can be long too, so I understand the importance of getting out in front of nonpayment issues quickly. Like you mentioned, strong screening makes all the difference. It’s encouraging to hear how rare late payments and evictions have been for you with tenants you’ve placed compared to inherited ones. Definitely reinforces the value of solid tenant screening upfront. Thank you again.
  
  1 Reply
David PeschioBusiness Member
Richmond, VA · Member since 2019 · 358 posts · 181 votes
1y
We have a strict policy regarding late payments to ensure consistent adherence to lease terms. Bending this policy can, in our experience, lead to a problematic cycle.
However, for long-standing tenants with a consistent payment history, we are willing to make a one-time exception. Our leases are structured to include a policy that allows for a single waiver of a late fee.
[email protected]804-909-1929
PMI Richmond4.4299 Reviews
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2 Reply
- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  1y
  Quote from @David Peschio:
  
  We have a strict policy regarding late payments to ensure consistent adherence to lease terms. Bending this policy can, in our experience, lead to a problematic cycle.
  However, for long-standing tenants with a consistent payment history, we are willing to make a one-time exception. Our leases are structured to include a policy that allows for a single waiver of a late fee.
  That’s a smart approach. I like how you’ve built flexibility into your lease with the one-time late fee waiver, it sets clear expectations while still giving room for good tenants who may hit a bump in the road. I may look into adding something similar as I refine my lease agreements. Thank you David for your response.
  
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Joseph TadresPro Member
Real Estate Agent · Columbus, OH · Member since 2025 · 184 posts · 179 votes
1y
You should always have a late fee in your lease agreement. The truth is that people will run into tough situations, and sometimes, as a landlord, you have to be understanding.
1 Reply
- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  1y
  Quote from @Joseph Tadres:
  
  You should always have a late fee in your lease agreement. The truth is that people will run into tough situations, and sometimes, as a landlord, you have to be understanding.
  Absolutely agree, a late fee clause is a must in every lease. Yes, we include late fees in ours as well. Like you said, life happens and sometimes tenants run into tough situations, so there’s definitely a balance between enforcing the lease and being understanding. Thank you for responding.
  
  1 Reply
Ryan IrwinPro Member
Investor · Ankeny, IA · Member since 2022 · 158 posts · 129 votes
1y
Quote from @R. Elle Berry:

Every landlord eventually runs into the issue of late rent payments. I’m wondering how other investors/landlords handle this. Do you stick to a firm process (late fees, notice to cure, etc.), or do you take it case by case depending on the tenant’s situation? I’d love to hear what’s worked best for you, especially in balancing professionalism with tenant relationships.

One thing I would highly recommend is using software (like Rentredi) that automatically charges late fees. That way, the software becomes the 'bad guy' but also, it's consistent and automatic. Certainly I think that you need to be a human and have a communication line with your tenant (or your property manager should) versus automatically starting the eviction process on day 10. However, setting expectations at the beginning is CRITICAL and maintaining consistency is ESSENTIAL. Screening is hugely important, but won't eliminate all the instances of late rent, but if you start to bend or not follow processes/rules consistently, your can of worms just got a lot bigger.
0 Reply
- R. Elle Berry
  OP
  Real Estate Broker · Cleveland, OH · Member since 2016 · 146 posts · 110 votes
  1y
  Quote from @Ryan Irwin:
  
  Quote from @R. Elle Berry:
  
  Every landlord eventually runs into the issue of late rent payments. I’m wondering how other investors/landlords handle this. Do you stick to a firm process (late fees, notice to cure, etc.), or do you take it case by case depending on the tenant’s situation? I’d love to hear what’s worked best for you, especially in balancing professionalism with tenant relationships.
  
  One thing I would highly recommend is using software (like Rentredi) that automatically charges late fees. That way, the software becomes the 'bad guy' but also, it's consistent and automatic. Certainly I think that you need to be a human and have a communication line with your tenant (or your property manager should) versus automatically starting the eviction process on day 10. However, setting expectations at the beginning is CRITICAL and maintaining consistency is ESSENTIAL. Screening is hugely important, but won't eliminate all the instances of late rent, but if you start to bend or not follow processes/rules consistently, your can of worms just got a lot bigger.
  Hi Ryan, yes we use property management software. And I agree when you bend a little you do open a large can of worms lol. Thanks for responding.
  1 Reply
Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
1y
Quote from @R. Elle Berry:

Every landlord eventually runs into the issue of late rent payments. I’m wondering how other investors/landlords handle this. Do you stick to a firm process (late fees, notice to cure, etc.), or do you take it case by case depending on the tenant’s situation? I’d love to hear what’s worked best for you, especially in balancing professionalism with tenant relationships.

Late rent is one of those things every landlord has to deal with sooner or later, and in my experience having a clear, consistent process is really important because it sets expectations and avoids confusion. I always recommend sticking to the lease terms with late fees and notices, but also keeping open communication with tenants—sometimes life happens and if it’s a good tenant with a solid history, a little flexibility can go a long way. That said, I avoid making a habit of case-by-case exceptions because it can turn into tenants testing boundaries. In markets like Columbus, Ohio, where I invest, the landlord laws are very fair and the process is straightforward, which makes it easier to enforce policies without dragging things out like you might see in other states. It’s one of the reasons Columbus is such a great place to own rentals—you get steady demand, cash flow that hits the 1% rule, appreciation potential from all the job and population growth, and a system that actually supports landlords when issues come up. Happy to connect and answer any questions you have!

[email protected]614-300-7535
Jimmy Lieu, Red 1 Realty4.9120 Reviews
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Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
1y
I have never looked at it as strict, loose, professional, unprofessional. It's simply what it is...rent due on the 1st, late on the 6th, eviction filing on the 10th. Anything else just means there is no due date and it's up to the resident to decide based on what they tell you. Always handled with curtesy and respect. There is a lengthy period from the due date on the 1st until eviction proceedings; so, there is a lot of time to cure if the resident has a temporary hardship.
1 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
1y
Depends on the tenant. If they let me know ahead of time and it is a few days late and only happens once or twice, I work with them. If they are habitually late, add a late fee (as per your lease) and do not renew their lease.
1 Reply
Zeke ListonBusiness Member
Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
1y
Quote from @R. Elle Berry:

Every landlord eventually runs into the issue of late rent payments. I’m wondering how other investors/landlords handle this. Do you stick to a firm process (late fees, notice to cure, etc.), or do you take it case by case depending on the tenant’s situation? I’d love to hear what’s worked best for you, especially in balancing professionalism with tenant relationships.

Honestly, it depends on the tenant. If they’re usually solid and just hit a rough patch, I’ll work with them. But I always have a late fee in the lease, so expectations are clear.
[email protected]614-665-5793
Forge Real Estate Advisors535 Reviews
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Alfath AhmedBusiness Member
Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
1y
Quote from @R. Elle Berry:

Every landlord eventually runs into the issue of late rent payments. I’m wondering how other investors/landlords handle this. Do you stick to a firm process (late fees, notice to cure, etc.), or do you take it case by case depending on the tenant’s situation? I’d love to hear what’s worked best for you, especially in balancing professionalism with tenant relationships.

I give them 5 days every months to submit their rent payment. Across my 25 rental units, I have 1 to sometimes 2 tenants that will be late (maybe an extra 5-7 days sometimes). I work with them because i know it's hard.
BUT, i have a very strict criteria for leasing (credit score, income, no prior evictions, employment verification, no criminal record). So usually, they are good people. I have done 1 eviction in my 4 years of investing.
[email protected]614-802-5698
ReafCo | Ahmed Group 55 Reviews
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James McGovern
Flipper/Rehabber · Bloomfield CT · Member since 2020 · 1k+ posts · 408 votes
1y
For us using software such as door loop or turbotenant these charges are automatically applied
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
Perspective: been managing Class A-D for over 25 years, so we've learned a thing or two - often the hard way.
Our lease states:
1) Rent due on first, with 5-day Grace Period
2) Late on 6th
3) Can charge daily late fee after 10th
4) Is very specific that Grace Period can be rescinded if abused (defined in lease).
We've learned to leave NOTHING vague and define everything EXTREMELY well so tenants and judges cannot misinterpret!
How we enforce:
1) EVERYONE gets a nonpayment Eviction Notice (7-Day in Michigan), regardless of their excuse or history with us. The process is fairly automated to insure this.
- If tenant alerts us they will be late, our standard response thanks them for letting us know, but we are contractually obligated to send them a 7-Day - which they can ignore if they pay before the 7 days is up.
2) We have 6 Milestone triggers when we try to contact the tenants to offer Payment Plans & Cash-for-Keys:
- When 7 days is up, before we send to attorney for court date
- When we receive Court Date Notice from court
- When we receive Eviction Judgment after court date
- When Michigan's 10-days to pay-to-stay is up
- When we schedule bailiff
- Day before bailiff date
3) Our Payment Plans are formal, in writing and tenant MUST commit to specific Payment Dates & Amounts. We require them to submit these, we do NOT tell them what we want as we know most will just agree to anything to "buy more time".
4) We offer Cash-for-Keys option to solely gauge interest and do not offer an amount. If they are interested we engage the owner to see if/what they will approve.
5) We do try to be a LITTLE flexible. Our staff is allowed to pause the next step in the process for a maximum of 3 days - anything else requires managment & possibly owner approval. Designed so that if our staff is speaking with a tenant on a Tuesday and tenant states they can pay on Friday payday, we can flex a little.
6) We train our staff to be empathetic, but firm.
7) We have to train owners to protect them from themselves. Many want to be too nice. We update owners on every Milestone with standard messages that end with, "we will proceed unless we hear otherwise from you ASAP as long as your account has the necessary funds".
8) We rarely waive Late Fees because we require tenant to make their next 3 payments on-time before doing so - which many tenants don't do.
Remember, if YOU do not maintain control, tenants will teach you a lesson that is often painful!
[email protected]248-209-6824
Logical Property Management4.9451 Reviews
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Parris Taylor
Investor · New York, NY · Member since 2025 · 92 posts · 71 votes
1y
I’ve found late rent headaches are less about policy and more about execution. I run it like this: pay a few days early - 1% discount; Day 2 - courtesy reminder; Day 5 - late fee auto-applied; Day 10 - notice prepped. The flow runs itself, so I’m not chasing tenants or debating “case by case.” Tenants see consistency, I stay professional, and the system moves things forward until I actually need to step in.
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Adam BartomeoBusiness Member
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
11mo
We are flexible with tenant payments but strict with our policies. Meaning that our posting always happen at the same time no matter the situation, once the tenant falls behind by 1.5 months rent we start the eviction process. As long as they are making good effort to get caught up we will continue to work with them until our policies tell us its time to take further action.
[email protected]239-339-3969
Bartomeo Property Management4.7150 Reviews
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