Habitual Late Paying tenant! To evict or put up?

Habitual Late Paying tenant! To evict or put up?

Woodbridge, VA · Member since 2017 · 122 posts · 44 votes

Hi All- I have a tenant who habitually pays late. In fact, she has started to pay in arrears. To give some background, she has been renting for over three years now. She was not the most qualified tenant at the time but had a stable job and rent paying history. At the time, I was out of the country and was keen to get it rented. In fairness to her, she use to or at least most of the time paid on time prior to the pandemic. 

During the pandemic, she started paying late and had some arrears all of which were paid up without too much hassle. However, she has fallen in this habitual routine of paying at the end of the month. I decided against charging any late fee in the past.

She is back in full time employment along with her adult children who are also on the lease and in full time employment but my contact is mostly restricted to her and she is quite unresponsive to my repeat requests that she pay as per lease. She was quite upset on the suggestion that I will start charging late fee if she continues with this. Frankly, I don't want to charge late fees either. I am also worried that the one month sec deposit won't cover any lost rent or potential damages if she moves on overnight. Falling short of not renewing the lease, what else can be done to bring her to comply with the lease. So this month's rent which was due on the 1st is not paid and with the rent being around 3K, this has the potential to balloon up quickly.

0Reply
201 views

Most Popular Reply

Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
5y

@Jacob Beg

You've allowed the behavior for a long time. It's going to be difficult to change it. I know this doesn't help you, but this is one of the worst side effect of letting late-payers stretch out the late-paying.

You could try a frank conversation about how things need to change, how you need that rent on time. How you'll be forced to charge a late fee to offer her the convenience of paying as late as she has. You just don't have the money to cover her. It's not in your budget for this rental.

But probably nothing is going to change until you have to get rid of her. And you can be damned well sure that when she goes, she will insist that she paid the rent every month "just as soon as I had it," and that should have been good enough for you. The cognitive dysfunction necessary to forget the actual terms of the lease has probably already happened upstairs for this tenant.

See this reply in the discussion

31 Replies

Jump to latestLatest
  • Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    5y

    @Jacob Beg She has just gotten too far behind to catch up. But if she is borrowing from her 401k, she probably understands it is not sustainable to keep paying 3 weeks late. When she gets caught up, remind her that rent is always paid in advance before it is consumed, and that is fair; and thank her for getting caught up. I don't like turnovers and I don't like the current covid environment but it is up to you which is riskier, renewing or not renewing once the lease comes up.

  • Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    5y

    @Jacob Beg EVICT

  • Member since 2021 · 237 posts · 153 votes
    5y

    @Jacob Beg

    She’s in your kitchen. That’s a problem. I like what Jim said, next time don’t let it get to this point. Spending even one minute stressing about this kind of thing isn’t worth it. Solve the problem, and next time prevent it as opposed to solving it.

    I take 2 accepted methods of payment: auto debit, etransfer. Anyone who is late loses their monthly auto discount of $1-$200. Anyone late twice gets the Reebok. And if the market gets warm enough credit card backup is a requirement, right now it’s optional.

  • Real Estate Agent · Memphis, TN · Member since 2019 · 261 posts · 253 votes
    5y

    Let them know that it's expected on time from this point on - enforce the late fees.  after Nov., file an FED after the 15th if not paid up in full.  If she doesn't take well to the retraining, there's no shortage of qualified tenants willing to pay over-market right now.

  • Real Estate Syndicator · Phoenix, AZ · Member since 2018 · 903 posts · 1k+ votes
    5y

    Depends what your goals are. If you are trying to reach financial freedom or improve your financial stature, then any approach other than eviction is not going to move you towards your goals. Evict, learn and set the behavior at the start.

    Run it like a business, in order to be treated like a business. Relying on emotions for decision-making rarely make a profitable business in real estate.

    With that being said, if you value kindness and are ok with making the world a better place by potentially losing some profits, then that too is dependent on your goals! It is always up to you :)

  • Woodbridge, VA · Member since 2017 · 122 posts · 44 votes
    5y

    @Chris Levarek well said. This pisses me of because I do value kindness. And I’m starting to question my approach. I don’t strictly enforce late payments to give tenants a break if they are a few days late here and there. I have been particularly cognisant of this due to the pandemic. 

    So she promised to have the rent deposited by today. I can already tell that next month will be late again if she is just depositing 3k and the rent is due by 1st of each month. 

    As someone else said, perhaps start serving pay to quit notice and that might bring her back to compliance. My experience is that sometimes it has an opposite effect, escalating an adversarial stance resulting in larger uncollectible rental loss and potentially malicious damage. It’s a balancing exercise but her annual  lease was renewed recently so I’ve got to find a way to curb this conduct and terminate when it comes time for renewal unless there is a radical departure to this sordid affair. 

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