Discover why so many successful investors support their investment careers with house hacking—and learn from a frugality expert who has “hacked” his way toward financial freedom!
View all Local Real Estate forums
@Terrell Garren good
@Charles Ngansop, I can explain what @Brian Boyd meant when he said, "The cost benefit for replacing the tenant vs. collecting late fees seems like the scales tip to collecting late fees."
If you were to weigh both of these on a scale (replacing the tenant vs. collecting late fees), the better choice would be to collect the fees. How much does it cost to collect late fees? Nothing, since you gain. How much does it cost to replace a tenant? Missed rent for a month/two months/five....PLUS cleanout PLUS possible repairs PLUS possibly having to paint...you get the picture. One gives you money and the other could cost you thousands.
@Constancia R. .Thumbs up Constancia. “ The most complicated skill is to be simple.” Anonymous.
My question is are they behind or just late every month. If they're late every month but current. Is something I can live with. I have a tenant who is late paying my management company every month, but they do pay every month absolutely. He has been doing that for 4 years. I can live with that. But if they constantly playing catch-up missing payments that's another subject entirely.
I agree with you wholeheartedly.
Thanks, @Gregory Shelton ,and @John Morgan .
late every month for almost a year now
@Charles Ngansop had this once before. In the end the nice tenant came up with a reason to not be able to afford rent at all and left us in a bind. If they can't afford it then you are not helping them either. Your time chasing down rent is cutting into your profits (time is money). Cut your ties as soon as possible.
But they are not behind, just late. Take the money and chalk it up to being a property owner.
@Charles Ngansop give them ONE chance to get caught up.
There are plenty of people who will take care of your property AND pay rent on time. The question is how much do you trust yourself or your management company to find those people?
@Charles Ngansop Being fiscally responsible isn’t taught to everyone. People are going to be late from time to time. As long as they don’t get too far behind and always communicate, stick with them. Be sure to examine screening practices, their finances, etc. and ask yourself what you might have missed that could have warned you that their not timely with payments. Don’t repeat it next time.
@Marcello I. what program
do you use?
@Shadow Grey I’ve been using Cozy. The transfer time from Cozy to your checking can be a little lengthy but there is an option to expedite it for fee.
Join the millions of people achieving financial freedom through the power of real estate investing
If you signed up for BiggerPockets via Facebook, you can log in with just one click!
Log in with Facebook
We just need a few details to get you set up and ready to go!
Full NameUse your real name
PasswordUse at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.
Connect with 1,000,000+ real estate investors!
Find local real estate meetups and events in your area.
Start analyzing real estate properties, we do the math for you.