Real Estate Agent · Hamilton, NJ · Member since 2013 · 464 posts · 311 votes
9y
I would talk to them and let them know that the new rent is x,xxx and that they still owe xx for the month. Rent will not be considered paid in full until you receive the remaining amount. Let them know that late fees will be applied if they do not pay within the grace period because this would be considered a partial payment.
Real Estate Agent · Hamilton, NJ · Member since 2013 · 464 posts · 311 votes
9y
I would talk to them and let them know that the new rent is x,xxx and that they still owe xx for the month. Rent will not be considered paid in full until you receive the remaining amount. Let them know that late fees will be applied if they do not pay within the grace period because this would be considered a partial payment.
Serve the notice immediately, contact tenant to confirm they understand and if necessary proceed with the eviction.
Likely a mistake on the part of the tenant. Once full payment is received you can cancel the pay or quit. Explain to the tenant that serving the notice of pay or quit is simply following proper business procedures.
Redding, CA · Member since 2016 · 224 posts · 143 votes
9y
Ian
With 250 rentals in Northern Ca (at my high point), I have run into this many times.
Cash their check, Serve a 3 day notice to pay or quit (do not include late fee). DO NOT ACCEPT ANY PARTIAL RENT AFTER this. Send a memo explaining the situation to them. Memo is way less emotional than talking. To keep my sanity years ago, I developed my way to manage my tenants. I manage them by mail.
I cut this (below) from one of my memos. After you tell them exactly what they need to do, add this verbiage:
"You will be billed $950 for the eviction services of the eviction lawyer, (lawyer name if available).
After the Sheriff’s lock out, if money is still owed, we have to do a Sheriff’s Wage and Asset Attachment. Most employers, including us, do not like to do this because of all the paperwork involved. This Wage and Asset Attachment is in effect for 10 years and will follow you to different jobs. It also gets very expensive for you, because the Sheriff charges you for all attempts to collect money owed from one or more of your employers.
I would really be better if you could borrow some money from your family, employer or friends to get caught up on your rent so you won’t be evicted. You could then pay them back later.
I hope this will help you try to get current so we do not have to evict next week."
__________
Believe me, the tenant will understand. They do not want the Sheriff near their place of employment.
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
9y
You should decide how much that rent raise is worth to you before deciding to go too far down the eviction route.
Example:
Current rent is $1,200/month. New rent: $1,300. Tenant is shorting you $100.
Evicting the tenant will cost you something that you will not likely see come back. If the eviction were free and you only lost 1 month of rent to get your next tenant, it would take you 12 months to recover the lost month at $100/month if you got a new tenant to pay the higher rent.
Persuasion and influence is a much better way. Negotiating a move out is the next best way. Eviction is probably the worst outcome. sending eviction-type letters can be persuasive enough to scare the tenant into paying the full amount, but try a friendly conversation first.
Enforcing a rent increase is mandatory on the part of a landlord.
If a increase is not paid the tenant is in violation of the lease. What most inexperienced landlords do not understand is that the vast majority of the time a eviction notice does not end in a eviction. The only time it happens is when the tenant makes a conscience decision to be evicted. How the landlord notifies the tenant they are in violation, pay or quit, begging etc. it does not matter the final resolution will be the same. The only variable will be the time line to that final resolution.
Sending a pay or quit notice is not for the benefit of notifying the tenants it is to protect the legal rights of the landlord. Sent the notice regardless of how or when you contact the tenant.
Lincoln City, OR · Member since 2015 · 59 posts · 54 votes
9y
Call them first. Last year the PM included a note on the back of the newsletter indicating that my rent was going up $25 in 2 months. I missed it plain and simple. I was busy, going on a 3 day weekend and didn't look at the back side of the newsletter.
They called me to let me know, 20 minutes later I was in their office paying the $25. Sometimes errors are made cause we are human. Maybe they will be nice to you when you make a mistake.
Investor · Denair, CA · Member since 2017 · 4 posts · 0 votes
9y
I like this reply......
I already collect all me rent by mail.
I would be interested to hear people's stories of online collection etc...
My 'memos' are real letters...
With 250 rentals in Northern Ca (at my high point), I have run into this many times.
Cash their check, Serve a 3 day notice to pay or quit (do not include late fee). DO NOT ACCEPT ANY PARTIAL RENT AFTER this. Send a memo explaining the situation to them. Memo is way less emotional than talking. To keep my sanity years ago, I developed my way to manage my tenants. I manage them by mail.
I cut this (below) from one of my memos. After you tell them exactly what they need to do, add this verbiage:
"You will be billed $950 for the eviction services of the eviction lawyer, (lawyer name if available).
After the Sheriff’s lock out, if money is still owed, we have to do a Sheriff’s Wage and Asset Attachment. Most employers, including us, do not like to do this because of all the paperwork involved. This Wage and Asset Attachment is in effect for 10 years and will follow you to different jobs. It also gets very expensive for you, because the Sheriff charges you for all attempts to collect money owed from one or more of your employers.
I would really be better if you could borrow some money from your family, employer or friends to get caught up on your rent so you won’t be evicted. You could then pay them back later.
I hope this will help you try to get current so we do not have to evict next week."
__________
Believe me, the tenant will understand. They do not want the Sheriff near their place of employment.