NICE TENANT BUT ALWAYS LATE OR BEHIND RENT PAYMENT

Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes

How would you handle a type of Tenant that keeps your property nice and clean, treats the Landlord with all deserved respect, but is always behind on Rent?

6 Reply

172 views

Most Popular Reply

Terrell Garren

Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes

... keeps your property nice and clean, treats the Landlord with all deserved respect...

Let the late fees roll and love life.

38 Reply

See this reply in the discussion

87 Replies

Jump to latestLatest

Sort by

Terrell Garren
Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
6y
... keeps your property nice and clean, treats the Landlord with all deserved respect...
Let the late fees roll and love life.
38 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
I would non renew eventually .. in the meantime collect late fees
2 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Hahah! I know, Terrell.
0 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Thats a good idea.But when i think about the cost of the turn over ....hahah!
3 Reply
Andrew Roberts
Whitsett, NC · Member since 2015 · 4 posts · 7 votes
6y
LOL I’m with Terrell!
Dancing the money dance all the way to the bank!!!
Paid rent! check!
Paid late! Double check!
6 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
HAHAAHH!!
0 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
People that "dance all the way to the bank" may end up slinking back to the bank for a withdrawal when their tenant fails to pay the last month's rent, abandons the unit, or trashes the unit.
It's bad practice. You may get lucky and have a lazy tenant that pays late every month but always pays and always pays the late fee. The more likely scenario is that they will eventually cost you more than what you gained with late fees. Of course, I only have 11 years of experience with hundreds of rentals so maybe these guys know something I don't.
If you let them pay late, you are training them to ignore any other rules you establish. Get them on track or get rid of them before you come to regret it.
The DIY Landlord Book4.7248 Reviews
Website View Page
29 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y
Charge them late fees. that depends on how late they are (days vs weeks). Once they get behind, it can be hard for them to catch up.
1 Reply
Bob Prisco
Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
6y
@Charles Ngansop how far behind, days weeks or months? If months, evict, if weeks , deal with it or spend 1ks and 1ks to get the place rent ready again....
1 Reply
Aaron Poling
Realtor · WV · Member since 2018 · 454 posts · 310 votes
6y
I would suggest speaking to the tenant about it. Let them know very nicely that they like them as a tenant, but rent needs paid on time. Try and put them on a plan to catch up.
Also, when the lease is over if you decide to keep them raise the rent, but give a discount if paid on time. This should be a motivator.
Good Luck!
4 Reply
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
6y
Half of my tenants are about a week late. And I don’t charge late fees most of the time. They all have excuses and live their lives pay check to paycheck. Almost all are lifers as far as renting. As long as I get paid by the 15th then I’m ok. I’m not living pay check to pay check so I can survive. None want to leave because they know they might not find landlords elsewhere as flexible. If they are a month late, then I evict. But I’ve only had to do that one time so far. So I’m ok with rent coming in at random times every month. No big deal.
14 Reply
Todd Powell
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
6y
@Charles Ngansop. Depends on how past dues as I have one tenant that is days late but is fine paying me the late fee. I think it depends and some on BP will argue serve them the first day they fall out of grace, but I take a different approach if they are a solid tenant all the way around. The key is how late are they and does this cause you stress?
3 Reply
Natalie Schanne
Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Charles Ngansop - I don’t know about your luck. I have a hard time getting late fees paid. I’ll first send a text saying I didn’t receive it and reminding them of the late fee. On 2nd, “I didn’t see your direct deposit yet. Please include your $50 + $10/day after today late fee with your payment deposit. My mortgage is due on the fifth. Thanks.” Or whatever. If I don’t get it by 5th I’ll file for eviction. Every time I’ve waited to file I’ve regretted it.
My smart friend Marc Halpern of parttimeinvestors likes to train his tenants to be good tenants. If they have trouble budgeting, He will call them or stop by and agree to change the rent from once a month to every two weeks on their payday. I’m not sure if he charges any fee for this such as they pay him 1/2 month rent every two weeks so he ends up with an extra payment or two at the end of the year. I like his idea because then they pay you out of each paycheck before spending on their other bills. I think the ideal would be an ACH auto withdrawal every two weeks. I assume that most renters are worse at budgeting than homeowners. Excuses are low. There’s a lot of work available for people who need money. I’m constantly surprised by anyone saying they don’t have $$. You can get paid $20-30/hr in most areas for anything from cleaning to tutoring to pet/baby sitting to food delivery. It requires you to choose not to be unproductive with your spare time. (IMO you don’t deserve to Netflix and chill if you haven’t paid rent).
4 Reply
Patrick Strain
Member since 2018 · 61 posts · 22 votes
6y
Originally posted by @Terrell Garren:
... keeps your property nice and clean, treats the Landlord with all deserved respect...
Let the late fees roll and love life.

Agree, 100%, as long as they pay within the month. I had a single family house that I was renting to a professional couple. They were late four or five times per year, but always paid the $100 late fee. That's just money in my pocket. If they mistreated my property, or had a serious lapse in payment (several months), things would be different.
0 Reply
Justin Sullivan
Real Estate Agent · Phoenix, AZ · Member since 2019 · 158 posts · 140 votes
6y
That’s a difficult situation. I know someone who owned a house but lost it so they had to start renting. So they still had an owners mentality with pride of ownership. They treated their rental as if it was their own. Never called the landlord for issues. Built a shed in the back yard. Fix the AC unit several time by paying repairman. Built a screened in front porch. He was all in all acting like it was his home. The issue was he was late most months. Not by weeks but by days. He would pay his late fee and continue to go about his life. He lived in that house for 20 years. After he moved the owner sold the house and walked away having an easy 20 years of rental payment with having to do nothing but cash the check. The owner did replace the roof and update the windows. Windows were at material cost because the renter and family installed them. That tenant served to be what I think is a great tenant and the owner gave him some lenience due to years of him being there. Might I also add it was a month to month lease.
Yes something like this isn’t common but it’s out there. You have to gauge your tenant. Depending on Their pride of ownership and how long you think they may stay. I can’t speak for them whether they will trash the place or not or just skip out on last month rent. Your the only one that can decide that. Everyone else situation is different. Some say run with it others say get rid of them but they base it off of their personal experiences. Base this off of your experience with them. Judge their character and make your decision that way. They might just be the unicorn who pays late takes care of the place and will stay for years to come, you never know!!
2 Reply
Marcello I.
Rental Property Investor · Long Island, NY · Member since 2019 · 20 posts · 13 votes
6y
I had the same issue before I switched to an online payment platform which automatically applies a late fee after 5 days. Not sure what the laws are in your neck of the woods but I am in New York and my late fee aligns with state law.
I like that the online platform automatically applies the late fee because it makes it a little less personal than a text or verbal exchange.
1 Reply
Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
6y
@Charles Ngansop
Charge late fees. Terminate lease. Evict. Get them out. Nothing else matters if they aren’t paying rent. Nothing.
0 Reply
Jerry Lucker
Flipper/Rehabber · Seattle, WA · Member since 2015 · 333 posts · 459 votes
6y
@Charles Ngansop
Always stick to the terms of the lease. If he wants to pay late fees - great! The return on your modest investment for a few days is going to show a good profit.
He’s no greater risk of trashing the place than someone that pays on time.
I base that on my many years of being a landlord.
2 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Nathan,thanks for the feedback. Tenant has received numerous warnings on paying late, but at some point, landlord do not want to be alarming and cause tenant to leave.
0 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Tenant is 2 weeks behind. From paying on the 1st tenant now pays on the 15th
0 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Thats wonderful, Walter.Thanks alot
1 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
John, you must be the only NICE landlord out there. Hahaha! But seriously, you made a very good point.Most folks live paycheck to pay check especially in a low income neighborhood where having a good tenant can be very difficult.
Thanks John for the input
0 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Todd, tenant is 2 week behind and has been that way for 6 months
0 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Totally agrees, Natalie.Thanks for the insights
0 Reply
Joe Martella
Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
6y
@Nathan G. I agree with you. I currently have a tenant that is usually a week late. They are living paycheck to paycheck. They are respectful and take care of the property - which I think is worth more than a $50 monthly late fee.
They have lived there for over a year. Is the $600 in late fees worth losing a tenant that takes care of the property? There is already cash flow. I think that if they are respectful you return the favor. The tenants that are living paycheck to paycheck know you can charge them a fee and I am sure they appreciate it. I rather they save the $600 a year and spend it to take care of their family and property. I look at it as reinvesting in my property through my tenants attitude towards me and the property.
If the extra $50 a month is going to make or break you then you didn’t do your numbers correctly when you purchased the property. Don’t be greedy. Not all tenants are evil. Use discretion when you can.
6 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.