Rental Property Investor · Chicago, IL · Member since 2017 · 293 posts · 383 votes
I’ve had a tenant in place now for 6 months and they have only paid once on the 1st. They have technically been late every other time. 3 times they paid after the 5th which is when a late fee is applied by state law. This tenant is on a month to month lease so I’m thinking is time for them to go. How many more times should I put up with them being late with their rent?? They rarely communicate and when they do, it’s to lie about when the rent going to be paid or something needs to be fix. Everyone else tells me that it’s not going to get better so I should just issue a 30 day notice now. What do you think?? They keep the location nice and neat but I’m sure i can find someone who is less of a headache. Thanks for your advice in advance.
What does your lease say about late fees? I would gladly take an extra $25 or whatever (if they pay it) for them being a few days late. If they are paying on the 10th or NOT paying the late fees, I would serve them notice. If they keep telling you something needs to be fixed when you call about the rent, they are just throwing up smoke screens.
Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes
7y
This is just my opinion and I don't have many properties like others do. Me personally I would start looking for new tenants. Since they are on month to month that helps. Maybe give them a heads up about you looking for new tenants. You can keep them in until you find another one or just give them 30 days and hope you can find someone right away.
What does your lease say about late fees? I would gladly take an extra $25 or whatever (if they pay it) for them being a few days late. If they are paying on the 10th or NOT paying the late fees, I would serve them notice. If they keep telling you something needs to be fixed when you call about the rent, they are just throwing up smoke screens.
I’ve had a tenant in place now for 6 months and they have only paid once on the 1st. They have technically been late every other time. 3 times they paid after the 5th which is when a late fee is applied by state law. This tenant is on a month to month lease so I’m thinking is time for them to go. How many more times should I put up with them being late with their rent?? They rarely communicate and when they do, it’s to lie about when the rent going to be paid or something needs to be fix. Everyone else tells me that it’s not going to get better so I should just issue a 30 day notice now. What do you think?? They keep the location nice and neat but I’m sure i can find someone who is less of a headache. Thanks for your advice in advance.
So the eviction process in Cook County is exceptionally arduous, as such disregard the advice of folks from out of state who suggest you immediately move to evict. HOWEVER, it sounds like [as the since disappeared Thomas S. would say] you need to retrain your tenant. Any time my tenants are late, that is a discussion we have about how that's not acceptable. If they bring up maintenance issues, I first inquire why those were not brought up prior to the rent due date. I then explain that regardless, per city ordinance they cannot simply not pay their rent, the rent is one issue, maintenance is another.
One line I commonly throw out is, "Ok, so you are telling me the unit is uninhabitable in its current condition as you are unwilling to pay your rent? Its completely vacated, so I can draw up the lease termination amendment effective today?" To which they normally reply, "No no no, I just need xyz fixed and I'll get the rent deposited." Reply: "Ok, I've submitted the maintenance ticket, but that's distinct from your rent. When will your past due balance be resolved, because on xx/xx/xxx I'll have to turn your file over to our attorney and then it'll be out of my hands. We need this balance corrected asap."
Also, for certain class properties, you have to realize folks live paycheck-to-paycheck, so if rent is due on Tuesday you aren't going to get paid until Saturday as the tenant gets paid on Friday after work. Or the next week.
Los Angeles, CA · Member since 2019 · 512 posts · 301 votes
7y
@Martin Neal is it worth turning the property over and losing revenue to find a better tenant who is less of a headache? Maybe.
Owning a business can seem like a science but it’s more of an art.
It’s up to you! What are your standards and what is your time worth? What are you willing to put up with?
Yet again the devil you know may be better then the devil you don’t.
I’m pretty sure my advice is vague and not helpful but I’d lean towards keeping them and collect the late fees. I would also review their original application and see what might have been overlooked or if they are high risk for not paying at all.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
7y
@Martin Neal The tough part is that even though you give them a 30 day notice doesn't mean they will just comply and vacate. What if they stay and continue to pay, are you willing to go down the road to an eviction at that point?
It can be very difficult to evict a tenant for lapse of time and for any other reason other than non payment. Just something to consider.
Rental Property Investor · Chicago, IL · Member since 2017 · 293 posts · 383 votes
7y
@Constancia Russell the lease says I can’t charge a late fee until after the 5th. The late fee is $35. At first, they did not pay it and I told them they needed to pay it or find someplace else to stay. They have paid it all three times since. I am self-managing and I find it a waste to drive to the property on the 6th every month to put this notice on the door.
Rental Property Investor · Chicago, IL · Member since 2017 · 293 posts · 383 votes
7y
@Matthew Olszak Let me clarify: The tenant communication skills are poor. They only call to tell me when something needs to be fixed. It has never been “I will pay when you fix”. My preference would be if they know they are going to be late, then they should call or text advising so. They never do. I find myself calling them looking for answers. They will either not pick up my calls or say they will pay tomorrow but don’t pay for 5 more days.
Rental Property Investor · Chicago, IL · Member since 2017 · 293 posts · 383 votes
7y
@Jonathan Watt thanks. I did review their application again and found I missed things that did not show up during the first screening. They have been in eviction court twice. I would say they are a higher risk tenant based on that. That worries me too.
San Antonio, TX · Member since 2019 · 930 posts · 836 votes
7y
@Martin Neal
If it was just them paying a few days late I think it wouldn’t be too bad (assuming they are also paying the late fee), but the lying and lack of communication to me is a bigger issue that would have me looking for a new tenant.
Rental Property Investor · Chicago, IL · Member since 2017 · 293 posts · 383 votes
7y
@Kris L. Yes, it’s paying a few days late. I explain it like this to all my tenants: “Rent is due on the 1st, late on the 2nd. A late fee will be assessed after the 5th.” By law, I can’t issue a five day notice until after the 5th and can’t file for eviction until after the 11th. They have always paid before the 12th.
@Martin Neal I think you know what you need to do. Have a talk with them and explain that if they are having problems paying the rent, they need to find a cheaper place to live. Give them a list of options (nothing that you own) and tell them you will talk to them next month and see what they'd decided to do. If they don't make the right choice (ie give notice), then tell them you are giving them notice. You could offer then a couple of hundred dollars to get them to move-do NOT pay it until they are out and you inspect the property.
Real Estate Agent · Forest Park, IL · Member since 2014 · 255 posts · 141 votes
7y
I'm sure you know in Cook County that evictions can be a six month process. Not only is that lost rent, but court, sheriff, attorney fees, etc. With their eviction history and your poor experience, they will likely have a very hard time moving on a 30 day notice which in turn will likely result in the eviction process.
I have a two page reference list I hand out to tenants routing them to side gigs as a way to supplement their income (at least temporarily). There are even options for people who don't have cars. Feel free to PM for this.
You could give notice a few months to terminate the lease (rather than 30 days), giving them extra time before the last resort of eviction.
You could give them notice of a rental increase to cover your cost of increased management. Offer to reduce the rent if they are on track for several months. It might make them get back into line.
I see you live in Cook County, but if your rental is outside Cook County, you may be able to provide service/notice by mail or other ways than to the person. This may need to be specified in your lease as well. Consult your attorney.
@Kris L. Yes, it’s paying a few days late. I explain it like this to all my tenants: “Rent is due on the 1st, late on the 2nd. A late fee will be assessed after the 5th.” By law, I can’t issue a five day notice until after the 5th and can’t file for eviction until after the 11th. They have always paid before the 12th.
I have issued notices on the 1st of the month when rent has not been paid. The rent was unpaid when due, you can start notices then. Again, consult your eviction attorney. Feel free to PM for a referral for Cook County.
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
7y
Are you in an area where the quality tenant pool is good? You need to keep that in mind because the grass isn't always greener with someone new. You know already what you have. Although, a few days late you are getting the rent. If this is the only issue with them id speak to them about the importance of on-time payments, late payments and penalties.
Rental Property Investor · San Diego, CA · Member since 2019 · 35 posts · 15 votes
7y
I wouldn’t be so quick to try to evict these tenants. You said they are keeping the house clean, that is a huge positive. It sounds like you are getting the rent pretty consistently, albeit late. I would collect that extra $35 per month, until the first time they pay later than the 11th. This is just how some people deal with their finances and responsibilities. They have until the 11th until you can start evicting, so in their mind, that is when they need to pay it. If $35 isn’t worth the small hassle, then you now know you need to increase you’re late fee. If this is all too much of a hassle for you, then consider a PM.
Focus on re-training these tenants if you need to. Sometimes the extra cash flow of a late fee is nice, if the tenants are consistent and otherwise good.
Rental Property Investor · Atlanta · Member since 2019 · 23 posts · 27 votes
7y
The issue here is the poor communication and thier past history. These are almost certain to end in eviction. Why wait until they get to the point where they don't pay at all. When I've had renters like this I've sent a 60 day termination notice. Ga requires 60 days on a month to month but, you can provide longer if you believe that will help you avoid eviction.
I've never had any luck correcting this behavior. I've sent warning letters stating they will be terminated if late again, charged late fees and even filed eviction. It always ends the same. Eventually they stop paying all together. Pay to quit letters only work on people who regularly pay on time anyway. You can't change people and how they manage thier money.
My advice: terminate the tenancy with reasonable and legal notice and screen future tenants better.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
7y
I don’t mind a late tenant that pays my $40 late fee and keeps the place nice. I have found through experience, all tenants lie. If the lateness gets out of hand, then I file for eviction, I use a Pennsylvania Association of Realtors lease, once they sign, they waive their right to an eviction notice. I just file, no notice.
Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
7y
I was in exactly your situation. Rent always late by 5-10 days (a few times even longer), but always paid. Every month I had to nag and ask about it, with my first text being ignored half the time. Was often rude and had a temper. I finally got fed up and issued a 30-Day Notice to Vacate, actually I served it mid-month to be out by the end of the next month, so she got 6 weeks. Should have done it months earlier! Of course, she didn't comply with it. And I still had to evict her.
However, caveat, this rental is in a landlord-friendly area.
Rental Property Investor · Copperas Cove, TX · Member since 2016 · 38 posts · 23 votes
7y
@Martin Neal
It is in my Rental Agreement: Rent is due on or before the first day of the month. If not payed, on second day of the month,, the door is posted with a 3 day notice. At this time a late charge is accessed of at 10% of rent due. On the 5th of the month If I have not received rent and late fee I file for eviction.
My tenants sign this and agree to policy in the rental agreement. I have only had to exercise this maybe six times in the past 20 years, I have lost some tenants because of this provision. It has been my experience to expect what ever you allow.
Rental Property Investor · Chicago, IL · Member since 2017 · 293 posts · 383 votes
7y
@Anthony Rosa I would describe the area as a Class C area. When I think about it, it is currently the only issue I have with her. The property is in the same condition as when I rehabbed it six months ago so she is taking care of the place. Rarely calls for anything, I haven’t heard from the neighbors.
Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
7y
Your $35 Late Fee is not enough incentive to persuade them to pay on time. My leases state that "rent is due on the first of the month. If not received by the fifth of the month, they must pay a $100 Late fee. If not received by the tenth, file for eviction."
For habitually late payers, send them a notice to cease.