Commercial property won't pay rent unless I ask for it.

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Commercial property won't pay rent unless I ask for it.

Nancy Curran
Real Estate Investor · Chicago, IL · Member since 2014 · 286 posts · 159 votes

This is becoming so annoying. This tenant, who rents an office from me, never pays until I ask. When I send him a text requesting the rent, usually in a few days he quick pays me through Chase. I've told him he owes late fees but he refuses to pay. He just sends me the rent. He lives out of state and he has another guy managing his enterprise. The manager doesn't speak English very well so talking to him is futile. I know I can escalate this and not accept the rent and give a 5 day notice but that seems like so much work to do for $50. Anyone out there ever have this issue? Should I just put up with it? 

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Account Closed
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
10y
Originally posted by @Nancy Curran:

This is becoming so annoying. This tenant, who rents an office from me, never pays until I ask. When I send him a text requesting the rent, usually in a few days he quick pays me through Chase. I've told him he owes late fees but he refuses to pay. He just sends me the rent. He lives out of state and he has another guy managing his enterprise. The manager doesn't speak English very well so talking to him is futile. I know I can escalate this and not accept the rent and give a 5 day notice but that seems like so much work to do for $50. Anyone out there ever have this issue? Should I just put up with it? 

 Well, in this case, I don't know that I'd create a bunch of drama and work for yourself, because finding a new tenant and going through eviction will give you drama and work.  And as you say, it's a little mosquito problem.

I used to be really irritated with tenants needing payment reminders.  But, then one day I realized it made my life easier to just remind them to pay.  Most of my tenants were law students and they had the money, they were just exhausted.  They often told me they were grateful for the reminders.  I just sent a mass text that rent is due tomorrow, if you haven't paid yet, please do so.

So, how about you send him a text to pay a few days before it's actually due from now on?  If it's due on the 1st, send him a reminder to pay the rent on the 27th of each month.  And see how that goes.

This is one of those choose-your-battles situations, I think.

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  • Robert Melcher
    Residential Real Estate Broker · San Antonio, TX · Member since 2016 · 506 posts · 311 votes
    10y

    commercial rules are very different from residential.  In that world, it's all about the lease.  I would think (with commercial) you can lock them out of the business if they are 5 minutes late...

    You need an an attorney consultation, and a local service to deliver notice/perform lockout-ETC.

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  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    10y

    Send him a statement.  Show the $50 late fee on the statement and a $X payment,  The next month he pays $X and is short the $50 late fee, apply the payment first to the outstanding late fee, then to the rent.  He's now $50 short on rent and $50 short on the late fee.  The next month, he pays $X and you apply that to the outstanding rent and late fee.  Now he's $100 short on rent and $50 short on the late fee.  Can you send him some type of "pay or quit notice" for being short on rent?  I'm not into commercial so I don't know how that works.  It works for residential.

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    10y

    Start the eviction. Either he pays and continues to pay on time without your reminder or you get a new tenant. You and your tenant are both lax in regards to the proper operation of a business. When a tenant pays late it is because the landlord does not maintain a professional standard regarding their business practices. It's always easier to make excuses than to inforce rules.

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    10y

    I wouldn't put up with it. Not paying rent on time breaks one of my three cardinal rules for property:

    1. Pay on time, all the time.

    2. Don't damage my property or keep it in filth.

    3. Don't cause trouble for me/other neighbors/the law.

    The second time I had to ask I would have already started the eviction process. 

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  • Marcia Maynard
    Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    10y

    What would it take for you to have a conversation with the business owner? Is he the one that signed the lease? What does the lease say? I would review the terms of the lease with the business owner and let him know you intend to enforce them. He is now behind XX in late fees as well, so invoice him for that. Ask him what he intends to do and tell him what you are prepared to do if rent is not paid on time and he does not come current with the late fees. Suggest that he set up automatic payments, to pay rent on time and to avoid late fees from this point forward.

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  • Nancy Curran
    OP
    Real Estate Investor · Chicago, IL · Member since 2014 · 286 posts · 159 votes
    10y

    Thanks all. You are all very correct, I'm being lax. Yes, I can lock them out, then I get a brick through my window. And I really don't want to go through all this for $50 but it looks like I'll have to. 

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  • Robert Nason
    Lowell, MA · Member since 2014 · 260 posts · 99 votes
    10y
    No, don't put up with it. They are. dictating terms to you and it's your property! Do you see what's wrong with that? Kick him to the curb.
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  • Nancy Curran
    OP
    Real Estate Investor · Chicago, IL · Member since 2014 · 286 posts · 159 votes
    10y

    Yes of course I see what's wrong with it, or else I wouldn't have posted. As I said, I just don't want to deal with these little mosquito problems.

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  • Mike Hanneman
    Investor · Coeur d'Alene, ID · Member since 2016 · 551 posts · 218 votes
    10y

    If it's just $50 to you then why are you here asking this question? You had multiple responses and don't want to do anything about it. Have fun continuing to ask for rent every month!! Good luck with your landlord "hobby." 

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  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y
    Originally posted by @Nancy Curran:

    This is becoming so annoying. This tenant, who rents an office from me, never pays until I ask. When I send him a text requesting the rent, usually in a few days he quick pays me through Chase. I've told him he owes late fees but he refuses to pay. He just sends me the rent. He lives out of state and he has another guy managing his enterprise. The manager doesn't speak English very well so talking to him is futile. I know I can escalate this and not accept the rent and give a 5 day notice but that seems like so much work to do for $50. Anyone out there ever have this issue? Should I just put up with it? 

     Well, in this case, I don't know that I'd create a bunch of drama and work for yourself, because finding a new tenant and going through eviction will give you drama and work.  And as you say, it's a little mosquito problem.

    I used to be really irritated with tenants needing payment reminders.  But, then one day I realized it made my life easier to just remind them to pay.  Most of my tenants were law students and they had the money, they were just exhausted.  They often told me they were grateful for the reminders.  I just sent a mass text that rent is due tomorrow, if you haven't paid yet, please do so.

    So, how about you send him a text to pay a few days before it's actually due from now on?  If it's due on the 1st, send him a reminder to pay the rent on the 27th of each month.  And see how that goes.

    This is one of those choose-your-battles situations, I think.

    2Reply
  • Nancy Curran
    OP
    Real Estate Investor · Chicago, IL · Member since 2014 · 286 posts · 159 votes
    10y

    Mike, Pipe down. Why the hate? Who says I'm not doing anything? I don't need to justify to you why I am posting. Sue Kelly actually nailed it. Thank you, Sue. 

    Mike, good luck living in "Idaho".

    2Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    10y

    Commercial property won't pay rent unless I ask for it.

    The obvious solution is to stop asking.

    Tenants are not babies and do not need to have their mommy remind them to pay rent. If you have to remind them to pay it is because they expect you to manage that part of their life for them. It is not your responsibility as a landlord to also be their mommy. 

    Simply step up your management responsibilities. Sent your tenant a letter outlining the fact that you will no longer be asking to be paid and if he is late again you will be terminating his lease. Life is much easier when it is handled in a professional manner. Reminding him to pay is not a landlords responsibility and may be no big deal but good tenants do not need reminders to manage their own responsibilities in life.

    There is no excuse for you or your tenant to be behaving the way you are. You have a problem, your tenant does not, you should fix it permanently.  

    All tenant problems start with the tenant and end with management.

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  • Mike Hanneman
    Investor · Coeur d'Alene, ID · Member since 2016 · 551 posts · 218 votes
    10y

    @Nancy Curran there is absolutely no hate and you don't need to justify anything to me, these were just questions to get the mind thinking.

    @Thomas S. is right you have the problem not the tenant, make it the tenant's problem.

    "Good luck in Idaho"... Thanks Northern Idaho is beautiful! I live where so many people want to vaction.

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  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    I understand the hard a** approach, and depending on the issue or other problems I had with a tenant, I'd often take that approach.  But, sometimes you need to have a drink and then ask yourself, which will be worse - having to send a reminder to a tenant who does always pay a few days after getting the reminder - or finding a new tenant who might end up worse?

    There are just so few perfect tenants in the world.  Sigh.

    0Reply
  • Zach Ward
    Investor · West Monroe, LA · Member since 2015 · 34 posts · 7 votes
    10y

    Do utility companies send Bill/reminders with due dates to pay...why yes they do and I'm glad because everybody gets so busy they "forget" I know I can't always remember what's due and when without my E-mails/auto text/ect... so send a text. It's 2016 and tech makes things easy. I send a text to all my tenants day before it's due and it works fine for me. Now, if they are late after my monthly reminder then it does become their problem. You can be stern and hold them to lease without being a D--k about it. Catch more flies with honey which means less of your day fuming over something trivial.

    1Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y
    Originally posted by @Zach Ward:

    Do utility companies send Bill/reminders with due dates to pay...why yes they do and I'm glad because everybody gets so busy they "forget" I know I can't always remember what's due and when without my E-mails/auto text/ect... so send a text. It's 2016 and tech makes things easy. I send a text to all my tenants day before it's due and it works fine for me. Now, if they are late after my monthly reminder then it does become their problem. You can be stern and hold them to lease without being a D--k about it. Catch more flies with honey which means less of your day fuming over something trivial.

     So true.  I used to find myself fuming over not having received the rent from so and so again yet.  Granted, if the reminder doesn't work, then you deal with them stringently.  And obviously, you have more love in your heart for the tenants who just pay every month without needing a reminder.

    But, a funny thing I learned, is that just because a tenant always pays on time, that doesn't mean that they aren't actually one of the biggest pains in your rear on other issues.

    As people have mentioned time and time again.  "I have this PITA tenant, but he always pays on time."  LOL.

    If all you have to do for that one otherwise hassle-free tenant is send them a reminder every month - well, it's all relative, ain't it?

    1Reply
  • Muhammad Abdullah
    Investor · Cleveland, OH · Member since 2012 · 145 posts · 39 votes
    10y

    @Nancy Curran

    Im sure you know your market and you also know that all rules don't fit in every market. Just remain administratively firm and or find someone who speaks that manager language and go at it that way. It'll be funny if he actually speaks English..

    Good luck 

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