My tenant has missed their first rent payment. I need advice/tips

[Alexus Bell]

Hello,

I am 27 with two doors one in which I am househacking and the other is a condo. The condo tenant has missed their first rent payment. I am seeking advice on next steps and any tips. read below for further background. 

Background: I am a novice and found BP after I bought my second property. I made a few mistakes in picking my tenant (which I realized after reading Brandon and Heathers book) but I want to do better. The tenant has never paid rent early or right on time but this will be the first late payment and they haven't reached out with an explanation or any response. I sent a small reminder, about the associated late fee with a late payment and have heard nothing.The property is in Georgia and the tenant is brand new this is only month three. I am thankful for all help. I am just getting my foot in this world and I don't want a huge hit that prevents my further progress. 

Thank you in advance for all your advice. 

- Alexus

[Nathan Gesner]

It's still pretty early in the month, so I recommend you take a couple days to do some heavy research on Georgia law. Check out the website nolo.com for state-specific laws and guidance. I also recommend you purchase their book "Every Landlord's Legal Guide" because it's the best for practical advice on every aspect of managing rentals and it includes your specific state laws.

Develop a battle plan before you start. For example, my policy is to charge the late fee on the 5th day of the month, 12:01AM. Once it is charged, it will not be waived. If rent is still not paid in full by the 10th day of the month, then I'm serving the tenant with a 3-day Pay or Quit, served by the Sheriff so the tenant knows I'm serious. If they still don't pay or vacate after the three days, then I file for eviction in court. Most tenants will catch up when they receive the 3-day Notice, but about 20% will move out. There is the rare individual that stays put and does nothing, but then they pay or move out when I file in court because they see the writing on the wall. In 12 years of managing nearly 400 rentals, I've only had five actually show up to court to fight their eviction and they all lost because they all owed the money.

Read your law, develop a plan of attack, and then get started. If you don't feel ready to put in the work, hire an attorney and let them do it while you observe and learn. Then you'll be better prepared next time.