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

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

Alexus Bell
Rental Property Investor · atlanta · Member since 2021 · 17 posts · 3 votes

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

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y

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.

The DIY Landlord Book4.7248 Reviews
WebsiteView Page
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  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    4y

    The not-knowing is the worst, @Alexus Bell. You need to got study local landlord-tenant law, the process of eviction, what you legally can and cannot do about this situation. It gets a lot easier once you know where you stand. If you do have to evict this tenant, consider hiring a lawyer for this first one.

    But for starters, there's no small reminders at this point. Call up the tenant and ask point-blank. When are you going to get ALL your money and late fees? Don't let one month turn into two, and two into three.

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    Start by contacting them and see what happened.  Does your lease charge a late fee?  Post a notice to pay or quit telling them rent is due and if they can't pay, they need to move.  It doesn't appear for Georgia that there is a set number of days required for payment (goggle notice to pay or quit Georgia and there are standard forms to use).  Give them a couple of days and then if they don't pay, serve them with an eviction notice.  As you said you are new and don't seem sure about this, reach out to an eviction attorney now.

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y

    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.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    3Reply
  • Maksu Ize
    Investor · Vancouver · Member since 2021 · 165 posts · 137 votes
    4y

    As scooby doo says

    Ruh roh

    0Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    4y

    The 5th was Friday so I wouldn't get too worked up.

    On Monday I'd send a 'friendly rent reminder' text.  The big guns, notices, etc go out Tues.  

    1Reply
  • Gail K.
    Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
    4y

    As a landlord in Georgia I send a 3 day Pay or Quit notice with the late fee attached to a tenant who has not paid rent.  This often gets a response (and the rent).  Interestingly, Georgia does not require a landlord to send such a notice and, after contacting the tenant regarding the lack of rent (and no adequate response) the landlord may immediately file a dispossessory affidavit (our version of the steps toward an eviction).  However, if this ends up in court our judges typically ask for a copy of this Pay or Quit notice.  

    If no response (and no money!) the next step is filing for the affidavit through your local court system.  Most counties have the details on how to do this online, including the fees for the filing.  Again, in my county once a tenant is served by the local law enforcement handling evictions they have 7 days to respond.  If they respond to the court a hearing is set up where both sides can provide information as to why or why not the request for the eviction should be granted.   If no response within that 7 day period you go back to the Clerk of Court and request a dispossessory warrant and the next step is a notification from law enforcement when the eviction will take place.

    Again, this can vary depending on your county so review your specific requirements.  Georgia does tend to be a landlord friendly state and (for example) a tenant cannot withhold rent claiming a repair they informed the landlord about was not addressed.

    If you feel uncomfortable doing the above you can always consider hiring an attorney to handle all of this.

    2Reply
  • Alexus Bell
    OP
    Rental Property Investor · atlanta · Member since 2021 · 17 posts · 3 votes
    4y

    thank you all truly for your help. I've wrote down all of your tips and hopefully this will not deter me. 

    0Reply
  • Michael Ablan
    Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    4y

    @Alexus Bell - Follow your states eviction guidelines and start them immediately.   Let your resident know that you're doing it, but will cancel it when the rent is paid.  If they pay, then give them a lease violation for paying late.  If they violate 3 times, then evict for repeated lease violations 

    2Reply
  • Daniel SmythPro Member
    Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
    4y

    @Alexus Bell

    Start eviction procedures for that county today.

    If you get satisfied, you can stop the process. If you get nothing but silence, you get your property back sooner than later when you try to collect many months of rent.

    It's not a personal thing, it's business.

    Good luck!

    [email protected]
    0Reply
  • Alexus Bell
    OP
    Rental Property Investor · atlanta · Member since 2021 · 17 posts · 3 votes
    4y
    hello all, I have a new question now. So the tenant finally replied and did not waste time with an excuses. instead they apologized paid a large portion of the rent but not all. Then claimed this would not happen again and the rest of the money would be sent but did not provide a time frame. What are your thoughts for next steps. In my county it states if rent is not paid however not whether it is paid in full.
    0Reply
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