Month-to-month tenant just texted they'll be late. 1st week here.

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Month-to-month tenant just texted they'll be late. 1st week here.

Richard Ladenberg
walnut creek, CA · Member since 2017 · 13 posts · 5 votes

This is in Georgia.

They texted me they can't pay October rent until they get paid on the 11th because of their car insurance deductible. I do not want to start off on the wrong foot and seen as a push-over and I obviously want to treat this as a business. I also don't want to start the relationship with them being spiteful because I follow the rules since this is a shared housing environment. So I will be posting an eviction notice. But what do I say to them? Do I not reply to the text and just talk to them in person? Suggesting they use credit cards or other means to pay their other obligations because I will post an eviction on the 1st. Can I suggest them using other means to pay their other obligations because I need the rent on the 1st through text, or will that count against me in court?

Evictions are always hopefully a last resort and this will be my first one I've ever done while doing this for 2 years. But I know it needs to be followed to the T otherwise it causes a nightmare in the long run. I've never had a late tenant either. They have only been living here a week and I can already see how they won't be a good roommate/tenant. Aside from a 60 day notice (Georgia law says 60 days from landlord, even tho it's a month to month lease) I don't need any just-cause to end the term, right?

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Kristina Heimstaedt
Real Estate Agent · Newport Beach, CA · Member since 2017 · 259 posts · 293 votes
9y

If this is the first time, I wouldn't go down this rabbit hole. Most tenants aren't going to let you know that they're going to be late up front like this. I would be more forgiving if they tell you up front. I don't think it means that you're a pushover rather it means that you're realistic and accommodating. I would be of the opinion:

"I'm very disappointed to hear that you will not be paying rent on our agreed upon schedule per our lease agreement. However, I appreciate that you let me know that you will be late. Given these circumstances, I look forward to receiving rent on the 11th including a late fee, per our lease, bringing your grand total of x. Thank you for being up front about your circumstances. However, I look forward to this being our last conversation about late rent."

Everyone is different, but this is how I would handle the situation. I think it demonstrates that you heard their concerns, but that you're demonstrating flexibility. Obviously if your lease doesn't have a late fee clause, you may be up a creek without a paddle, but maybe a good lesson for next time as well.

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  • Phil Mcnally
    Real Estate Investor · Brisbane, CA · Member since 2014 · 76 posts · 48 votes
    9y

    I would not suggest anything to them. Just clearly state your rules that they have signed.

    Rent is due on...

    Eviction will start X days past due.

    Then follow these rules

    2Reply
  • Steve B.
    Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    9y
    Do you not have a "late fee" explicitly listed like most standard rental agreements? The language of a standard, state specific rental agreement, should dictate your actions.
    0Reply
  • Kristina Heimstaedt
    Real Estate Agent · Newport Beach, CA · Member since 2017 · 259 posts · 293 votes
    9y

    If this is the first time, I wouldn't go down this rabbit hole. Most tenants aren't going to let you know that they're going to be late up front like this. I would be more forgiving if they tell you up front. I don't think it means that you're a pushover rather it means that you're realistic and accommodating. I would be of the opinion:

    "I'm very disappointed to hear that you will not be paying rent on our agreed upon schedule per our lease agreement. However, I appreciate that you let me know that you will be late. Given these circumstances, I look forward to receiving rent on the 11th including a late fee, per our lease, bringing your grand total of x. Thank you for being up front about your circumstances. However, I look forward to this being our last conversation about late rent."

    Everyone is different, but this is how I would handle the situation. I think it demonstrates that you heard their concerns, but that you're demonstrating flexibility. Obviously if your lease doesn't have a late fee clause, you may be up a creek without a paddle, but maybe a good lesson for next time as well.

    8Reply
  • Richard Ladenberg
    OP
    walnut creek, CA · Member since 2017 · 13 posts · 5 votes
    9y

    I do. There is a late fee and it is cause for eviction as well in the lease for this. Was trying to think long term though since they are living with me. Don't want any animosity in the housing environment if I do the eviction and they end up paying later. I guess that's what comes with the business though.

    0Reply
  • Bonifacio Capuyan
    Discovery Bay, CA · Member since 2016 · 44 posts · 13 votes
    9y

    @Phil Mcnally is on point. Review your rental agreement and follow explicitly what was agreed upon. Its easy to act on emotion but follow through whats allowed to you by law.

    1Reply
  • Kristina Heimstaedt
    Real Estate Agent · Newport Beach, CA · Member since 2017 · 259 posts · 293 votes
    9y

    @Richard Ladenberg Take it back to school days. It's easy to hate the teacher that's unforgiving and brutal. The teacher who gave you the second chance or clearly made the effort to help you was always the one that was more well liked. It can be done. Forgiveness is different from being a pushover. It's why I said that I suggest that you say that you look forward to this being the last conversation about late rent. I might even add that it will be an eviction notice next time. Throw them a bone though. I much rather have a tenant who will let me know when something is up rather than open the door after they've moved out and find that I've got 5k worth of work as a result of tenant negligence. An open line of communication is valuable in itself.

    0Reply
  • Richard Ladenberg
    OP
    walnut creek, CA · Member since 2017 · 13 posts · 5 votes
    9y

    @Kristina Heimstaedt

    They moved in 1 week ago... That's why I'm at a loss for what to do. I've had tenants that stayed for several months and then were late by a day or two, and that's forgivable. I'm flexible. I mean, I have a 4 day grace period in my lease. But this person moved in 1 week ago and is saying they won't make rent next week. I don't want to be shown as a pushover but I also don't want to be too much of a hardass going into it causing animosity because of the shared living arrangement.

    0Reply
  • Kristina Heimstaedt
    Real Estate Agent · Newport Beach, CA · Member since 2017 · 259 posts · 293 votes
    9y

    @Richard Ladenberg This is the beauty of real estate. It's your decision. It'll shake out just fine either way.

    0Reply
  • Frank Jiang
    Investor · San Diego, CA · Member since 2014 · 592 posts · 765 votes
    9y

    First, you will still begin the eviction process.  You will provide the tenant with a dated 'Pay or Quit' notice.  This basically says if the tenant does not pay rent within 'X' days, the landlord will begin the eviction process.  In CA, this is at standard 3 days.

    What I would do in your situation is give them this pay or quit notice and word it so that the due date of payment before the beginning of eviction procedures falls on the date that your tenant has promised to pay you.  Then, I would very gently tell the tenant that this paper is just a formality and that nothing will even happen if they pay rent as promised on the day they promised.  Explain to them that CA law means this letter would have been 3 days but you are extending this grace period to them as a courtesy just this once.

    This shows you are:

    1) Not heartless

    2) Strict with your lease

    3) Not an idiot

    It also allows you to begin real eviction proceedings immediately if this guy is a deadbeat.

    As others have stated, you must also enforce clauses on your lease relating to late fees, etc.  If they try to pay you less late fees, decline that payment.

    3Reply
  • Charles Kennedy
    Rental Property Investor · Philadelphia, PA · Member since 2015 · 213 posts · 160 votes
    9y

    I think if you are living with them, I'd be flexible. I think I would normally align myself with the other commenters saying you need to follow what's in the lease, but living with this person makes for a different (and more difficult situation). I'd charge them the late fee and suggest they handle your rent before other bills next month and you can't have this problem happen again.

    1Reply
  • Richard Ladenberg
    OP
    walnut creek, CA · Member since 2017 · 13 posts · 5 votes
    9y

    @Frank Jiang This is perfect. However this is in Georgia. There is no pay or quit notice required to file eviction for late payment.

    0Reply
  • Frank Jiang
    Investor · San Diego, CA · Member since 2014 · 592 posts · 765 votes
    9y

    Doh, assumed you were in CA because your profile says you're from Walnut Creek.  While a pay or quit isn't necessary to start eviction, I would still provide them one which spells out how much they owe in total rent and late fees.  The idea here is to use it as a tool to communicate with your tenant as opposed to actually needing it in eviction proceedings.

    0Reply
  • Josh McCullough
    Investor · Jackson, GA · Member since 2011 · 228 posts · 126 votes
    9y

    Don't worry about "animosity."  You are not doing the wrong thing by enforcing the terms.  They agreed to the terms, and you agreed to the terms.  

    0Reply
  • Bettina F.
    Investor · Post Falls, ID · Member since 2016 · 606 posts · 699 votes
    9y

    Always always always get one full month on move in.  Pro-rate the second month.  Then their rent would not be due for another three weeks.

    0Reply
  • Account Closed
    Investor · Columbus, OH · Member since 2016 · 139 posts · 136 votes
    9y

    I'll say it. 

    If you roll over, this tenant is going to stick it to you every month.  There's always going to be some sort of drama about why rent is late, or unpaid. It's not even like they've been paying on time for three months, and let you know they're going to be late this one time. 

    This person literally just came in to your place knowing they don't have the money to pay. 

    1Reply
  • Account Closed
    Investor · West Los Angeles, CA · Member since 2014 · 230 posts · 239 votes
    9y

    @Richard Ladenberg

    Maybe the tenant can text the car insurance company that their deductible will be paid on the 11th as he has rent due the first of the month.  Just sayin

    1Reply
  • Account Closed
    Investor · Columbus, OH · Member since 2016 · 139 posts · 136 votes
    9y

    @Account Closed

    There's a hierarchy of payments when it comes to low income people, and paying their mobile phone bill is always #1. 

    Rent is about 4th or 5th. 

    1Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    9y

    My lease allows tenants a three day grace period. So I can file for eviction on the 4th day of the month. However, I have found it very useful to have a more generous late policy in order to reduce turnover. 

    Under my late policy (Ohio) I will accept late rent with advance notice given without a quit or pay ONLY IF the tenant pays enough to stay current through the pay in full date. My policy permits up to 4 "small" lates per year (with notice), 3 lates in a row (with notice), and two quit or pays (with notice). With no partial payment I quit or pay on the 4th and file for eviction in three buisness days if not paid in full or according to the terms of a payment plan. Payment plans MUST BE PAID EXACTLY as agreed.

    In the case you described, For example, for $750 monthly rent /30days = $25/day. 25*11=275. I would require a payment of $275 before the end of the 3 day grace period in order for my tenants to avoid a quit or pay. If rent (and late fee) is not paid as agreed on the 11th I would then quit or pay on the 12th. If this is not possible, since the 11th is almost half way through the month, I would insist on a token payment and quit or pay the day after the token payment ran out and then file on the 12th if not paid in full.

    The policy allows me flexibility but protects me from larger losses because I get partial payment and/or quit and pay early. It also trains tenants to GIVE NOTICE and to DO EXACTLY WHAT THEY PROMISE if they go on a payment plan. My tenants seem to appreciate the flexibility and appreciate knowing in advance what will happen if some misfortune prevents them from paying the rent in full. In this case, I would tell the tenant, It's better for you if you can do a partial payment so you don't have to use one of your two quit or pays. Can you pay $275 on time? if not, I tell them okay, expect a quit or pay on the 7th-- this does not mean I really want you to move; I want you to pay. You have three business days after the 7th to pay in full plus late fees I'll wait the one extra day until the 11th but I'll file eviction on the 12th if not paid in full. This has been really useful for "C" properties where tenants sometimes struggle to get work hours during slow seasons; I have found that tenants tend to "save" their late allowances for actual emergencies.

    1Reply
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