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?

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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.

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Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Thanks Justin for the input
0 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
What online payment are you using, Marcello?
3 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Yeah, Joe, i appreciate the wise man input."Not all tenants are evil", indeed
0 Reply
Justin B.
Rental Property Investor · Franklin Lakes, NJ · Member since 2018 · 38 posts · 13 votes
6y
@Joe Martella I do the same thing usually let it slide and make sure it’s not a pattern forming , a few times in one year that’s only 6 days late no biggie . Why be on bad terms over a few days If the place isn’t being trashed.
0 Reply
Anthony Rosa
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
6y
I'd say, make their rent on the 15th instead of the 1st but don't let them know. Speak about it to them nicely, her their story. It may work to your benefit (money always in the bank, lol). A good tenant and does pay plus keeps the place nice and clean..Ya, okay get rid of the tenant, throw the dice and you may come up with just the opposite. I wouldn't stress it with eviction or late fee because it isn't worth it, in NY anyway, and why take the chance with ruining a good thing. Maybe i'm saying this because i always received payments even if 1 or 2 weeks late on occasion but never enough to even consider a late fee. Judges in NY will have no problems telling landlords "When does your mortgage late fees kick in??..You have a 15 day post marked grace period with late fees so extend it to the tenant....Next case".
3 Reply
David Vander PolPro Member
Union City, CA · Member since 2017 · 50 posts · 12 votes
6y
@Natalie Schanne "IMO you don’t deserve to Netflix and chill if you haven’t paid rent."
Excellent point. I completely agree with you and I'm using that quote in the future!

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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
6y
When tenants get way behind they can't catch up. Charge the late fee then I would bring them back in line with the due date. I would have a conversation with them asking when they will start paying on the first again. Bring up the possibility of non-renewal if they can't get on track. Issue pay or quit notices as needed. If it was 3 or 4 days it could be the due date and the paychecks don't align well but 2 weeks coming up on the holidays now, you are gonna see an issue. One caveat if the late fee is the same on the 5th and the 15th there is no incentive to pay on the 5th so you better let them know it is jepordizing their tenancy.
1 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Anthony, they pay late all the time, but pay anyway.
0 Reply
Marcello I.
Rental Property Investor · Long Island, NY · Member since 2019 · 20 posts · 13 votes
6y
@Charles Ngansop I’ve been using Cozy which is free. My only complaint with it is the free transfer to my checking is a little slow but other than that it has worked out well for me. There is an option to expedite a transfer for a small fee.
2 Reply
Michael Pintarich
Rental Property Investor · New Bern, NC · Member since 2019 · 1 post · 1 vote
6y
I once had an issue with the tenant missing an entire payment while I was on deployment. First, I verified the rules on the signed lease, and reviewed the most updated state laws for late fees/ missing payments. Second, I called the tenant and tactfully, but sternly, explained the repercussions of the fees accrued and that any unpaid balances would be compounded. Lastly, generated a formal a memorandum, which the tenant signed, that captured this event and voided once all fees and rent were paid. Seems like a lot and militarized, but it was effective. I hope this finds you well.
1 Reply
Ron Fletcher
Leclaire, IA · Member since 2016 · 161 posts · 130 votes
6y
@John Morgan
Why on earth would you not charge a late fee? You’re leaving money on the table.
0 Reply
Ozzy SirimsiBusiness Member
Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
6y
@Charles Ngansop
It think it depends on the situation.
Does she have a solid job ?
How long is that lease?
How long is she planning to stay?
How easy it is to replace the tenant?
and how is your financial
situation....
There are a lot people ready to send "failure to pay rent" notice the second they are late.
I personally look at the situation.
I had tenant they paid late constantly, but stayed in the house for 3-4-5 years.
I could have replaced them and end up having vacancy, and losing the money anyway.
I think if she is fine overall, has a solid job, planning to stay and she has been in for a while, I collect the late fee and and let it go.
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John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
6y
Originally posted by @Ron Fletcher:
@John Morgan
Why on earth would you not charge a late fee? You’re leaving money on the table.

If my tenants are good, don’t bother me much for little things and only five days late, I don’t charge them late fees If I help them out once in awhile, I find they help me out. For example, I told my tenants I would buy them a new dishwasher At Home Depot since theirs went out last week. They just found a used one yesterday and installed it themselves and didn’t charge me a dime for it because I’ve been good to them. They also fixed two leaky sinks last year and didn’t charge me. Another tenant installed nice tile in the bathroom for free since I let them be late a couple times. I find if I scratch their backs, they scratch mine and it all works out in the end. Collecting fifty bucks isn’t going to make that much of a difference to me. But by letting them late by a couple extra days once in awhile makes me look like a hero to them, and they make up for it by taking care of my props and helping me out with free services. And they seem to be lifers not wanting to rent elsewhere because they know I don’t jump all over them for being a few days late. Just a different way than most do things. But it’s worked just fine for me and all my tenants seem happy and never complain about anything.

4 Reply
Jay S.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 44 posts · 9 votes
6y
@Charles Ngansop I would move the dates to whatever dates they are comfortable to pay with. Dates dont have to be always 1st or 15th of month. Good luck.
1 Reply
Quentin Mitchell
Investor · Chicago, IL · Member since 2016 · 197 posts · 105 votes
6y
It all boils down to the tenant, you know your tenant like no one else you know if they are lying their work situation and if it is constant than have a conversation with them to see if it is the date that is the problem, but communication is the key in any situation. If you have a tenant that takes care of the place and pays every month even though they are late it would be best to figure out a good compromise. Whatever decision you make, make sure you're basing it off of that particular tenant and not a general rule.
0 Reply
Gary L Wallman
Rental Property Investor · Beavercreek OH · Member since 2018 · 422 posts · 970 votes
6y
In my experience, you train the tenants or they train you. At 6 day late pay rent or quit notices go on door. 3 more days evictions are filed. I have a minimum of a hundred thousand dollar asset they get to live in. If they can't figure out how to pay the $995 rent on something I paid a 100k for, they have to go and go quickly.
2 Reply
Ben G.
Rental Property Investor · Will County, IL · Member since 2018 · 39 posts · 11 votes
6y
@Walter Aaron Poling I disagree with offering a discount on rent if it's paid on time. The incentive to paying on time should be avoiding a late fee and the possibility of not getting your lease renewed.
I charge my state's maximum late penalty (20% of monthly rent) which is meant to really sting if they're late. Hopefully the sting motivates them to pay on time.
1 Reply
Bill O'Donnell
Rental Property Investor · Newburgh, NY · Member since 2018 · 160 posts · 117 votes
6y
@Charles Ngansop
Cozy will do that for you.
0 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
6y
I just follow the lease. Send notices, charge late fees etc.
2 Reply
Al Pat
Rental Property Investor · Atlanta, GA · Member since 2016 · 325 posts · 253 votes
6y
@Charles Ngansop Paying late feed or not? If so then keep on collecting. If it gets past 30 days or they don’t call you to advise you of being late then send 3 days pay or quite notice. As long as they text you of them being late and adds late fees to rent, I wouldn’t sweat over it.
1 Reply
Michael Noto
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
6y
@Charles Ngansop In these situations the tenant will eventually get themselves so far behind that they can't catch up. It is inevitable. Could happen next month or 3 years from now, the tricky part is there is no way to know when it will happen.
1 Reply
Al Pat
Rental Property Investor · Atlanta, GA · Member since 2016 · 325 posts · 253 votes
6y
@Dennis M. Why wouldn’t you? I have a tenant who pays late every month, usually by 9th or 10th because of the pay cycle. Adds late fee every month like a clockwork and has been a tenant for like five years, that is with normal rent increase every month. Why would I turn over the unit?
1 Reply
Al Pat
Rental Property Investor · Atlanta, GA · Member since 2016 · 325 posts · 253 votes
6y
@John Morgan I’m like you, it doesn’t bother me either but unlike you, I add late fees. Business is business. No one is allowed past 20th of the month unless paid partial (usually 50%) rent. Under no circumstances past 30 days mark without filing for eviction.
0 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
Originally posted by @Al Pat:
@Dennis M. Why wouldn’t you? I have a tenant who pays late every month, usually by 9th or 10th because of the pay cycle. Adds late fee every month like a clockwork and has been a tenant for like five years, that is with normal rent increase every month. Why would I turn over the unit?

Because eventually they fall behind and can’t catch up not to mention they don’t respect the lease or your rules . Im glad it’s working out for you in this case but I guess my thought is why settle for a late payer when you don’t need to . There’s other folks out there that do pay on time instead of wondering and waiting for jethros payment to come in

1 Reply
Charles Ngansop
OP
Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
6y
Thanks, Bill
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