What to do with new tenant who submits rent past agreed due date?

[Mark Belenky]

I have a new tenant of two months and as of now has submitted rent payment past the due date of the 1st of the month but, prior to the official "late date" of the 5th.  We're definitely not off to a good start but, I do understand that getting settled in can take more time for some more so than others.

Can anyone share their thoughts on how to best deal with this?

[Juan Vasquez]

@Nolan M. How much is the late fee usually?

[Janice M Fisk]

@Mark Belenky...Honestly I'm new in here and may be useless to you, but you said the tenant IS paying before the actual grace period is over?.....If that's the case, maybe he just gets paid during the grace period.

[Janice M Fisk]

@Gerald Randall...I agree with you

[Account Closed]

If you wanted it "hard core" by the 1st, you should have made the due date on the prior 25th.  You caused this.

[Connie Chan]

@Mark Belenky Hi Mark, it’s unfortunate to start off the lease like that but it’s possible it was a one time mistake. I would see if the tenant had an explanation and then try to create better processes to help prevent it from happening. For example you can remind them of the rental due date and then offer to accept rent electronically with a system that allows for AutoPay for example. I use the Tellus app but there are other options as well. Software helps remind tenants before rent is due and the AutoPay or one click payment helps them pay more on time. They won’t have to be near a bank or have to find a stamp and envelope or anything. My tenants have been paying a LOT more on time ever since I made the switch.

[Joe Schmitt]

I use an online rent collection platform (Cozy) and my lease says that tenants must us the platform. They sign up for a recurring debits, and my late fee is automatically applied if rent is paid on the 6th or later. I also have a clause that says there is a $25 surcharge for checks, and checks “Lost in the mail” are no excuse and will be considered late if not received by the 6th.

[Dominik Makaneole]

@Anthony Wick no doubt and its very easy to figure out.  When I first started this google wasn't a thing yet. lol

[Kenny Dahill]

@Anthony Wick, I don't think you have anything to freak out over but keep your eyes on when they pay rent.  If paid a few days past, it won't kill you.

With that said, be prepared to take immediately Late Notice action.  Mail their notices first thing on the 6th morning and don't allow exceptions.  Remember that it is always your discretion to apply late fees or not, but if you don't take the minimum actions to protect yourself then it could cost you more if you go to court.  That's why immediately sending Late Notices and Eviction Notices are important.

[Ethan Bazarganfard]

Give em a warning, and if they continue to pay late, then give them some sort of punishment, i.e. late fee. Maybe ask if they need their rent payment date changed, there may be a reason that they pay late consistently. 

[Mark Belenky]

Just a follow up:

I do have a 5 day grace period where payment after the 5th of the calendar month a $25 late fee would be added along with an added daily $5 fee for each day payment hasn't been made there after along with an 18% Interest per annum. 

On the 6th day of no payment first thing in the morning, I had sent a "Friendly Reminder" email  to the tenant reminding them of the lease agreement referencing the payment and late fee section.  I received a response with an "oops" saw that they had initiated a payment through my online Cozy.co property management app.

Thanks everyone for sharing  your insight with me and the rest of the community!!

Happy Landlording :-)