Tenant has warned me that rent will be late this month, how should I manage this?
Member since 2021 · 2 posts · 3 votes
Tenant has warned me that rent will be late this month, how should I manage this?
Most Popular Reply
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
10moI follow the lease agreement (rent due on the 1st, late on the 6th, eviction filing on the 10th).
Separately, I suggest building up more reserves.
25 Replies
- Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 606 votes10mo
Kyle, given their solid payment history, it is reasonable to give a little grace but you still need to protect yourself. Start by asking why the rent will be late and when it will be paid. Keep in mind that some tenants delay rent in December to buy Christmas gifts which is not a valid reason for late payment.
Regardless of their explanation, Colorado allows you to send a 10 day Demand for Payment as soon as rent is late. Even if you choose to offer a short extension, sending the notice documents the delinquency and preserves your legal options.
Get a firm payment date in writing. If they haven’t paid by mid December, send the 10 day notice right away and if January’s rent is late as well, proceed with eviction promptly. Acting early prevents the situation from escalating.
- 10moJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
Quote from @Kyle Gatton:
My wife and I have owned a rental property for just under 5 years now without many issues except for small repairs. Our current tenants have had no issues for the past year since moving in, but just informed us that they will be late on rent this month (December 2025). Their current lease runs through the end of June 2026. There will be no issues from a cash-flow perspective for at least a month on our end, but I am now concerned about them being unable to pay at some point in December, and potentially falling behind in January too. I am willing to provide them some leeway but also don't want them to decide they can just stop paying rent or fall multiple months behind. I'm not running a charity here and the mortgage on the rental needs to be paid by my wife and I monthly, which we won't be able to sustain for multiple months without their rental payments. If we get past mid-December without a payment, do I need to send some kind of warning? Should I consider moving forward with eviction, etc? What do I need to do here in Colorado to protect myself initially, and then to make sure I can get them out in a reasonable and timely manner if they do fall further behind in January?
Hey @Kyle Gatton, welcome to the BP Forum! What does your lease say about late payments?
- 10moGreg WeikBusiness MemberProperty Manager · Denver, CO · Member since 2020 · 263 posts · 327 votes
@Kyle Gatton
Property Management is increasingly an endeavor steeped in the law. You don't have to be a lawyer, but to be a successful DIY landlord, you need to know a lot of laws, and they are constantly changing.
In your case, there are a lot of details that need to be known, such as:
-Do you have the mandatory 7-day grace period before rent is late, outlined in your lease?
-Do you know the process to properly prepare and properly serve a 10 Day Demand? If it's incorrect or served incorrectly, any attempt at eviction will be dismissed. The notice must be physically delivered to an adult at the property and if you cannot reach an adult, you need to make two separate attempts on two separate days. Your notice needs to have the same cure date, so you need to likely make it a 13 Day Demand.
-Do you have an attorney if you need to file an eviction?
-Do you have the mandatory C.A.R.E.S. Affidavit filled out and ready to go? Do you have the Gov't assistance form ready to provide to the tenant to confirm if any of their income is Gov't assisted?
Deliver the 10 Day the MOMENT rent is late. If you don't have to file, you are at least ready to file.
Real Estate Solutions4.4387 Reviews - Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes10mo
First, ask how "late" they will be.
- MD/DC · Member since 2024 · 1k+ posts · 1k+ votes10mo
Quote from @Eric Gerakos:
First, ask how "late" they will be.
-Second breathe. They have been a good tenant so at this point it is a bit premature to suspect they think you are “running a charity.”
-Third set up a cushion so in the event a tenant situation does go bad or a significant repair is required you are able to cover expenses.
- 10moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
@Kyle Gatton are you running a business or a hobby?
Guessing you are going to answer, "business".
What do you think happens if you call your car loan or mortgage company?
Do they delay all the warning letters and legal notices?
NO!
So, follow their lead.
Thank the tenant for communicating with you, but gently warn them you will have to send whatever eviction notice Colorado law allows. You can also carefully (you don't want to give them info they can legally use against you) let them know that if they continue to communicate & follow through on their payment commitments, the eviction process may not have to go to the next step.
If they are making partial payments, perhaps give them a few days leeway, but be cautious to not let them get further behind.
If you don't have an eviction attorney, find one fast just in case you have to proceed!
Logical Property Management4.9458 Reviews - 10moEric DeNardoPro MemberReal Estate Agent · Denver · Member since 2020 · 364 posts · 151 votes
@Kyle Gatton, Like what most people have said already here, I suggest gathering more information from your tenant on their situation and if they can give a timeline when they can pay for rent and if they foresee any issues with paying on time for January.
Set up a plan for them to pay rent and get on track. If they can't, then you can pursue the eviction process, or they may agree to move out. Eviction process can be tough, so I'd work with them as best as you can to get rent, or have them move out.
Happy to introduce you to an attorney to help give legal advice if that's helpful.
- Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes10mo
I follow the lease agreement (rent due on the 1st, late on the 6th, eviction filing on the 10th).
Separately, I suggest building up more reserves.
- 10moAdam BartomeoBusiness MemberReal Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
You should start with a conversation with the tenant to get the specific details of when they are going to be able to pay and for you to set clear guidelines of what is acceptable, timelines, and ramifications. When our tenants tell us that they are going to be late we let them know that we are going to post a 3-day notice like we always do because we have to protect ourselves and our owners. We further explain that we are still willing to work with them as long as the agreed upon guidelines are met.
Bartomeo Property Management4.7150 Reviews - 10moTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
If this is the first time it happened, thank them for letting you know and ask them when it will be paid and if they are in a position to pay part of it now. If it is a few days, I wouldn't worry. Could be lots of reasons for it. I had a tenant once whose employer messed up their paycheck, so they were 2 days late. Communication is so important. In some places, they have a few days grace (eg 3-5) to allow checks to arrive via the mail.
- 10moDan H.Pro MemberInvestor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
Be thankful they let you know. If a tenant lets us know, we are more forgiving than if they ghost us and are late with their rent. My wife is forgiving enough that she may waive the late fee for the first offense. I am not a fan of waiving the late fee, ever. I want paying the rent to be a top priority of every one of our tenants.
Determine if this is an exception or if they are likely to have an on going issue paying the rent. If they cannot pay the rent going forward, the lease duration means squat. You likely are better served having a discussion with the tenant about a lower rent being best for everyone. Bonus if you have a lower priced unit available for a great tenant that requires a bit lower rent.
If this is an exceptional event and they can pay the rent going forward, I would give them a little time to get the rent and keep a good tenant. I would charge the late fees per the lease to ensure they prioritize paying the rent on time.
- 10moStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
Real estate, especially property management, is a people business where good communication skills are required. If this tenant has been with you for a year with no prior issues and is communicating with you, the first step should have been a direct conversation to understand their exact situation. You are in a far better position to make the right judgment call than anyone on BiggerPockets because you know their job stability, their communication habits, their occupancy history, and whether their explanation is supported by reliable income.
If a tenant is going to be late, communicates, provides a clear reason, gives a firm date they will be caught up, and has a solid track record, immediately serving a notice before hearing them out can come across as unnecessarily aggressive. It risks harming an otherwise stable relationship. Being firm when needed is part of the job, but experienced operators know when common sense and basic human understanding lead to better long-term outcomes.
As a side note, Mike hit on your reserves. They aren't sufficient to operate this property.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes10mo
We always apply a double strategy: we deliver a 5 Day Notice To Pay Or Vacate after the 6th. And at the same time we seek communication and show empathy, ideally work out a plan to get back on track. January is always a month with higher amounts of late rents.
The 5 Day Notice is important, because you are competing with outher creditors. But most of the time we are able to get them back on track and they are grateful that we showed some elasticity and understanding.
However, if you agree to payment on the 15th and that does not happen, you can't agree to another extension - at that point you have to follow through, otherwise you have just demonstrated that you are a pushover and you will be taken advantage of.
You can also go to your favorite AI, upload your lease, describe the situation and ask to consider Colorado landlord-tenant law before asking your question. It will draft also communication for you. What you get is pretty good (most of the time).
- 10moJosh C.Pro MemberProperty Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
Lots of calloused property managers responses here. My self included. We would sent out a 10 day on the 7th. Years of dealing with lying ruthless people has made us this way, mostly in the low income space.
However, you have 5 rentals. You probably really know them and they are likely nicer properties (indicated by the fact you have had little problems in 5 years) so use your judgement, and maybe give them a til they said they would be late if a couple a of weeks if you feel they are honest. 12 months of good payment history isn’t nothing. They will likely treat you well if you treat them well. Nothing fires up a tenant like legal notices, especially hirer income people who have never got one in their lives.
Again this is something only a smaller landlord can do and decide. Drew, Greg, and myself wouldn’t give any leeway because we been lied to so much plus all the fair housing requires us to treat everyone the same. But if I were you and they told you so early I might wait or at least explain to them this notice is just a formality.
Also, you really need more cash reserves. One tenant being a little late is like a light fog. Real storms do and can come and you should be able to handle those.
- MD/DC · Member since 2024 · 1k+ posts · 1k+ votes10mo
Quote from @Josh C.:
Lots of calloused property managers responses here. My self included. We would sent out a 10 day on the 7th. Years of dealing with lying ruthless people has made us this way, mostly in the low income space.
However, you have 5 rentals. You probably really know them and they are likely nicer properties (indicated by the fact you have had little problems in 5 years) so use your judgement, and maybe give them a til they said they would be late if a couple a of weeks if you feel they are honest. 12 months of good payment history isn’t nothing. They will likely treat you well if you treat them well. Nothing fires up a tenant like legal notices, especially hirer income people who have never got one in their lives.
Again this is something only a smaller landlord can do and decide. Drew, Greg, and myself wouldn’t give any leeway because we been lied to so much plus all the fair housing requires us to treat everyone the same. But if I were you and they told you so early I might wait or at least explain to them this notice is just a formality.
Also, you really need more cash reserves. One tenant being a little late is like a light fog. Real storms do and can come and you should be able to handle those.
Excellent points as my lens is dealing with mostly class A neighborhoods and I wouldn't even consider being too worried or nasty about a tenant telling me in advance that rent was going to be late. In fact I have waived late fees on occasion also. And @Drew Sygit that doesn't necessarily make it a hobby just a decent human who is appreciative of tenants who have paid me thousands of dollars and taken good care of my properties. ;)
- 10moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votesHmmm, seems you didn't read the part, "Thank the tenant for communicating with you, but gently warn them you will have to send whatever eviction notice Colorado law allows. You can also carefully (you don't want to give them info they can legally use against you) let them know that if they continue to communicate & follow through on their payment commitments, the eviction process may not have to go to the next step."
Quote from @Jules Aton:
Quote from @Josh C.:
Lots of calloused property managers responses here. My self included. We would sent out a 10 day on the 7th. Years of dealing with lying ruthless people has made us this way, mostly in the low income space.
However, you have 5 rentals. You probably really know them and they are likely nicer properties (indicated by the fact you have had little problems in 5 years) so use your judgement, and maybe give them a til they said they would be late if a couple a of weeks if you feel they are honest. 12 months of good payment history isn’t nothing. They will likely treat you well if you treat them well. Nothing fires up a tenant like legal notices, especially hirer income people who have never got one in their lives.
Again this is something only a smaller landlord can do and decide. Drew, Greg, and myself wouldn’t give any leeway because we been lied to so much plus all the fair housing requires us to treat everyone the same. But if I were you and they told you so early I might wait or at least explain to them this notice is just a formality.
Also, you really need more cash reserves. One tenant being a little late is like a light fog. Real storms do and can come and you should be able to handle those.
Excellent points as my lens is dealing with mostly class A neighborhoods and I wouldn't even consider being too worried or nasty about a tenant telling me in advance that rent was going to be late. In fact I have waived late fees on occasion also. And @Drew Sygit that doesn't necessarily make it a hobby just a decent human who is appreciative of tenants who have paid me thousands of dollars and taken good care of my properties. ;)
How does that NOT make me a decent human?
Why would an honest tenant respond negatively to getting an Eviction Notice when rent isn't paid on time - when it's politely explained to them?Logical Property Management4.9458 Reviews
- Member since 2025 · 45 posts · 47 votes10mo
I had this scenario a while back. Tenant said they were going to be late with rent.
Had the "conversation" with them. Turns out he was in a job change situation (left one for a better one). New job would take a couple of weeks to get paycheck auto deposit set up.
We set up a partial payment plan (weekly with a catch up at the next month).
He agreed and performed to what we set up. I waived the late fees (probably should not have). He is still my tenant (probably 5-6 years since it happened). He has never missed a payment since, and gives my wife and I a gift basket each Christmas ever since.
I was probably fortunate, but I believe in treating my tenants like extended family, and all of them return the feelings. 14 years, 17 properties, ZERO evictions, ZERO missed payments.
- 10moJohn MorganPro MemberRental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
I have at least 10-15 tenants late each month. I carry enough in savings to cover the mortgages. It’s annoying but I collect around 8k/year in late fees so that makes up for it. Most of my tenants are living their lives paycheck to paycheck so they don’t have any emergency savings. I’m pretty flexible and they appreciate it. Come tax time, everyone is on time though. lol
- 10moTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Quote from @John Morgan:
I have at least 10-15 tenants late each month. I carry enough in savings to cover the mortgages. It’s annoying but I collect around 8k/year in late fees so that makes up for it. Most of my tenants are living their lives paycheck to paycheck so they don’t have any emergency savings. I’m pretty flexible and they appreciate it. Come tax time, everyone is on time though. lol
How many rentals do you have for that many to constantly be late (assuming it is usually the same ones)?
- 10moTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
accidentally posted twice.
- 10moJohn MorganPro MemberRental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes31 rentals. They all end up paying up so it’s all good. But I’ve got a couple that are over 6 weeks late right now. One guy is 2 months behind. Another one was 3 months behind but just got all paid up last week. I’ve had these people for a while so it’s not a big deal. I’ve found charging them a $75 late fee is cheaper than kicking them out and having a vacancy. Vacancies crush profits so I try and avoid those and work with my tenants.
Quote from @Theresa Harris:
Quote from @John Morgan:
I have at least 10-15 tenants late each month. I carry enough in savings to cover the mortgages. It’s annoying but I collect around 8k/year in late fees so that makes up for it. Most of my tenants are living their lives paycheck to paycheck so they don’t have any emergency savings. I’m pretty flexible and they appreciate it. Come tax time, everyone is on time though. lol
How many rentals do you have for that many to constantly be late (assuming it is usually the same ones)?
- 10moPatrick O'SullivanBusiness MemberProperty Manager · Phoenix, AZ · Member since 2024 · 534 posts · 203 votes
@Kyle Gatton, since they reached out proactively and have a solid track record, it makes sense to approach this with a mix of communication and structure. Start by asking for a clear explanation and a firm date when the full payment will be made. Getting that in writing helps avoid misunderstandings and lets you gauge whether this is a one-time hiccup or a sign of ongoing trouble.
At the same time, follow whatever process your lease and Colorado law require once the grace period ends. Serving the required notice does not have to be adversarial. It simply protects your position in case things do escalate and also signals that late payments need to be taken seriously.
If they follow through on the date you agree to and stay communicative, you can usually get things back on track without further steps. If they miss that agreed-upon date or problems continue into January, then you will be glad you already started the formal process and can move forward without delay.
Overall, stay firm on expectations but keep the door open for a reasonable solution as long as they are being responsible and transparent.
get MULTIfamily Property Management4.7220 Reviews - Member since 2022 · 1k+ posts · 1k+ votes10mo
How should you manage this? Really? Professionally, of course. Since you have a dialogue going you can tell them you appreciate knowing, but you will have to follow the terms of the lease. You might add that on day X it goes to an attorney to handle notices properly, which will end up costing them. This should be in your terms. Strictly procedure. Rent is first, always.
- Member since 2022 · 66 posts · 68 votes10mo
I have 14 units and several tenants like to pay late. Usually it's a day or two. I recently added a late fee clause in my lease. $50 after 5 days. Everyone pays within the 5 days now! I'm kind and understanding, but people lie and string me along so I get jaded by this behavior and am forced to enforce penalties to protect myself.
I will issue a 30 day notice to quit once rent is 30 days late. It works for me; either tenants miraculously find the money to pay or they move out. Either is fine with me. I've never had a problem filling a vacancy. I like going in and rehabbing the unit and renting it out for a higher rent.
- 2moRachid AbadliBusiness MemberInvestor · Sacramento, CA · Member since 2024 · 129 posts · 36 votes
The fact that they communicated proactively is actually a good sign. Most problem tenants go silent.
Here's how I'd handle it:
- Respond in writing (text or email, not just a phone call). Acknowledge their message, confirm the late fee policy in the lease, and ask for a specific payment date.
- Don't waive the late fee. This is the mistake I see most often. Once you waive it once, you've created a precedent. If you're ever in court, consistency matters.
- Don't serve the 3-day notice immediately if they've given you a realistic payment date within a week or two. But if that date passes without payment, serve it right away. No second chances.
- Document everything. Save screenshots of their message, your response, the payment date, and the amount received. If this becomes a pattern, you'll be glad you have the paper trail.
My rule of thumb:
- One late payment with communication = grace (but still charge the late fee).
- Two late payments within six months = serious conversation.
- Three = start building the documentation for non-renewal or further legal action.
LeaseBase.ai
Join the conversationCreate a free account to reply, vote on answers and follow this thread.