Late on rent but hasn't moved in yet. How would you handle this situation?

Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes

I signed a new tenant that was supposed to move in August 28th. Deposit was paid and lease signed with rent supposed to be paid on day of move in.

A week before move in I get the text that they have been in a car accident and can't move in on the 28th. They are injured and have medical bills etc.

My lease states $50 late fee after 3 days late on rent. Normally if anyone is anymore than 5 days late I am starting the eviction process.

Now I am in the weird position where they haven't paid the rent but also haven't moved in. Their next paycheck is Sept 11th and said they can pay all the fees then but that is 2 weeks after the start of the lease.

How would you handle this? Should I continue with this lease? How do you end the lease on someone that hasn't even moved in yet? Is there anyway I can charge a bigger late fee because of the longer payment delay?

Thanks!

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Marc Winter

Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes

1mo

"Stuff" happens in this life--the unexpected is to be expected. However, unless you are running a charity instead of a rental business, I'd stick to your lease.

Was the first month's rent paid? If not, why not? Make sure your policies about move-in, what's due and when, how to pay, are crystal clear; ff it's not clear, understood by both parties, and AGREED to, you're asking for problems.

How much of a deposit was given? If full month, and as @Richard F. said, 'in good funds', just follow your lease. If they're late, charge your late fee. If they're past due per your lease, file the proper paperwork to protect your legal calendar.

Of course we can still be kind, understanding, and professional--but let the tenant (client) know that you understand their situation and empathize, however, you must protect yourself and your property.

It's a business. Run it like one.

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Nathan FisherBusiness Member
Property Manager · Cleveland, OH · Member since 2020 · 312 posts · 265 votes
1mo
lol. You're in for a wild ride. Guaranteed this person will never pay a penny.

Don't let them move in without certified funds in full. Politely let them know its standard policy and that you'll prorate their next month's rent of the difference.
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- Joseph Weisenbloom
  OP
  Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes
  1mo
  @Nathan Fisher @Richard F.
  Yes I have received the deposit it is in my account. They do not have keys. I provide keys at move in after receiving rent payment. They are moving across country to my house so they are not in the area currently.
  My quandry is that I have a contract with this person so I cant just disregard them and move on. They have been communicative and sent me dashcam of accident, police report and pictures.
  However in any normal circumstances
  If someone was 2 weeks late on rent I would start eviction but since they have not moved in Im a bit perplexed if I should try and end the contract or work with them? How do you end a contract with a person that hasnt moved in?
  0 Reply
Richard F.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
1mo
Was the deposit paid in Good Funds...has the payment actually cleared yet? Do they have keys, and if so, why? There should be no access prior to full payment in good funds.
If you have a good deposit, and they have keys, just issue your standard late notice and follow through per local law. If you do not have good funds, or they have been given access, you still must just follow the law. You cannot force someone to physically move in, OR move out, on your schedule once the signatures are complete.
Does your documentation include "emergency contacts" ? Touch base with them to investigate if tenant not being responsive.
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Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
1mo
"Stuff" happens in this life--the unexpected is to be expected. However, unless you are running a charity instead of a rental business, I'd stick to your lease.
Was the first month's rent paid? If not, why not? Make sure your policies about move-in, what's due and when, how to pay, are crystal clear; ff it's not clear, understood by both parties, and AGREED to, you're asking for problems.
How much of a deposit was given? If full month, and as @Richard F. said, 'in good funds', just follow your lease. If they're late, charge your late fee. If they're past due per your lease, file the proper paperwork to protect your legal calendar.
Of course we can still be kind, understanding, and professional--but let the tenant (client) know that you understand their situation and empathize, however, you must protect yourself and your property.
It's a business. Run it like one.
2 Reply
- Joseph Weisenbloom
  OP
  Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes
  1mo
  @Marc Winter Yea going to stick to the lease. Its a fine line for sure. I also need to talk to an attorney to see what is possible in my area. Thank you for your response.
  0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1mo
How well did you qualify them?
Can they provide proof of the accident?
Life does happen, but this doesn't sound good.
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- Joseph Weisenbloom
  OP
  Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes
  1mo
  @Drew Sygit Yes they provided proof of accident. They passed my qualifications. Yea its definitly not good I would agree. I am trying to figure out the best path forward from this position. Thank you for responding.
  0 Reply
- Drew SygitBusiness Member
  Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
  1mo
  Give them a deadline to MoveIn or terminate.
  This is one of the reasons we collect a nonrefundable Holding Fee and have them sign a Holding Fee Agreement that lists a MoveIn Deadline with all funds paid. Only refund options are if we fail to pass 2nd S8 Inspection, we find another acceptable tenant with same MoveIn Date or we can't get property RentReady in time.
  ALWAYS think ahead and plan for the worse!
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Jim Johnson
Real Estate Agent · Memphis · Member since 2026 · 583 posts · 345 votes
1mo
I’d be cautious about starting a tenancy that’s already two weeks behind, even with a legitimate reason for the delay.
- Continue the lease? I’d decide based on whether I’m comfortable accepting that payment arrangement, not just the reason they gave for being late.
- End the lease? Since it’s already signed, I wouldn’t assume that not taking possession automatically lets me cancel it. I’d follow the lease and confirm the proper Texas process before terminating for nonpayment.
- Increase the late fee? I wouldn’t add a larger fee that isn’t already provided for in the lease.
The accident deserves some understanding, but I’d still handle the rent and lease consistently. Starting out two weeks behind can become a much bigger problem if the promised payment on the 11th doesn’t happen.
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- Joseph Weisenbloom
  OP
  Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes
  1mo
  @Jim Johnson Very good points. Yes I agree it will depend on what is possible based on my what is legal in my area. Either direction will result in challenges. Keeping lease may result in future management problems. Ending the lease may not be possible legally. I would love to charge a higher fee for the length of time being late but again that is most likely not legal because its not in the lease.
  0 Reply
Nikkita Torres
Specialist · Central Texas · Member since 2026 · 11 posts · 1 vote
1mo
I saw in another comment that the tenant provided proof of the accident. That is incredibly unfortunate for both of you. You both need each other right now. You already have a signed lease, he paid deposit. You need a tenant and he needs a place to live. You should follow your lease and charge the late fees as they are stated or prorate the rent, or workout some kind of payment plan to receive money until he gets his next check. He may not be able to pay all of it but maybe he can pay some in the meantime.
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- Joseph Weisenbloom
  OP
  Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes
  1mo
  @Nikkita Torres Thank you for reading everything and making your analysis. Yea I am learning that this is more of a legal question that will have an answer depending on state law. Yea its unfortunate but I agree I need to set a date for payment to remedy the situation.
  0 Reply
Shiloh LundahlPro Member
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
1mo
@Joseph Weisenbloom I would encourage you not to do any payment plan unless your lease states it. Just follow through with the lat Rees. Does your lease also explain the eviction process and that the tenant will need to pay any fees associated with the eviction process? So on day 5 if the rent hasn't been paid you send a letter to the house (there is a charge for that). After 5 days you file with the court. There is a charge for that. If they don't pay for the rent, plus late fees, plus charges associated with the eviction filings, then I wouldn't hand them the keys. I would also take a time stamped video of the condition of the home in case they are not good to the home if they do move in. You will have evidence that can justify not returning their deposit.

Another option that you may want to check with legal on is if you return their deposit money can you cancel the contract unilaterally? Because at that point there is no consideration for the contract.
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Chad Hale
Property Manager / Investor · San Jose, CA · Member since 2013 · 780 posts · 301 votes
1mo
We always collect security deposit and first month's rent at time of lease signing. If the move in date is within 10 days, certified funds via cashiers check or money order is required or wire transfer.
You'll have to check with your attorney / local laws regarding your options at this point.
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Sean Schwartz
Anoka, MN · Member since 2026 · 2 posts · 2 votes
1mo
I know it’s after the fact, but that’s why I always take one to three months rent upfront man. It’s hard for some people but people that it’s too hard for probably aren’t the ones who want to rent to even if they pass all the screens you don’t want to rent to someone who is moving into your place to get out of another place because of financial trouble or something similar. Honestly, your best bet is to remove the feelings and sympathy in this case and start the eviction process. Keep their deposit separate cancel the contract they don’t pay and then refund them. Their deposit move onto the next renter or keep it vacant if they can’t abide by the contract and pay you regardless of being in an accident or not then the contract is canceled or modified
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- Richard F.
  Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
  1mo
  Most local laws limit what you can charge as Security Deposit, AND the total amount you can "collect" prior, or at, move in.
  The fact you are essentially using that as key to your screening process is a very poor choice.
  Just to revisit the OP, these people were moving across the country, and had an accident en route. They have communicated with OP, and had injuries. We have no indication how bad, but one must assume that some/all of their belongings are also en route. So they have no vehicle, no where to live and possibly are actually IN a hospital. OP has a full security deposit, and has not turned over keys. I would not be in a big rush to evict here. Further communication, and verification of the incident is needed, and depending on the actual health status of the person/family, maybe a little patience is sensible. Of course, we do not have any clue on what the employment or financial situation etc. may be, but if OP failed to properly screen, that is a separate issue. It is not even a week past the scheduled move in, and again, deposit was paid.
  Depending on local law, you may not be able to just "cancel" the agreement unilaterally under these circumstances.
  0 Reply
- Joseph Weisenbloom
  OP
  Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes
  1mo
  @Sean Schwartz Unfortunately 3 months rent upfront is not possible in my market. Central texas is high supply/low demand and super competitive. It took me 3 months to find a tenant and that was after multiple price cuts. Lots of competitors dont require any deposit and even those listings sit for months.
  0 Reply
Amit PatelBusiness Member
Property Manager · Bartlett, IL · Member since 2025 · 160 posts · 66 votes
1mo
Hey Joseph,

This is an awkward but fairly common situation. The lease is still a binding contract even though they have not moved in or received keys. Rent was due on the start date, so they are already in breach.

Because they never took possession, you have a bit more flexibility than a normal late rent case. The cleanest approaches are usually one of two paths. First option is to give them a short written extension with a firm new deadline (for example full rent plus the lease late fees by September 11) and a clear new move in date. Get that agreement in writing and signed or at least confirmed by email. Second option is a mutual termination where you keep the deposit to cover any lost rent or costs while you re rent, and both sides release each other from further claims.

You generally cannot charge a higher late fee than what the lease allows. Stick to the $50 after three days unless your lease has additional language that supports more.

Since they have been communicative and provided documentation of the accident, a short good faith extension is reasonable if you still want them as tenants. Just protect yourself with a clear written deadline and consequences if they miss it. If they do not pay by the new date, you can treat the lease as terminated for non payment and move forward with re renting. Keep records of every message and the formal notices. And because they dont have posetion yet, you are in a better spot having also de desposit.
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- Joseph Weisenbloom
  OP
  Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes
  1mo
  @Amit Patel A secondary agreement with Sept 11th as the deadline sounds like a good idea. Thanks!
  1 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
1mo
Are they still planning on moving or not? They would have given notice at their last place and set up the move. There may be medical bills, but are they able to move or is someone seriously hurt and unable to move because they are in hospital or something similar?
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Diana KhanPro Member
Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 555 posts · 194 votes
1mo
Quote from @Joseph Weisenbloom:
I signed a new tenant that was supposed to move in August 28th. Deposit was paid and lease signed with rent supposed to be paid on day of move in.
A week before move in I get the text that they have been in a car accident and can't move in on the 28th. They are injured and have medical bills etc.
My lease states $50 late fee after 3 days late on rent. Normally if anyone is anymore than 5 days late I am starting the eviction process.
Now I am in the weird position where they haven't paid the rent but also haven't moved in. Their next paycheck is Sept 11th and said they can pay all the fees then but that is 2 weeks after the start of the lease.
How would you handle this? Should I continue with this lease? How do you end the lease on someone that hasn't even moved in yet? Is there anyway I can charge a bigger late fee because of the longer payment delay?
Thanks!
@Joseph Weisenbloom, this is one of those situations where I would be very careful about trying to be flexible without putting everything in writing.
I’ve dealt with landlord-tenant situations where the original lease said one thing, but later texts, payment arrangements, or verbal promises made the situation much less clear.
If you decide to give them until September 11, I would not just leave it as, “Okay, pay me then.” I would have a local Texas attorney tell you how to document the new payment date, move-in date, amount due, and what happens if they do not pay.
I would also be careful about adding a bigger late fee just because the delay is longer. If it is not already allowed under the lease and Texas law, I would not create a new charge on my own.
You can absolutely have compassion for what happened to them and still protect yourself. In my experience, the safest way to do both is to make any exception very clear and very well documented.
I’m licensed in Maryland, so I can’t advise you on the Texas process, but I agree with your plan to speak with a Texas landlord-tenant attorney before deciding which way to go.
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- Joseph Weisenbloom
  OP
  Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes
  1mo
  @Diana Khan Yea it is sounding like this is a better question suited to a local attorney. I appreciate the advice!
  0 Reply
Ryan SpathBusiness Member
Real Estate Agent · Boise, ID · Member since 2017 · 571 posts · 378 votes
1mo
I’d probably handle this by sticking to whatever is already written in the lease rather than trying to create a larger late fee after the fact. In my leases, rent is considered late after the 3rd, there is an initial late fee and then an additional daily late fee until the rent is paid. I also have language that allows me to serve the appropriate notice if the default isn’t corrected, as well as a separate early termination provision if the tenant wants out of the lease. Obviously the car accident and injuries are unfortunate, and you can choose to give someone grace, but being unable to pay the very first month’s rent would make me pretty concerned about their ability to make the payments going forward. I personally wouldn’t add a bigger late fee that wasn’t already agreed to in the signed lease. I’d either follow the lease and the proper notice process or, if I felt it was better for everyone, see if we could mutually agree in writing to terminate the lease and get the property back on the market. Either way, make sure you check and follow the landlord-tenant laws in your state and local area because notice requirements, late fees, deposits, and terminating a lease before someone takes possession can vary depending on where the property is located. I may also loop in my attorney on this just to make sure I am doing it the right way...
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Adam TafelBusiness Member
Real Estate Agent · St. Paul, MN · Member since 2017 · 592 posts · 402 votes
1mo
Good question, you need to consult with an attorney in your state. My guess is that you cannot simply cancel the lease after it’s been signed, but since they haven’t moved in perhaps your state has provisions for this in a statute. Good luck.
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Jon K.
Rental Property Investor · Perry Hall, MD · Member since 2016 · 588 posts · 600 votes
1mo
It sounds like you have a vacancy rate challenge in the market you're in. Food for thought: not having a tenant is way better than having a bad tenant. Ask me how I know. I have no clue what your options are in this case because I don't know the rules of your local market or what your lease says but if you hadn't already signed a lease with this person and they had just applied, saying or even proving that they had just been in a car accident resulting in medical bills which affects their ability to pay rent before even moving in would they pass your screening? I'm some random on the internet so take it with a grain of salt.
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Benjamin AakerPro Member
Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
1mo
This is one of those times where you need to consider the circumstances. If the party says the can pay on Sep 11, it seems like the kind thing to do to give them grace until then. Assuming the story is true (you received proof), wouldn't you want to be treated that way too. Let them know that if you don't have the rent on the 11th you will need to move on. Refund the remainder of the deposit prorated to the 11th and find a new tenant. Otherwise, you've done a good thing, set boundaries, and have a tenant in place.
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Alan T.Pro Member
Rental Property Investor · Member since 2019 · 16 posts · 3 votes
1mo
Review your lease, ensure you know what you can insist on. I'd be flexible-but-strict, you need to prepare for the 40% case that this goes south, while recognizing that this person might just need the time.
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