So rent was due yesterday. As of today, still no money in my bank account. I provided a stack of deposit slips when we signed the lease and outlined expectations on how rent will be paid via deposits into my account.
The lease says I will charge a late fee if the payment is more than “0” days past due.
Since yesterday was a Sunday, would you wait until tomorrow to drop the hammer on him? Would you call or e-mail a friendly reminder and clarify expectations again? Any other advice?
I'd start with a phone call. Start with listening, then be firm, but not hammer dropping.
I'm very confused on why you're worried. You gave them deposit slips and they have to go to the bank to deposit them. Yesterday was sunday and the bank was closed. If they did night deposit it will be tuesday before it shows up. I'm i missing something?
@Jason Krawitz This is a bad sign going forward. I usually give people until the 5th to pay rent to cover situations like these.
If you don't wait and rent is due on the 1st only and late after that date - then they are late and it's not your job to plan ahead for them. They have on big boy/girl panties so they should figure it out since they rented the place.
This is your first property right? Don't go soft on this, if you were clear and it's outlined in the lease then call and figure out what's going on being nice about things but you should impose your late fee if they failed to pay. Being a Sunday isn't an excuse. - it was a failure on their part to think ahead. Which their brain activity or lack there of isn't your responsibility. Plain and simple.
Hope that helps.
Does your lease spell out what happens when the first of the month falls on a Sunday? Mine originally didn't, and I had tenants paying me on the 2nd, so I've updated the lease to make it crystal clear the rent must be in on the 1st or BEFORE the 1st when it falls on a Sunday. After all, the mortgage debits happens from my bank accounts on the 1st regardless of the day of the week.
If it's not in by today, the 2nd, hit them with the late fee. You have to be firm early on and let them know the rules are the rules. This coming November is another month when the 1st falls on a Sunday, so you'll have another chance to make things clear beforehand.
Thanks everybody. Very helpful responses.
My tenants who do direct deposit to my TD Bank account know that the bank is open on Sundays. When the rent is 3 days late, a Pay or Quit notice is served. If your bank isn't open on Sundays or holidays when the rent is due, your lease (going forward) should address that.
I go over all of this when signing the lease. They know that if a lease violation notice is served, such as a Pay or Quit, it will be $40 per posting, plus the late fee. Both fees are considered "additional rent" in the lease, and not paying them is the same as not paying rent.
It's expensive to be late. I'm actually OK with getting another $50 by waiting until the 3rd if it doesn't become a habit.
I would let it slide on the 1st go-around, assuming they are cooperative and responsive. Explain to them that it is due on the 1st and holidays and weekends are no excuse.
Really? Sweating it over 1 day. My leases state rent is due on the first and late after the 4th. Is this level of stress necessary for a few extra days? Life happens. There are holidays, weekends, inclement weather delays etc.
Reach out with a phone call if you don't get the rent by the 5th. If they are evasive then you likely have a problem tenant on your hands
Did you screen them properly? If so, have confidence in your processes and let the situation play out more than 1 day.
I would send a text..."no rent in account? Due on the first, late after the 4rth. Pls respond". I also give people a chance to pay their rent and don't impose late fees until after the fifth.
I never let people slide on rent. My lease is clear, rent is due on or BEFORE the 1st of the month. It's late as of the second and they get a text/email from me immediately asking if they forgot.
I see lots of people here give grace periods. I do not. People abuse grace periods. If you have a five day grace period people will pay you on the 5th. We used to do it, we saw it happen, we stopped. Due on the 1st, late on the second..
I also disagree with letting them slide because they are "new". This is your best chance to show them exactly the kind of landlord you are going to be, and the kind of tenant you expect them to be. If you want to be the landlord that lets things slide, then by all means just let them go ahead and pay whenever. If you want to be the landlord that is fair, but firm, NOW is the time to show them your true colors and start things off on the right foot. Tenants will, in general, take advantage of any and all weakness/understanding/patience/whateveryouwanttocallit you show.
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