Is it Ok to take a partial payment?

Question

One of my tenants called promptly at the first of the month letting me know that they would be $300 short of rent.  She is a traveling nurse and had an issue with her car.  She has to have a car or can't make any money, so I understand her dilemma.  She's been a great tenant so far, and will have the rest of the rent to me by the 15th.

Does anyone else do this?  I see everyone talking about serving papers immediately, but I think she was upfront and addressed the problem before it actually became a problem, so I'm going to be willing to work with her.

Will Barnard · Answer

Looks like your intuition was good and the good tenant with a good track record just hit a bump in the road and immediately repaired the damage.

Tony Frasher · Answer

Ok, so my tenant paid the rest of the rent today, ahead of when we agreed upon, so I'm happy.  I guess we'll just have to see what happens on the first of the month.

Tony Frasher · Answer

I'll definitely keep that in mind to just take full payment at a later date.

That's my general feeling Aaron.  I have no reason so far to not trust her, as she has paid without issue until now.  I've been out and about the last 2 weeks looking at more properties, and it seems like my area is flooded with rentals now, and the rents are about $100 less that what I have mine rented for.  My gut says to get the $300 2 weeks late rather than evict, possibly lose another month waiting for new tenants, and possibly having to lose $100 a month.  That being said, this is my first issue like this, so I just wanted to bounce it off someone else.  Thanks for everyone's input.

Aaron Catt · Answer

'forbearance is not a waiver' is written into my lease for this and other types of issues.

Use your mind and gut on this one.  Bad things happen to good people and getting rid of this person could cost you more in the short/long run.

If it becomes a habit, cut it off and move on!

Michael Rossi · Answer

NO!  DON'T EVER TAKE PARTIAL RENT!  If this is a long time tenant and you want to cut her some slack, then collect the entire rent on the 15th.  If she doesn't pay the entire amount plus the late fee on the 15th, then you'll be able to start the eviction on the 16th.  Talking partial rent in many jurisdictions will void any eviction for that month.

The problem with accepting late rent is that it is very difficult for people to catch up once they get behind.  Once they get a month or more behind, it's cheaper for them to move and stiff you for the rent than it is to pay you.

Good Luck,

Mike

Will Barnard · Answer

I would check with the local laws in your area before making a decision. In many locations, accepting a partial payment does not negate you from evicting if the balance is not received. You lease contract and the verbiage in it is also very crucial.
As Mike pointed out, there are some areas where accepting a partial payment allows the tenant to stay for an extra month.
In the situation you have described, it sounds as if your tenant has been on time during the lease and even made the effort to contact you to explain. That should (depending on your local laws) allow you to accept her explanation and not start eviction preceedings, unless she does not come through at the 15th.