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.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
7y
Have you asked them what it'll take? Not when are they going to pay but HOW can you both work together to get rent paid on time.
I had an inherited tenant and they paid late often but they still paid. The late fee was low like 5 dollars etc and was just a headache. So come renewal time I gave them some questions to fill out....
Long story short I changed them to 1&15 to match their pay. I also reduced the grace period and increased the late fees. It took a little time to adjust but now it's great. Rents paid on time more times then not. Often it's even paid early by a few days.
Now does this work with everyone, nope. It's also more headache but could be worth it if you adjusted your rate to make up for it. Even weekly could be an option and boost your rent up, but that's more work then I'd want to deal with.
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.
Have they EVER missed a payment - even if it was late?
If not, keep after them about the lateness, but don't let it consume you.
If so, take what ever steps are available to get them out.
You can get your undies in a bunch or do what it takes to take care of business.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
7y
@Martin Neal I have a late policy that punishes severely failure to notify and is extremely forgiving on minor lateness. In fact, I don't even charge a late fee if a tenant notifies me in writing by text on or before the 1st of the month telling me what day they will pay on or before the 7th.
Professional · Parsippany, NJ · Member since 2013 · 384 posts · 262 votes
7y
I am not sure about laws and procedures in your area but I do know that Illinois and NJ laws are similar Tenant friendly states. I had this issue with a Section 8 tenant (which is even more complicated) and heard all the nonsense month after month about her drama, sons drama, baby father drama etc etc. I sent her a late notice and my attorney sent her and her Section 8 Caseworker (required for Section 8 Eviction) a "Notice of Habitual Late Payments" which is a violation of the lease and could lead to eviction. This was back in February and she has been on time paying every month since then (thank god)
@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.
Weigh your options. I wouldn't evict because she does pay in full and keeps the place clean. I would talk to her about late fees and if there is a problem. Its frustrating but could be worse.
When I went to NYC housing court for an eviction and money collection the judge asked me "Doesn't the mortgage allow you to pay up to 15 days past the due date....Well, afford that same window to your tenants".
I don't agree with the judge but NY is mega tenant friendly. Like I said..you do get your money..talk to her.
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.
If they have never missed a payment, but are always late & pay the late fee, I would ask a tenant that keeps my place "nice and neat" if there's a better day of the month for them to make their payment so they're not always paying a late fee. Be the magnanimous landlord helping your tenant avoid spending extra money on late fees. Let them know that they are a great tenant but you're asking this question because their next landlord may call you for a referral and you'd like to say that they always paid on time. If that doesn't work and they continue to pay every month, but just late, just bank the late fee. As long as they are keeping your place "nice and neat"
Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
7y
Another consideration. Do you mind collecting late fees? To me that is just another profit center. An eviction costs money. Plus you need to add in the down time for the unit. So what do you prefer another $35.00 a month cash flow or are you convinced of your righteousnrdd to the point you are willing to spend $2,500 or so to put them out.
Since they are month to month you could consider rasing the late fee. Within the framework allowed by law in your state of course. Call your LegalShield attorney and get that question answered. Don't have a LegalShield attorney then call me and get one.
Investor · Kearny, NJ · Member since 2016 · 38 posts · 14 votes
7y
@Martin Neal
I'm experiencing something similar but, were locked in for another 9 months.
Consider the following:
When will the unit be rent ready for the new tenant.
By the time the unit is rent ready, is it a good time of year to find a new tenant or is it a time of year where but too many people are moving (typically the holiday season) which could leave your unit vacant longer than if you were to have it ready in the spring.
I posted something similar and a general response that I got back from the community was that the majority of the tenants typically pay at the last possible minute allowed by the lease. If you provide a grave period, they'll leverage it.
Since you're on a month to month, you have the ability to set the terms within the regulations of your state. Best thing to do is to communicate with your tenant. Maybe the 1st of the month doesn't align with when they get their paychecks. Maybe telling the tenant that you've noticed that they've been missing the due date and if changing the rent due date to something that works for them will help them meet their obligations.
Flipper/Rehabber · Member since 2019 · 61 posts · 22 votes
7y
@Martin Neal
What would your your mortgage lender say if you are late they wouldn't put up with that so why are you second I would get a property manager ASAP I would distance myself from your tenants as quickly as possible in a reliable and dependable people you'll get that with a property manager with better screening and vetting
Investor · Chattanooga, TN · Member since 2016 · 676 posts · 543 votes
7y
@Martin Neal my rule is if I wonder if I should move forward with eviction then I probably should move forward with it. There are exceptions of course but in general if some one is annoying you you need to fix the issue. Which might be a stern talk but likely means it's time for a new tenant
Rental Property Investor · Big Sandy, TN · Member since 2013 · 147 posts · 91 votes
7y
@Martin Neal
I would consider a system like online management. It takes the personal confrontation out of the picture. I offer online payment options using check or credit card options. The credit fee is a surcharge paid by them. Late fees are automatic. I setup a reminder 3 days before the first. They can use auto pay. Statements are also on auto. I chose buildium but most all have same features. Sometimes encouraging even partial payments with a percent based late fee helps both parties.
Evictions can be very long and expensive but there is still a time to cut them off.
Property Manager · Summerville, SC · Member since 2019 · 4 posts · 2 votes
7y
@Martin Neal Hello sir! Here is my 2 cents. For me, I always folloe the goals of the owner. My Luxury multi unit community budgets for late rent as additional revenue. But if they are not worth the additional income (they may not be) send a 30 day non-renewal.
Rental Property Investor · Buffalo, MN · Member since 2010 · 511 posts · 92 votes
7y
Follow the lease, look at your demand in that neighborhood, is rent priced right. If that is only issue might be something to work on with tenant, but keep them month to month in case eviction is needed. Keep on them every time their late, force the late fee when late.
Contractor · Oxford, MA · Member since 2018 · 807 posts · 745 votes
7y
@Martin Neal bump your late fee until they stop doing it. If $35 every month isn't an issue then there is no point in having the penalty in there in the first place. Push it to 10% of the rent and you will get 1 of 2 things happening. #1. You just started making 10% of rent that goes straight to profit (minus gas money) #2. They leave or you evict them. You either fix the problem or you're back to square 1 and there is no harm to you or the business