Tenants Shorted Rent Check $75..And I DON'T Back Down...

Tenants Shorted Rent Check $75..And I DON'T Back Down...

Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes

I have new tenants in a SFR. They had repairs done without my knowledge or consent. Had I consented, I would have the repair company send me the bill. I will NOT allow tenants to have repairs done and then deduct that from the rent. I am afraid I would be setting a precedent. Next thing you know, they could have a swimming pool installed and I would be on the hook:)....so....I order repairs, I pay for repairs, and tenants are expected to mail in the full rental amount due each month.

These people shorted the check by $75. I don't know how others handle this, but I sent back their cashier check by certified mail and posted a 3 day notice to pay or vacate. 3 days later I received the cashiers check back along with an additional check to cover the shortage plus $25 for the certified letter. I regard this as "training" a tenant. I was a bit skeptical that I might end up in court but in the end this one worked out.

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Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
12y

#6 Rule of Landlording - when a tenant gives you money, never give it back.

You should have a clause in your lease pertaining to partial payments and how they do not void your ability to pursue necessary action to collect the full amount due.

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  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    12y

    Good job!

  • Rental Property Investor · Cypress, CA · Member since 2014 · 229 posts · 47 votes
    12y

    @john 

    i believe that was a wise thing to do to train, and reemphasize your standards for them to live in your properties. I would have done the same thing. 

  • Dick RosenPro Member
    Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
    12y

    Very good John, I agree 100% with what you did. And you got exactly the results needed.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @John Thedford 

      and for that reason I am the worst landlord in the world I would have just let it go.. my time is far to valuable to worry about 75.00 dollars... Only 11 more properties to sell off and then I am truly free of this landlord life.. I just hate it  with a capital H... but that's just me :)

  • Involved In Real Estate · Winston-Salem, NC · Member since 2013 · 277 posts · 188 votes
    12y

    @John Thedford Exactly what I would have done.  And added the late fee.

  • Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
    12y

    please explain the "pay or quit" notice vs. eviction for non payment of rent. are these the same thing? when someone decides not to pay, does the "pay or quit" result in a quicker procedure to remove a tenant?

  • Investor · New York City, NY · Member since 2014 · 370 posts · 85 votes
    12y

    Well done.

  • Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
    12y

    Good job @John Thedford , and right on @Ursula B. :)

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    12y

    I have seen these go to court before.

    The judge at least in my jurisdiction asks the tenant if they informed the landlord IN WRITING of the repairs needed and do they have a copy of such a document?

    99% of the time the answer is they do not have the document, or they verbally told the landlord, or they did not want to bother the landlord so they did it themselves or had Uncle Bubba do it and of course the repair bill is inflated for work done (if it was ever done... : ) to offset the rent being paid.

    Now if the tenant does give notice in writing and can prove it was delivered to landlord and the landlord refused or did not make the repair then the tenant might have a leg to stand on.

    Otherwise the judge throws out the tenants argument.

    No legal advice.

  • Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    12y

    I would have done it a bit differently.  1. Cash the original cashier's check  2. Notify the tenant of $75 rent still due with a phone call.  3. Review with the tenant the terms of the rental agreement and what I need them to do now and in the future about repairs and rent  4. If they did not pay the remaining $75 within our 5 day grace period, then I would hand or mail a late rent letter and charge our standard $50 late fee. 5. If they did not pay soon after, then I would serve the "Pay Rent or Quit" notice.  6. The legal notice comes with a $20 posting fee that would also then be due.

  • Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    12y

    #6 Rule of Landlording - when a tenant gives you money, never give it back.

    You should have a clause in your lease pertaining to partial payments and how they do not void your ability to pursue necessary action to collect the full amount due.

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    12y

    @Joel Owens 

    the tenant did not submit anything in writing.  Also, this repair was a drywall repair in the garage. The tenants are quite elderly and have nothing to do but complain complain complain and look for problems. Any repair that affects the usefulness of the property, health, safety, welfare, etc gets same day attention. I was aware of the complaints about the drywall and my tenant explained I "did not fix it fast enough". 

  • Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    12y

    @John Thedford 

    Especially in that case with those type of tenants you did the right thing! Personally I tell my tenants no! I repair not improve :)

  • Residential Landlord · Greenfield, WI · Member since 2013 · 299 posts · 126 votes
    12y

    Marcia Maynard has it right,

    exactly right.

    ...and remember Aaron's Mazrillo's rule of Landlording.

  • Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    12y
    Originally posted by @Account Closed:

    please explain the "pay or quit" notice vs. eviction for non payment of rent. are these the same thing? when someone decides not to pay, does the "pay or quit" result in a quicker procedure to remove a tenant?

    In our state, the "Pay Rent or Quit" notice is a legal notice that can result in either the tenant quickly paying the rent or quickly vacating the property. It is also the first step in the legal eviction process. If the tenant doesn't respond to this notice, then you either proceed with  the eviction process or don't. If you don't, the tenant knows you lack follow-through. If you do proceed, it will cost you more time and money.  We try to use other means to bring tenants into compliance with the terms of the rental agreement before resorting to legal notices. We find it makes for a better landlord-tenant relationship in the long run.

  • Real Estate Agent · Boynton Beach, FL · Member since 2014 · 49 posts · 12 votes
    12y

    @John Thedford  - Firm and consistent has always been the best policy with my tenants. Set the expectations and don't waiver. 

    That said, @Aaron Mazzrillo 's rule #6 is also one of my policies. 

    This is a great example for any current or future landlords and/or property manager.

  • Chris K.Pro Member
    Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
    12y
    Originally posted by @Account Closed:

    please explain the "pay or quit" notice vs. eviction for non payment of rent. are these the same thing? when someone decides not to pay, does the "pay or quit" result in a quicker procedure to remove a tenant?

     Luckily this isn't something we have to do. Some states require you to post a "pay or quit" notice before you can start court proceedings. Lucky for us we can just file non-payment of rent immediately.

  • Investor · Lafayette/Baton Rouge, LA · Member since 2013 · 1k+ posts · 915 votes
    12y

    @John Thedford I am totally with @Marcia Maynard and @Aaron Mazzrillo on the best course of action here.  NEVER give the money back when you are collecting from someone.

    I would recommend a collection course if you find any in your area.  That's where I learned a long time ago, never give any partial payment back.  Even if they try to be slick and write "payment in full" on their check or money order.  All it takes to counter that is three words "endorsed under protest" when you endorse the check/money order.  That's what works in LA.  Seek out and take a collection course - you need to know the legal answer to these type questions for the state you do business in.

  • Riverside, CA · Member since 2010 · 92 posts · 28 votes
    12y

    I'm all for training tenants by immediately enforcing rules I have on the lease or rental agreement; a "maintenance notification" clause, a "how funds are applied" clause, etc. are all good clauses to have in the contract. In my state I can just serve a notice for the unpaid portion of the rent. Your second post is more troubling to me as these tenants may not be a fit for your property, another way to "train" tenants might be to send a 30 day notice increasing the rent.

  • Real Estate Investor · Cheyenne, WY · Member since 2014 · 71 posts · 37 votes
    12y

    I guess I'm in the minority here.  To be fair though I don't mange my own properties, I get enough practice being the bad guy at work!  Unless I want to get rid of the tenant I would have handled it differently.  I would have either discussed it with the tenant and followed up with a certified letter, or just send a certified letter explaining that it was excepted this time but will not be accepted in the future and reminding them of terms.  I do think there are times to get rid of a tenant, and if this is the case I would start raising the rent as mentioned above. 

  • Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    12y

    Long ago I heard a great saying pertaining to the landlording business -

    "When somebody puts money in your hand, close it."

  • Huntington Beach, CA · Member since 2011 · 16 posts · 1 vote
    12y

    Just browsing through recent posts and want to thank you for sharing the experience and the responders.  This validates what needs to be done in this situation and will use it for myself one day as well.

    Thanks, 

    don't know how to hash tag names yet, but thanks John, Marcia and Aaron

  • Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
    12y
    Originally posted by @Aaron Mazzrillo:

    #6 Rule of Landlording - when a tenant gives you money, never give it back.

    You should have a clause in your lease pertaining to partial payments and how they do not void your ability to pursue necessary action to collect the full amount due.

     Coincidentally, the Ferengi First Rule of Acquisition.

  • Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
    12y

    Thanks for posting. We are in a similar situation, for $46. My biggest concern with the $46 is the whole tenant training idea, and that if you give someone an inch they will take a mile. What is odd is that we had a good working relationship since she moved in a few months ago. I suspect there is someone (boyfriend not living there) influencing her not pay.

    Tenant said she sent the check a month ago, I let her knew we never got it via phone, text, mail, and email, she hasn't responded to anything. I did explain we would be charging a late fee. Just emailed her again today ( we have emailed each other and texted before with no issues) and said a certified letter would be coming at her expense since my lease has provisions allowing that the tenant pays for our charges incurred due to lease violations, plus I  let her know exactly how much is now due with the late fees, and that late fees will be due again next month if she hasn't paid.  I suspect she is late with her city water bill as well, which needs to get paid before I can schedule the city rental inspection.

    I also mentioned that I was surprised by her lack of response, said I thought we had a good working relationship, that our company strives to provide top quality accomodations and expect our tenants to make timely payments, that tenant performance is considered at lease renewal, and said she should feel free to contact me to discuss this.

  • Property Manager · Sequim, WA · Member since 2014 · 19 posts · 11 votes
    12y

    I have found that payment in full is best. If I get a short pay, I'll start a dialog. If they are slow learners, I will post a 3 day and return the check. Don't think my evictions attorney would go to court with someone over $75. Your jurisdiction may vary. On the other hand, if I let it slide, they won't shape up. 

    Years ago, a tenant replaced a water heater without telling me and tried to get me to pay him. No old one, disposed of, I was just supposed to believe it was needing replacement. Don't think so!

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