Investor/Landlord · NWA, AR · Member since 2016 · 227 posts · 132 votes
[Likely questions with an obvious answer to all you experienced folks...]
My rental property is in Arkansas where the state statute notes a 5-day grace period. If rent is due on the 1st, can I send a "you're late" notice on the 2nd even though they have until the 5th of the month to pay in full?
And if I understand all this correctly I can't charge a late fee until the 6th of the month. That begs the question, then: why would a tenant feel obligated to pay on time on the 1st?
Investor · Little Rock, AR · Member since 2016 · 152 posts · 40 votes
10y
I know an investor who mails out an eviction notice the 3rd if rent wasn't received by the 1st. They receive it the 4th and I suppose the eviction process begins the 5th. If they notify him in advance, they have a problem and will be late, he will work with them. Otherwise, he's cutthroat. However, he doesn't have many issues with his renters.
Investor · Little Rock, AR · Member since 2016 · 152 posts · 40 votes
10y
I know an investor who mails out an eviction notice the 3rd if rent wasn't received by the 1st. They receive it the 4th and I suppose the eviction process begins the 5th. If they notify him in advance, they have a problem and will be late, he will work with them. Otherwise, he's cutthroat. However, he doesn't have many issues with his renters.
I know an investor who mails out an eviction notice the 3rd if rent wasn't received by the 1st. They receive it the 4th and I suppose the eviction process begins the 5th. If they notify him in advance, they have a problem and will be late, he will work with them. Otherwise, he's cutthroat. However, he doesn't have many issues with his renters.
Is the investor in a state with a grace period? I think that's my sticking point--trying to get my head around on-time payments, grace periods, and the late fee.
I've been so fortunate with tenants to date. Just want to be prepared with this summer's turnover.
Investor · Newark, DE · Member since 2015 · 248 posts · 178 votes
10y
I know places that will send out a letter after the 5th demanding payment in full even if you have told them it will be late, they have to do this by the landlord-tenant code.
In your situation, depending on your landlord tenant regulations, I would notify and proceed with an eviction. If he pays by the 5th I would inform him that the next time he does not pay by the 5th I would be evicting or not renewing his lease. This type of situation is why M2M leases are the best contract for landlords.
What you can do based on your regulations at this time is less important that how you deal with this tenant in the future. You do not want a tenant that pays late twice. Any tenant that feels it is OK to pay late is the worst kind to have. Total lack of respect for landlord.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
10y
I am also in a state like yours where we can't charge late fees until after the 5th. When one of my tenants questioned this I told them if they paid routinuely late but before the 5th that is what I would tell any landlord that called for a reference. Just because there is no fee doesn't mean it wasn't late. Anyone who thinks the late fee doesn't apply to them is going to cause you problems. I do notify people if I don't get rent on the 1st.
Investor/Landlord · NWA, AR · Member since 2016 · 227 posts · 132 votes
10y
Thanks to all for your responses. It makes sense to report as late any payments not received by the first. I'll make sure I edit the lease to reflect that as well as the late fee.
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
10y
[Sample communication from our "Rent Past Due" letter.]
As per your rental agreement:
* Rent is due on the first (1st) day of the month.
* Rent is late on the second (2nd) day of the month.
* We allow a grace period through the fifth (5th) day of the month to pay your rent without incurring a late fee.
* On the sixth (6th) day of the month we charge a late fee of fifty dollars ($50.00).
* If we do not receive your rent in full in a timely manner, we will serve you with a 3-day legal notice, “Notice to Pay Rent or Quit”. Each time we serve a legal notice, we charge an additional twenty dollars ($20.00).
* If you do not follow the terms of the “Notice to Pay Rent or Quit” we may then begin eviction proceedings against you and you will be charged with the crime of “Unlawful Detainer” if a judge upholds our claim.
[Sample communication from our "Rent Past Due" letter.]
As per your rental agreement:
* Rent is due on the first (1st) day of the month.
* Rent is late on the second (2nd) day of the month.
* We allow a grace period through the fifth (5th) day of the month to pay your rent without incurring a late fee.
* On the sixth (6th) day of the month we charge a late fee of fifty dollars ($50.00).
* If we do not receive your rent in full in a timely manner, we will serve you with a 3-day legal notice, “Notice to Pay Rent or Quit”. Each time we serve a legal notice, we charge an additional twenty dollars ($20.00).
* If you do not follow the terms of the “Notice to Pay Rent or Quit” we may then begin eviction proceedings against you and you will be charged with the crime of “Unlawful Detainer” if a judge upholds our claim.
Marcia, this is excellent--thank you!
One question: do I need to qualify what's considered "a timely manner"?
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
10y
Timely manner generally means as soon as possible. When I speak with the tenant I say, "We need to collect the rent and late fee now." and/or "If you don't pay, you can't stay." and/or "This isn't working. We need to talk about a move-out plan."
I don't define "timely manner" in the document, because what I want to do can vary depending on the situation. For example, if a tenant stays in contact with me, is cooperative, has a good track record, and has a legitimate reason for being late, I may give him a little more time to get the rent and late fee to me before I would post a legal notice and proceed to file for eviction. If the tenant is a stinker, then I will act more swiftly and post the legal notice as soon as I'm legally able to do so. Once I post a legal notice which defines a time-line, I follow through with it. Evictions in my jurisdiction take less than a month if I stick to the legal time-line.
Timely manner generally means as soon as possible. When I speak with the tenant I say, "We need to collect the rent and late fee now." and/or "If you don't pay, you can't stay." and/or "This isn't working. We need to talk about a move-out plan."
I don't define "timely manner" in the document, because what I want to do can vary depending on the situation. For example, if a tenant stays in contact with me, is cooperative, has a good track record, and has a legitimate reason for being late, I may give him a little more time to get the rent and late fee to me before I would post a legal notice and proceed to file for eviction. If the tenant is a stinker, then I will act more swiftly and post the legal notice as soon as I'm legally able to do so. Once I post a legal notice which defines a time-line, I follow through with it. Evictions in my jurisdiction take less than a month if I stick to the legal time-line.
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
10y
@Susan H. I uploaded my "Rent Past Due" letter into the BP File Place. Go to Tools-File Place-Other Documents and look for contributions with my name. Free free to modify those for your own use. I have four documents there. All the best!