Dealing with delinquent Tenants

4 Replies

Right now I'm managing about 85 units and am trying to get more of a "company policy" in place so that I can streamline my business.  If the tenant is not paying rent, when do you guys send out Notice of Default letters stating they have 30 days to vacate? What actions do you take to for tenants who are continually late and don't care about paying late fees?

Thanks,

Luke Jackson 

Hey Luke! I send notices on the 2nd each month, as I have a strict policy that rent is due on the 1st (unless the 1st falls on a weekend or a holiday, then it's due the following business day). I then file on them ten days later if the payment has not been received. If a tenant is consistently late, but doesn't mind paying the late fees, I certainly don't mind, as I collect the full late fee each month plus the full rental amount. As long as they keep paying before you file/before the court date, there's not much you can do, but at least they're paying! 

The amount of days can be different for each state but bottom line is put a system in place and don't deal with those tenants. When they are late we sent a Pay or Quit notice, when that time expires and they haven't paid, we send everything to our attorney for eviction. Simple as that, and I know that system will work in MN as well as AZ because I own rentals in MN and I've used the same process there that I use here in AZ.

Rent due on the 1st, late fee of 8% of rent assessed on the 5th if payment hasn't been received.  On the 5th I send out a letter stating rent is late and to include the fee.  Only had to give out a notice to comply or quit once and it was clear they were leaving so I gave it right away.  I also gave them a notice letting them know they can't use their security deposit for payment of rent.  I believe this is an important step in the process as their attorney asked that I withdraw the notice which I refused to. 

Only bad tenant I had was inherited, rented for 2 months, left not paying the last month so I ate their deposit.  We planned to improve their unit and up rent anyhow so the timing worked out well turning over the unit.

Check your state law. My state requires a 3-day grace period before we can apply late fees or start eviction.

I require rent on the first, charge a late fee on the 5th, and file 3-day Pay or Quit on the 10th. Once the 3-day is finished, I file for the forcible entry and detainer (eviction).