What is your Late rent policy

Question

I’t seems just recently I have really had a hard time collecting rent on time. I just went they a major renovation after a non paying tenant finally moved out (covid eviction ban). One of my other properties appears to be headed that same direction. 1 week late, 2 weeks late, check bounced, etc. I’m curious what other landlords are doing? At what point do you send a letter and what does it say? 7 days late, 14 days late? Thanks!

Peter Mckernan · Answer

@Nate Valentine Same as @John Teachout unless the tenant gives you a heads up (there is a line in the sane though, if they hit you up every month stating they are late you have a problem). After the 3rd day of the month $50 a day and once that 3rd day hits and they are late with no communication, serve 3 day pay or quit notice, and then if they do not pay after that notice you can start the eviction process (this is all excluding COVID eviction challenges).

Swathi Vijayakumar · Answer

Hi all

I'm out in California and I just got a new tenant in back in July. This tenant is great and always pays rent on time. But I just realized that the realtor I used to rent the place out failed to put an amount for the late penalty. My tenant is great right now and I don't actually expect any issues. However, if I do run into late payment or non payments, how would I handle this situation. Can I do some sort of an addendum to rectify this mistake?

Chris Hosier · Answer

I do almost the same as @John Teachout. Rent is due on the 1st, late after the 5th with a $50 late penalty and then $10 per day for each additional day late.

Clint Everhart · Answer

@Nate Valentine  Nate we have a five day grace period. But on the 4 Th. I start with a 3 Day pay or quit notice. Post it where the neighbors see it and take a picture. In my state Arkansas I can file a criminal evection. With the sheriffs office. It’s a 10 day eviction notice. It is served to the residents by a uniformed police in a police vehicle. It cost me $50.00 Most of the time they get out￼. The police won’t in-force this order without a writ of possession. From the court. But it’s never a good day when the sheriff is beating on your door.

John Teachout · Answer

Unless I hear from the tenant as to when the rent is coming, we'll serve a pay or quit notice as soon as the grace period has expired. Our late rent policy is 1st through the 5th is considered on time. $75 fee on the 6th and an additional $10 per day every day thereafter. (They're less on some of our low priced rentals)