I recently purchased a duplex with 1 long term tenant, 1 shorter term. It's in a recovering area and rents are reasonable. Our short term tenant had a third party paying their rent before, but this is the first month they are on their own for rent. They are late and now past the grace period allotted by the lease. In Michigan, they need to be given a 'Notice to Quit' good for 7 days before proceeding with a court order. How long is a reasonable amount of time before beginning the eviction process?
If you haven't already done so I would send the required notice.
I would also ask the tenant what day they plan on paying the rent plus late fee. If the time is reasonable and they do what they say then I allow it.
If the time is unreasonable or they don't do what they say then I immediately start the eviction.
I try and train them early that their are consequences for not paying on time. The start paying on time or they get evicted.
Don't wait too long to start the eviction.
Also in SC it only costs me $40 to file an eviction so it doesn't break the bank.
I agree with @John Underwood. Lay out expectations for the tenant. If they give you a date they will be caught up and this date goes by, start the eviction process. In my experience(42 SFRs), 95% of the time if tenant falls behind one month they will never get caught up. Most of my tenants live pay check to paycheck and I believe this is the case with most tenants.
@Matthew Tanis send the notice to quit right away. Hopefully that is enough to get them to pay and, if they don't, it helps you get started on the eviction process as soon as possible (if necessary). I agree with what others here said, you want to send the message that this is a business and there are certain expectations and consequences if not followed. Good luck!
In California, we automate the process to start the minute their payment passes the 5 day grace period and proceed with a 3 day notice. If this occurs, and the tenant wants to get their account in good standing, they must pay the late fee as well as any and all legal fees associated with the late payment.
In our experience, this has significantly reduced late rent, and it gives the tenant the feel of a very rigid structure that will be less interested in pushing in the future.
When we have bent on this in the past, it seemed to have created a never ending problem of late rent payment and our management company always begging for rent.
If they don't actually want to pay the rent, then starting that eviction ASAP will save you a ton of money and rent loss. For those two reasons we serve them immediately!
Thanks for all the information. We went ahead and sent the notice to quit after the 5 day grace period. Then heard nothing. We were in the process of proceeding and I tried a last ditch text message and now are in good standing. I anticipate this won't be the last issue from them and will be ready next month as well. Lesson learned.
I simply do a rent is due on the first late by the 4th. A 3 day notice goes out on the 2nd and gets there by the 4th. This gets the eviction timeline moved to immediately start after the late period ends. Otherwise you aren’t starting the process until the 7th day.
What people fail to realize is the grace period isn’t moving the payment date. It’s simply a time period where the LL has not applied a penalty fee. But the rent itself is late anytime it isn’t paid by the due date.
I have a buddy who has no grace period. Rent is due on the 1st by close of business. Unless the 1st is on a weekend then it’s not due till the next business day by 5pm. He has no grace period.