Rent 11 days late, what should i do ?

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Rent 11 days late, what should i do ?

Rashee D.
Member since 2020 · 14 posts · 14 votes

My tenant always pays rent late but usually before the 4th. This month the tenant still has not paid rent or reached out & today’s the 11th. I already informed the tenant that there will be a late fee than she told me that she was out of the country until the 14th. That was false because i live downstairs and i have seen her come in and out of the apartment on my camera.This is the first time this has happened and i want to avoid this from happening again, my tenants don’t know me as the landlord i act as the middle man/property manager What should i do ?

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Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
4y
Originally posted by @Rashee D.:

My tenant always pays rent late but usually before the 4th. This month the tenant still has not paid rent or reached out & today’s the 11th. I already informed the tenant that there will be a late fee than she told me that she was out of the country until the 14th. That was false because i live downstairs and i have seen her come in and out of the apartment on my camera.This is the first time this has happened and i want to avoid this from happening again, my tenants don’t know me as the landlord i act as the middle man/property manager What should i do ?

 You are getting mucked down in unimportant details. It doesn't matter if she is in the country or not. Rent is due on the 1st and it is the 11th, so it is 10 days late. Consult a local attorney. Serve her with a pay or quit notice, which is the first step towards eviction. Use a process server. They will try to serve in person, but they can also post on the door and sign an affidavit of delivery. If necessary, proceed to eviction. In the future, you want to post notice sooner. 

Don't listen to excuses and try to untangle truth from fiction. I would also advise that you disclose to tenants that you are the owner and landlord/manager of the property. Hiding that from tenants is a big mistake and comes back to bite you later. If you end up in eviction court, your name is listed on there as the owner. How do you expect honesty from your tenant if you are not being honest with them?

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  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    4y
    Originally posted by @Account Closed:

    @Rashee D. Also you need to understand what “late” means according to your lease. Rent is obviously due on the 1st, but late fees don’t usually start until the 6th. So it’s not technically late until the 6th.

    This grace period can vary, so you should read and understand your lease.

     Not true.  I've had this conversation with countless tenants.  If  rent is due on the 1st, then it's LATE as of the 2nd.  Just because there is a 3-4 day grace period before LATE FEES doesn't mean it's not late on the 2nd.   We are free to give a 3 day notice BEFORE late fees kick in. 

    4Reply
  • Account Closed
    Rental Property Investor · Indianapolis, IN · Member since 2020 · 562 posts · 554 votes
    4y

    @Cody L. Yes, you can technically post a late notice at 12:00am on the second if you prefer to do so, and that is what your lease says. I don’t find that to be common practice.

    The important thing is to follow the lease and understand when the lease says is late. That is the point I was making.

    1Reply
  • Rob Gillespie
    Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
    4y

    Hey Rashee, 

    I like the fact that you do not let them know you are the landlord. good move!

    when they pay late, the court will view that as their new payment date since you set a pattern 

    of accepting it after the 1st. I would immediately post eviction notice and not accept any money unless

    they have the full amount with late fees. Start holding to paying before  the 4th and handing out eviction

    notices on the 5th. Good luck!

    2Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    4y

    Notice to Quit.

    1Reply
  • Melody DawsonPro Member
    Investor · Concord, NC · Member since 2020 · 24 posts · 15 votes
    4y

    @Nathan G.

    Thank you for reminding me about Nolo press. Also for the great answers regarding lat renters.

    Melody @MeloLifeB

    [email protected]
    1Reply
  • Brock Bolduc
    Property Manager · Port Orange, FL · Member since 2014 · 18 posts · 8 votes
    4y

    @Rashee D.

    We give our residents a 3 day grace period and post 3 day notices on the 4th each month with late fees. If they don’t pay by the 7th then we can start the eviction filing if we choose to. Typically if a resident gives us a heads up that they will be late and are good residents we will work with them to an extent but try to get the rent paid by the 15th. It’s been my experience that it’s tough for people to get caught back if they get more than 2 weeks behind. There’s also plenty of rental assistance funds available right now and we’ll point our residents in that direction to help keep them in the property. It’s usually better to try to work with the residents than go straight to eviction because the cost of vacancy and turnover are always the biggest expenses to a landlord.

    2Reply
  • Kevin McGinnis
    Investor · Glen Carbon, IL · Member since 2013 · 40 posts · 18 votes
    4y

    Below, in italics, is a portion of a clause in my lease (Illinois), and I follow it to a "T".  You should follow yours also, do not waiver.  I charge a $60 late fee (after 5 pm on 5th) plus $5 per day.

    You should also follow the rules in your state, for when you can/should serve 5-day notice, and when you start eviction if that is ignored.  Step 1 - late fee; Step 2 - 5 day notice; Step 3 - start eviction.  And before I get to Step 2, I tell them it's coming, and when.

    Payments must be made paid in FULL by 5:00 p.m. on the 5th to avoid the late charges. If rent is not received by the 10th, a Five Day Notice will be served and you will be charged an additional $50 service fee. If rent is not received by the 15th, eviction will begin, and you will be held responsible for all collection, court and attorney fees/costs. Three (3) late rent violations will result in a rent increase of $50 per month to cover additional collection costs.

    4Reply
  • Adam Mittermeier
    Specialist · Little Rock, AR · Member since 2018 · 148 posts · 71 votes
    4y

    @Rashee D. Start the eviction process.

    1Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    4y
    Originally posted by @Nathan Gesner:

    You should start the eviction process. Most renters will get back on track as soon as they know you're serious. Hire an attorney that knows what they're doing and get the ball rolling immediately. You're close enough to the 14th that you may consider waiting until then to see if she pays, but I wouldn't because she's obviously lying.

    You really need to educate yourself on how to be a Landlord. Build some policies into your lease and follow them. If you set rules in your lease but don't enforce them, then the Tenant will see that and assume they don't need to follow any of the rules. You're just setting yourself up for failure.

    Regardless of what happens, you need to get rid of this tenant when the opportunity presents itself. Don't ever keep someone that blatantly lies or regularly pays rent late.

     Unfortunately, according to BP rules, I can only vote 1 time for this post.  I think 10 votes would be more appropriate. 

    2Reply
  • Cong Nguyen
    Member since 2021 · 5 posts · 2 votes
    4y

    @Rashee D.

    1Reply
  • Cong Nguyen
    Member since 2021 · 5 posts · 2 votes
    4y

    @Rashee D. Move on to the next one if not make them pay late fee IMO

    1Reply
  • Brian Walters
    Las Vegas, NV · Member since 2019 · 173 posts · 78 votes
    4y

    The more leeway you give them the more they are going to take.  It seems like that's what happening here being they are now also lying to you about them being out of the country on top of late/no payment.

    Hopefully your lease has detailed language around this.  Stick to the letter of it that way there is no confusion on their part.  If they haven't given you any other issues hopefully after a few late fees they get on track and turn into a better renter.  

    1Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    4y
    Originally posted by @Chris Pasternak:

    16 posts in someone finally calls him on lying to the tenant meanwhile he whined about the tenant lying to him.  Love these forums.

     We introduce ourselves as the PM and do not consider it lying.  We are the property managers.  We also are the owners of H3 Properties.  When I refer to the owners when communicating to the tenant I really mean the wife, child, and myself but do not provide that detail.  Tenant “we would like the carpet replaced”   Me: “I will check with the owners and let you know”.  Wife and I look at age of carpet   If 10 years old we may replace.  If close to 10 years old we may replace.  If <8 years old, we do not replace the carpet.  In the case where new carpet replacement is rejected, the owners are responsible for the decision.

    Not a lie.  In addition, it should not matter who owns the property.  The OP can refer to himself however he desires.  I think it is smart to refer to yourself as the PM regardless if you are also the owner.

    As for what he should do?   1) Start the eviction process.  Use an experienced eviction attorney. It demonstrates rent needs to be a priority.  2) consider either reading books on rental management or hiring a property manager.  

    It is my belief if you do not have the time or desire to properly manage your properties, then you should hire a qualified, rock star PM.  PMs are not getting rich on what they charge to manage properties.   

    Good luck

    3Reply
  • Michael Simolke
    Rental Property Investor · Asheville, NC · Member since 2017 · 44 posts · 49 votes
    4y

    @Rashee D. Depends on how well they have communicated to you prior to, as well as their plan to make payments up to you. If they come off aggressive or not well intentioned/motivated when you address the issue, then drop the facts on them (eviction on record/no place to live/court) if they are positive and motivated then work with them and put your hard working self in their shoes and show empathy. They’re attitude is a MASSIVELY overlooked factor people I think miss on and come in to hard on their tenants and vice versa. Hope that helps bud!!

    1Reply
  • Michael Simolke
    Rental Property Investor · Asheville, NC · Member since 2017 · 44 posts · 49 votes
    4y

    @Rashee D. Hire a property manager or tell them you are the landlord. People will get over “it” a lot more than you would think.

    1Reply
  • Michael Simolke
    Rental Property Investor · Asheville, NC · Member since 2017 · 44 posts · 49 votes
    4y

    @Rashee D. The EASY ANSWER IS FOLLOW THE LEASE. The real answer is “every situation is unique” treat your craft like an art brother. Sounds like you want to do the “right” thing not the easiest.

    1Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    4y
    Originally posted by @Dan H.:
    Originally posted by @Chris Pasternak:

    16 posts in someone finally calls him on lying to the tenant meanwhile he whined about the tenant lying to him.  Love these forums.

     We introduce ourselves as the PM and do not consider it lying.  We are the property managers.  We also are the owners of H3 Properties.  When I refer to the owners when communicating to the tenant I really mean the wife, child, and myself but do not provide that detail.  Tenant “we would like the carpet replaced”   Me: “I will check with the owners and let you know”.  Wife and I look at age of carpet   If 10 years old we may replace.  If close to 10 years old we may replace.  If <8 years old, we do not replace the carpet.  In the case where new carpet replacement is rejected, the owners are responsible for the decision.

    Not a lie.  In addition, it should not matter who owns the property.  The OP can refer to himself however he desires.  I think it is smart to refer to yourself as the PM regardless if you are also the owner.

    As for what he should do?   1) Start the eviction process.  Use an experienced eviction attorney. It demonstrates rent needs to be a priority.  2) consider either reading books on rental management or hiring a property manager.  

    It is my belief if you do not have the time or desire to properly manage your properties, then you should hire a qualified, rock star PM.  PMs are not getting rich on what they charge to manage properties.   

    Good luck

     Agree 100%

    1Reply
  • Michael Lewicki
    Specialist · New York, NY · Member since 2021 · 24 posts · 9 votes
    4y

    @Rashee D. The problem is that she is lying about being out of the country so you know something is fishy. I’d also say start eviction process if possible

    0Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    4y

    @Rashee D.,

    It's obvious something happened that caused her to be late.    Stand up and state the obvious-- you're the landlord.   You aren't just a neighbor, or middle man.

    I'd post something on her door,  stating that she has 24-hours to let you know the situation, or you will start the eviction process.   I'd bet her car broke down, medical emergency, something like that-- and most importantly she'll tell you when she plans to pay.   If she's  a good tenant and plans to live there, it's likely she understands rent is owed, and will pay with the late fee.  I wouldn't waste money on lawyers until you know it's serious and she will need to be evicted.     I emphasize with tenants, we're on the same team-- I want you to stay there ($$$),  kicking you out doesn't help me.   Now if she's a bad tenant and you're looking for an excuse, start the process. 

    0Reply
  • Joseph Hammel
    Rental Property Investor · Lake Hallie, WI · Member since 2015 · 292 posts · 144 votes
    4y

    I don't do a grace period. I do charge a the max legal amount allowed for a late fee on the second. We cant see what state you are in. Whats the eviction process there? I've done several on my own but some people are not comfortable. You might call the county clerk to walk you through what paperwork needed and the process. There is a BP guide on here somewhere also. Good luck!

    0Reply
  • Ryan KeeslarPro Member
    Rental Property Investor · Mary Esther, FL · Member since 2019 · 29 posts · 11 votes
    4y

    post your 3 day notice. cant argue with policy - and enforce the late fee. its all fun and games until you are in breach of contract (works for both sides) 

    0Reply
  • Jeremy Komer
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 84 posts · 81 votes
    4y

    @Rashee D.

    Post the pay or vacate notice

    It should say that they will be facing eviction if they don't pay usually this gets the honesty out of them.

    Depending on your state just filing for eviction would stick to their record, usually that's a good motivation as well.

    0Reply
  • Alex Gurvitz
    Lender · Brooklyn, NY · Member since 2015 · 42 posts · 37 votes
    4y

    I would suggest to speak to her on a humane level of one that actually cares about what might be going on in her life. Perhaps she is going through something devastating, and just needs a chance to catch up. Evictions are never cost effective... If she sees that you are approaching her with a caring voice, she is much more likely to respond in a likely fashion, and you guys will work things out without a lengthy eviction process, nor a late fee.. You can always file for an eviction if you see that a humane approach does not work. This has worked for me in the past with my tenants. Best of luck to you!

    0Reply
  • Daniel SmythPro Member
    Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
    4y

    @Rashee D.

    From your post at the beginning, it looks like you have no real issue with timely payments.

    11 days tells me this tenant is not planning to pay anything.

    The sooner eviction begins, the sooner you get someone that pays on time.

    [email protected]
    0Reply
  • Seth WilcockBusiness Member
    Lender · Nashville, IN · Member since 2016 · 139 posts · 84 votes
    4y

    Hire an attorney and start the eviction process.

    Resolute Lending Powered by Independent Mortgage Brokers LLC
    WebsiteView Page
    0Reply
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