Rental Property Investor · Davenport, FL · Member since 2013 · 285 posts · 220 votes
Hey, just had a question for landlords out there to see what everyone else would do in this situation... We have a tenant who has been on time or early coming up on 3 years now and keep the place in excellent condition.
Recently, he was laid off and is collecting unemployment and seeking employment. The first month, rent came in late by 1 day, so we waived the late fee and explained if he was having trouble affording rent we could let him out of the lease. The next month, rent was late by 2 days, so we charged the $70 late fee. He said he couldn't afford the late fee and paid the full rent. The third month, he paid on time and did not pay the late fee that month either.
I sent a letter of "Balance Owed" for $70 yesterday. My question is, what would you do? Let the tenant slide on the late fee for now until they can afford it and take it from the security deposit if they never pay it or get aggressive with recovery, making an example of the seriousness of his obligation to pay us the full due amount?
not a good way to run a business in my opinion. A great tenant, 3 years, doesn't trash the place? Was late by 1 or 2 days due to extenuating circumstances and you are giving him a hard time? He paid you in full! Don't be so nasty. I have several businesses, you don't treat your good customers like that.
Risking pissing off and losing great tenant and stable rent for 70 bucks? Use common sense
Kyle Scholnick give the guy a break he's here to find out if what he is doing is a best practice in REI...but let's look at what is best practice...oh wait it's called learning from your mistakes...I have 10 SFH/12 mortgages that I collect payments on and a 351 apartment complex with 351 personalities that u must deal with...my biggest advice I give people is once u have made a mistake analyze it and figure out what wen wrong and make it your goal to never make it a 2nd mistake...in this situation if this tenant is willing to leave than let him leave...but the end of the year is coming and trying to find a new one might be difficult...so I might do is go over his finances with him (not weird because his rent is the only thing that matters above any other bill) and figure out what he can afford (pending on the landlord situation) and create a contract for a specific period up to spring time and find a tenant that is willing to pay your rate...just my humble opinion
I can't imagine not having enough compassion for someone that has rented my house for 3 years to let $70 slide. IMO $70 is crazy high anyway. I agree that's hard core.
The dude is unemployed and paying rent on time.
If I were the tenant I would have moved out already and left you with the possibility of a less reliable tenant. I agree with the others that say business is also about people. Use compassion to your benefit. your tenants will appreciate you even more. If it was a different kind of tenant it'd be a different story.
David Stone when you say "@Deanna McCormick, if I don't pay my mortgage on time I get hit with an even larger late fee so I'm not sure how $70 for being 7 days late (2 days after Grace period) is too high. We did try working with him and he ensured us he could afford it."
The 16th day is late to the mortgage company with no penalty. They have a ton of grace for you and have a lot more at stake to boot. Cut the guy some slack.
@David Stone I meant hard-core because of the lack of flexibility with your tenant; again, I'm not saying you're wrong in your actions, just that I wouldn't do it that way.
Man, there's been a lot of activity on this forum and I've been on a vacation with the family at Disneyland and haven't had time to even read every response, but here's the update...
Followed up with tenant, wished him a merry Christmas and told him to forget the late fee but to make sure he pays on time for now on, got a response back a few days ago of "you bet, we can do that."
But, here is the 5th and guess who didn't pay?
This is obviously a divided issue and both sides have provided compelling arguments. This is one of the best forums I have been involved in, hearing reasoning from both sides of the argument. But, three months of late rent is unacceptable. Thank you every one for your input. But, I think it's clear how this one is turning out... Sometimes excrellent tenants turn south even against their best intention... wish me luck :)
Hi Levi, You got a lot of feedback already. The one thing you always want to do when taking any action against a tenant is be certain of what your state's landlord tenant act permits and doesn't permit. I saw a comment earlier about applying the tenants payment to the late rent fee and not the rent. That isn't permitted by all states. What you can do is take the late rent out of the security deposit. The section of the VA landlord tenant law that permits this is below. You can find more information at
§ 55-248.15:1. Security deposits. A. A landlord may not demand or receive a security deposit, however denominated, in an amount or value in excess of two months' periodic rent. Upon termination of the tenancy, such security deposit, whether it is property or money held by the landlord as security as hereinafter provided may be applied solely by the landlord (i) to the payment of accrued rent and including the reasonable charges for late payment of rent specified in the rental agreement; (ii) to the payment of the amount of damages which the landlord has suffered by reason of the tenant's noncompliance with § 55-248.16, less reasonable wear and tear; or (iii) to other damages or charges as provided in the rental agreement. The security deposit and any deductions, damages and charges shall be itemized by the landlord in a written notice given to the tenant, together with any amount due the tenant within 45 days after termination of the tenancy and delivery of possession.
can anyone give me some advice? I have lived in my apartment for 5years and since December of last year have been late each month on my rent. My rent is current but not past due late fees. As my lease read rent due 1st of each month 1st day late is 50.00 and 5 dollars a day after. In December my money order was lost and I had to file for lost money order I did not receive my money back until April. My landlord told me to just pay it when I got my money back. Each month since December I have struggled paying rent on time but never late in the past. All my rent is current except late fees. He sent a letter in May demanding all late fees be payed in the amount of 1600.00!!! I'm shocked he is charging me that much even though my lease does state 50 first day and 5 a day after. So I've been charged everyday since December until April when I payed December rent. And I was late late in February, March, April so those late fees are adding in as well. But the December amount now owed for late fees is more than my monthly rent. He told me pay a extra 300 a month till paid off. Obviously I don't have that extra to pay each month. And now he is demanding it all paid or he will evict me? I shouldn't of been late it's my responsibility but just feel that is a little much to pay. Please someone give me some advice on how to handle this. I live in the State Missouri
Why do you think you can pay your rent late each month without penalty? Why do you think you can not pay December rent until April? I have to be honest, I have a clause in my lease that states if you are late three or more times it gives me the right to evict, and I would have a loooonnnngggg time ago. I also have it in there that if you accrue any late charges or fees, your next months rent check covers those first, which would then make you late for this month if you didn't pay them in full.
The truth is that your landlord is sick of your games and wants a new tenant. Pay up or move.
@David Stone Dude that is seriously hard core, and quite frankly I think unnecessary. $70 bucks for being late 2 days on an otherwise decent tenant? I thought every state had a least a 5 day window. That may even be a violation of usury laws, not sure. Just be careful. Not judging but damn. To each his own I guess.
I'm no expert but I think you should let the $70 late fee go. He's showed that he can pay on time for 3 years straight so I think he deserves the benefit of the doubt. Also he paid on time the following month, now if it starts to become consistent then i think you should start to enforcing your policies
@Tracy Stanley obviously your landlord does not want you there anymore and is playing hard ball. Since the amount owed is more than your rent already and most likely your deposit also, you will have to move out some time before your lease ends, because it won't be renewed. So you can:
1. Find a new place and move out, but terminate your lease cleanly.
2. Live there until the lease ends and pay the rent in full (w/o the late fees), but don't be late, because he will try to evict you. In most states, the landlord cannot collect late fee in a judgement, but he can keep the deposit to cover the late fees.
NJ is 5 days late before you can charge a late fee however you cannot enforce the late fee unless your lease agreement states that late fees become additional rent owed. Same goes for legal fees. Personally I would let it go esp since he was only 2 days late and you have never had issues in the past. Believe me...a good tenant is a Godsend! I had a horrific experience in the past
Landlords that wave a late fee for good tenants and inforce it for bad tenants can be charged with discrimination. The only way around discrimination in regards to a lease clause such as late fees is to remove it from your lease if it is not to be uniformly enforced.
Or include a statement that reads...lease shall be enforced only by mutual agreement :(
A lease is a legal contract, if enforcing a lease is a unpleasant responsibility for a landlord they should not have one.
I own multi family units and I tell all my tenants, even the good ones, that I always charge the late fee. It's the fair thing to do. All my tenants know that they are getting the same treatment as their neighbors, and it saves me a lot of headache because everyone has the same policy.
I have a question. Our rent was late in July but was paid. No late fees were added due to the rental company understanding what was going on. Fast forward to the end of September, september 25 to be exact, the tacked on around $400 of late fees for July. Is that legal? I rent in Texas. Are they able to add late fees, months later, when the balance has been paid?