late fees
How do you enforce late fees? Just send bills in the mail?
I am having a tough time with a few renters who consistently pay late.
I have 12 units and I am thinking about paying a maintenance guy $300 per month to handle all maintenance and pick up some rent of slackers.
I have one girl that has yet to pay this month, won't call back and keeps making excuses- How long should I let it ride before demanding she leave? She is a really sweet younger girl and this is the first time I've had problems although she normally sends the rent late.
I just get tired of being the bad guy, calling people and being ignored.
That IS this biz, unfortunately.
We collect late fees AND we evict. I have two going to court next week. OTOH, I have collected over $3k in late fees so far this calendar year.
Draw your line. Take emotion out. Try to be the good guy until they cross that line. When they do, accept no BS.
People are creatures of HABIT and we all will push as much as we can. In my lease I had a SEPARATE PARAGRAPH describing late fees (how much, when they start) and the tenant had to SIGN THEIR NAME in a blank space at the end of the paragraph.
Then starting on the first month if the rent wasn't there on the FIRST I called them. On the 3rd I sent the notice and the bill for late charges. If they hadn't paid by the end of the "three day notice to cure or quit" I was back at the JPs office filing for forcible detainer.
The problem here isn't the tenant, the problem is YOU.
This is a business, not a hobby. You need to treat it as such.
all cash
The problem with late fees is the tenant doesn't think his rent is due until right before the late fee kicks in, which here in NC is the 5th.
So if I don't get the rent by the first, as specified by the lease, by the second I deliver the 10-day Pay or Quit notice. Now the clock is ticking for eviction.
If at any time before the ten days is up the tenant wants to settle up in full, including the late fee, fine. If not, I have not wasted any time in starting the eviction.
I won't chase rent and I won't chase late fees. Tenants who are chronically late (or otherwise try my patience) get the heave ho, no reason needed because they are on MTM leases.
#1 Tenant Screening Contributor
- Property Manager
- Honolulu, HI
As others have said, you need to treat this as a business- a contract is a contract. If you don't enforce one clause, why would anyone follow other terms? If a tenant habitually pays late, and does not include their late fees when they DO pay, you need to collect what is OWED TO YOU.
My preferred practice when dealing with amounts owed of less than a month's rent, is first of all to send monthly statements showing their balance, and a reminder that our lease terms specify that any money collected is paid to the oldest amounts first. In other words, the outstanding balance is for the current month partial rent due-- not "just" a late fee (or repair bill, or whatever) from two months ago. For some, (but certainly not most) this provides a little more motivation. It also (depending on your local laws) makes the actual eviction easier (rent vs. other than rent issues).
In any event, twice a year I send 60 day letters to ALL who owe even a $25 balance (regardless of the reason), informing them that they MUST zero their account or it WILL go to eviction immediately. Accounts must be cleared by May 5th (accounting for the normal 5 day late period), which gives them the opportunity to use their tax refund, and again October 5th (just prior to the Holiday spending sprees). No Deals, No Excuses. Pay or Move, No Exceptions. You MUST follow through.
if you really tired of listening with her excuses then you must talk to her and remind her what was written in your contract if she doesn't pay attention to this it's about time to ask her to move and give her atleast 2 weeks to look for another place.
Like someone said take your emotions out and run it like a business.
It amazes me that people pay their cell phone bill, cable, etc before they pay rent. When they live in a regular apartment they get kicked out but when an investor owns it they think "I will just pay late".
Set your ground rules upfront and stick to them Market is good right now for tenants so don't keep the bad ones.
nc is correct. In sc tenants don't understand that the rent is due on the first either. Our landlord tenant act states the 5 day notice to quit letter must be posted when they're late so good landlords and large apartment complexes post on the 6th. You only have to post that letter once.
I live in a large duplex/house and just went through this with one of two roommates upstairs. Posted the letter in November but didn't move for eviction. The father paid up. Then this month I emailed him and told him I've processed the eviction and suggesting he have daddy contact me. Nothing. I finally agreed to take two months rent if the dad would put the money in my hand and get him out. I have a couple leased up and I must know that he'll be out from someone responsible. I then filled out the notice to dismiss and we'll see.
After this nightmare experience, I will always proceed on the sixth and possibly give them a copy of the 5 day notice letter. That way when the court asks if it's posted there's no shock involved.
What's worse the magistrate's clerks look at you as a "weak" landlord if you come in at the end of the month and have let a tenant establish a pattern of being late. This is true.
Sometimes things are so bad (son and group building a bonfire in the back yard in 100 degree temps this week) you just tell the adult to move on and negotiate a reference to get rid of them. Otherwise, you'll be stuck and they could burn your house down.
Talked to someone this morning whose mother evicted some girls. They broke her windows and spent alot of time harrassing her on the phone.
As soon as it is the 6th of the month and their rent is not in my mailbox I am sending a pay rent or quit notice. Tenants need to understand that you are always on the ball and don't play games.
I don't care what the excuse is, I am not a charity and they are getting the notice. Tenants are used to taking advantage of landlords (because most are soft or don't know what they are doing.) I quickly train them (I actually tell them before they even apply for the property) that I have zero tolerance for late rent.
Originally posted by "Heathen":
That IS this biz, unfortunately.We collect late fees AND we evict. I have two going to court next week. OTOH, I have collected over $3k in late fees so far this calendar year.
Draw your line. Take emotion out. Try to be the good guy until they cross that line. When they do, accept no BS.
Outstanding commentary.
I am in the process of applying late fees to one of my tenants. I am VERY clear from the start, you are late fees will be due. You don't pay - you will be out. Unemotional = business. So sorry. :violin:
Do not EXCEPT the excuses, but EXPECT them. I have gotten to the point where I hear like a dog: blah blah blah NOT PAY blah blah blah HARD TIMES blah blah, PLEASE.
I am a very companionate person. I donate my time, my money, my sweat, my tears, and sometimes even my blood (literally). But, NOT IN MY BUSINESS.
If you want to be in the business of charity, get out of this one and get on a staff of some charity; otherwise, you must separate the two.
UPDATE: The two evictions I mentioned at the top of this thread, we won. Both showed to court (unexpectedly). They both CONTINUED their song and dance about how they will pay. “Can we please give them another week or at least until payday?” They do not know the system that we have to wait 10 days for the appeal process to run its course (in PA) and then 11 more days for them to get out - so we say “sure, but no later than then.” Payday comes… no money. This is the game. They go for free rent, you run your business. Stick to the time tables. Do not waiver. Now, let us see who has the strongest will. (we did and will continue to)