A tenant didn't pay rent on the 1st of the 1st month of new lease
A tenant didn't pay rent on the 1st day of the 1st month of new lease. I looked at our lease agreement, and the due date for rent was left as 'blank'. The due date for the rent is supposed to be '1st' each month and the lease agreement should state that. My realtor made a mistake of leaving it as blank, and I also made a mistake of not checking it beforehand. I texted the tenant to pay the rent by 2nd and also sign addendum with due date of 1st each month. He hasn't responded yet, nor deposited the rent as of 3pm on 2nd. The lease agreement doesn't specify the exact due date, so he doesn't have any obligation to pay the rent by any day of the month. Am I right? Today being Friday, next Monday will be already 5th. I don't know what to do. I can't enforce any late fee penalty nor eviction process whatsoever at least until the last day of December? Should I take it as a pricy lesson and assume the due date for the rent is 30th or 31st of each month and enforce if he still doesn't pay the rent? I am stuck and don't know what to do. Any advice or comment will be greatly appreciated.
@Seung Don Hong, talk to the agent and then also talk to the agent's broker. If they did the tenant placement and wrote the lease they should be motivated to help you get this resolved because they are responsible.
Let the agent and broker know that they are responsible for any loss. Real estate brokers and agents carry Errors & Omissions Insurance to cover client's losses due to their mistakes. So, they should either pay you or the insurance should. You may need to sue, but small claims you can handle yourself without a lawyer. Obviously if this is resolved soon there may not be enough loss to be worth fighting over but if this drags on it could.
Wow, you cannot force him to sign an addendum so (Maybe) he can choose whatever date he wants, such as February 23rd 2050....and live there rent free until the lease expires (???)
Ouch....
#4 All Forums Contributor
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#4 All Forums Contributor
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It is usually assumed that rent is due on the 1st and overdue on the 5th. See if they will sign a new lease with these terms.....
They have to pay rent sometime, so at worst you lose 29 days of free living....?
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Tenant is going to be a issue for you, be aggressive in collecting your rent. If a tenant the first day is playing hard ball it's going to be a long lease
The tenant paid rent on 2nd. I met him in person and received the rent. He said he was sick for a couple of past days, and he was. He hasn't signed the addendum yet. He told me that he will set up some sort of payment through his bank for the following rents. I am happy that he paid his rent on 2nd for December, but I am afraid that I will have to keep repeating this process every month without the addendum signed. I am considering subscribing rocket lawyer membership for legal advice.
Quote from @Seung Don Hong:
As Kevin stated, you should speak with the agent and make them fix this.
At the same time, I would take a deep breath and relax. You're stressing over the worst-case scenario. Most people will do the right thing, sign the addendum, and pay on time. Just give it a second.
The same tenant didn't pay rent on the 1st of January either. He said his bank online website wasn't working. I offered him to meet and receive a check in person if that's the case. No rent until 4pm on 2nd. I texted him to pay the rent and late fee accordingly. I want to have a plan in case he doesn't pay the rent and late fee by 5th. On which date should I contact eviction lawyer for help? Don't I want the 5 days notice delivered to him on 5th? That means I or my lawyer should certified mail the 5 days notice on 3rd or 4th, so my tenant has a chance to receive it on 5th? Or should I mail the certified mail of 5 days notice by myself and contact lawyer afterwards? It's our very first time with not paying rent situation, so any help would be appreciated.
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Check your local laws as in some places while rent is due on the 1st, it isn't considered late until the 5th.
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Who, specifically, signed the lease agreement as LL? Why would you have any need to "check it beforehand"? I'll make a guess here, your Realtor does not offer PM services, or, as a "favor", provided you with an incomplete form so you could have tenant sign the agreement.
IF the Realtor signed, it should also have been countersigned by their PB or Manager, in which case they should correct it. It is very simple to correct, unless the tenant has now become uncooperative due to poor handling of the entire process. All that is needed is for the correct date, or number of days grace period, to be filled in on the originally signed document, then tenant(s) and LL initial the change. This is a very minor oversight, and certainly should not need an addendum.
Aside from all that, having NO grace period is not terribly realistic in the real world of average or lower quality rentals. Expecting a transfer on January 1 is even less realistic. Just because banks have online access, does not mean money moves 24/7 - 365. I know there are PM's on BP, especially self managing, that will disagree with having a grace period, but you remove a LOT of drama by having a clear 4 or 5 day grace period, not counting weekends and holidays, with a equally clear and meaningful late fee (within local law) that you consistently enforce on all tenants. If you are viewing the late fees as a separate and additional "income stream", then you might think about reconsidering.
@Seung Don Hong. Call the tenant, work it out by speaking with them... Text should be reserved for non critical communication, not fixing a significant error like this.
The upside: your tenant is likely to understand and work with you, but you need to talk to them.
He wouldn't answer the phone when I call him. I will communicate with him through email from now on. He paid his rent on the 5th with some late fees.