Would you kick someone out if she keep paying rent late
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Melanie ThomasBusiness Member
Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votesGreetings! Yup, overdue for a new tenant. Dealing with a consistently late-paying tenant can be quite troublesome. In such cases, it's advisable to consider sending a non-renewal notice and starting fresh with a new tenant. There's no need to be overly concerned about potential property damage by the tenant, as if they belong to the category of tenants who would cause such issues, it's likely that the property may already have sustained some damage.
At our organization, we have an internal protocol that recommends non-renewal if a tenant is late with payments on two or more occasions within a 12-month period. Additionally, we strictly adhere to a zero tolerance policy, initiating the eviction process promptly after the grace period expires. Allowing tenants to slide once sets a precedent and makes it more likely to become a recurring behavior. It's crucial to establish clear internal policies and procedures and consistently enforce them every single time. Good luck & happy investing!
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61 Replies
- Real Estate Agent · Austin, TX · Member since 2023 · 21 posts · 13 votes3y
To me, this would depend on what city you live in and what kind of tenant she is otherwise. If it's affecting your mortgage payments and she has not otherwise been a respectful tenant, then I would say yes, let her go. Does she take care of the property and keep a clean unit? Or is she devaluing the unit? Coming from Chicago, our tenant laws are extremely strong and it would take potentially a year to evict a tenant (especially with the post-covid courts). Then you have to worry about the potential of vacancy afterwards and the loss that comes with that....plus a leasing commission if you hire an agent. I've kept good tenants who consistently pay late as long as they're ultimately reliable. Some people get paid on atypical schedules. But if it's negatively impacting the cash of the property, then I think you have a decision to make.
I think you're the only one who will know if she will destroy your property, but generally there's some semblance of a respectful relationship with a long term tenant like that.
- 3yTina LeeMember since 2021 · 199 posts · 42 votesOP
As for now she just let me know she will pay rent by end of this week which is by the 11th.
It’s just coming from constantly monthly frustration.
She is good tenant beside the late payment, on the covid she ask me to fill out form to get some help from goverment however somehow she didn’t qualified. I did provide her 6 month credit of $350 per month due to covid.
None of my others tenants even asked for credit on covid nor ask for goverment help. Some of them just move back to their parents but all rent are paid whike there staying.
She is not terrible but one of those tenant who constantly pay rent late.
- 3yMelanie ThomasBusiness MemberReal Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votes
Greetings! Yup, overdue for a new tenant. Dealing with a consistently late-paying tenant can be quite troublesome. In such cases, it's advisable to consider sending a non-renewal notice and starting fresh with a new tenant. There's no need to be overly concerned about potential property damage by the tenant, as if they belong to the category of tenants who would cause such issues, it's likely that the property may already have sustained some damage.
At our organization, we have an internal protocol that recommends non-renewal if a tenant is late with payments on two or more occasions within a 12-month period. Additionally, we strictly adhere to a zero tolerance policy, initiating the eviction process promptly after the grace period expires. Allowing tenants to slide once sets a precedent and makes it more likely to become a recurring behavior. It's crucial to establish clear internal policies and procedures and consistently enforce them every single time. Good luck & happy investing!
RentWerx Property Management4.73296 Reviews - Real Estate Agent · San Antonio, TX · Member since 2016 · 67 posts · 58 votes3y
@Tina Lee Yes, as said, it will depend on your location and local laws/ordinances. It will also depend on the lease verbiage itself.
I'd see if there was a way to get a promulgated (legal) document that is more advantageous for you as the landlord. Make sure that is spells out exactly when you expect rent to be paid and what sort of consequences exist if those timelines aren't met.
You have time to make some changes and possibly draft a new version of a lease before August. If she agrees and signs the document, great. If she doesn't then the decision is made for you.
I'm with you though, late payment can be tricky and a nuisance but you can protect yourself and set up proper expectations with your documentation.
Good luck!
- Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Tina Lee:
One of my tenant, Her rent is due on the 1st and 6 out of 12 month pays rent late. Usually by the 2 Nd and third ,one time on the 12th after I told her if she doesn’t pay me on time and not repond ding my text I will started an eviction.
She has been my tenant for 5 years I started wondering if I should kick he out finally.
Her lease ends on august 31st. Should I just let her go? Will she be upset and destroy my property ?
If it were me, I would let her know I wouldn't be renewing her lease. She's consistently violating the terms of your lease to pay on the 1st. Do you have a security deposit? It's possible that the tenant could damage your property intentionally, but that seems to happen more commonly when you try to evict them. You can't control how your tenant reacts though and you have to do what's best for you.
Just like a with a bad employee, you need to know when to "terminate" or "fire" someone because otherwise you're enabling bad behavior. If you continue to rent the unit to her, do you think she's likely to suddenly start paying rent on time?
- Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes3y
You said multiple times she is a good tenant but I’m just not seeing it. Taking care of the place and paying rent on time just make you my tenant but that is really the minimum expectation. You have had this tenant for 5 years but you didn’t mention if they are at market rent or as I suspect behind. I’d non renew and find a new market tenant. I’d wait to give the notice until after receiving rent for July which is over 30 days and don’t expect to get august rent since they most likely need it for the new place.
- 3yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Talk to her and tell her she seems to be struggling financially and perhaps it would be best if she found a less expensive place to live. Otherwise, if you do renew her lease, then have a late fee. Make sure you know what qualifies as late in your area as I've heard a number of people in the US say it isn't late until the 5th as the rules allow for time for it to arrive in the mail. Where I am, rent is due on the 1st or it is late.
- South Holland, IL · Member since 2017 · 374 posts · 432 votes3y
@Tina Lee
My decision would depend on the probability of me replacing her with a better tenant. This will likely depend on the quality and area of the property. I own mostly D class properties. I would hold on to her like grim death because I know the options are probably worse. If it’s at least a C class property I would give her notice of non-renewal. You have a good chance of finding a better tenant. As far as her destroying the property, you have no control over that. I wouldn’t be held hostage to her possible destructive behavior. You’ll probably have to do some remodeling anyway after 5 years
- 3yColleen F.Pro MemberInvestor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
@Tina Lee Do you have late fees? does she pay them? Do you deliver a pay or quit notice when you can because of how late she is. Because our law here is that you can't do late fees until the 5th I have that in my lease but I discuss that rent is still late even though there is not a fee between the 1st and the 5th and that is what I will tell any landlord that calls. I did put one payer like this on month to month and increased late fees that worked out because I told them that was it, eventually they left because it was too expensive.
Is she paying market rent? (considering the condition of her unit). If she is in the unit for 5 years what would it take turn it over? Personally if she is not paying market and is struggling to pay at all I would give her a non-renewal. If she is at or close to market and she is just one of those disorganized people it might be worth a try at month to month. (given you said mostly it is the 2nd/3rd she pays) but then you said she has a discount so not sure. Plan the turnover now if you are doing a non-renewal.
- 3yNed J.Pro MemberInvestor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
Do you have late fees and do you enforce them?
Are you at or near market rent?
What are you looking at for turnover costs?
So basically if this issue is really just the "beginning of the end", then just rip the bandage off and move on.
At minimum I would be hard core on the late fee..... serve notice every time she is late and stay MTM. If that doesn't shape her up, I tried, but bye bye....
Some LL on here are in the "cool.... they pay AND I get late fees, so I make more $$".....the frustration isnt worth it in my mind.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Tina Lee:
One of my tenant, Her rent is due on the 1st and 6 out of 12 month pays rent late. Usually by the 2 Nd and third ,one time on the 12th after I told her if she doesn’t pay me on time and not repond ding my text I will started an eviction.
She has been my tenant for 5 years I started wondering if I should kick he out finally.
Her lease ends on august 31st. Should I just let her go? Will she be upset and destroy my property ?
Let me get this straight, she paid on the 2nd or 3rd vs the 1st, so 1 and 2 days late, and ONE time she paid on the 12th and you want to evict? ??? All due respect, you need to find another profession. EVERY landlord in the world would LOVE a tenant like this. 5 YEARS and NEVER ONCE late, a day is NOT LATE, ,
Again, you really should sell and, move on.
Sorry to be so aggressive but post like this drive me crazy!!
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Melanie Thomas:
Greetings! Yup, overdue for a new tenant. Dealing with a consistently late-paying tenant can be quite troublesome. In such cases, it's advisable to consider sending a non-renewal notice and starting fresh with a new tenant. There's no need to be overly concerned about potential property damage by the tenant, as if they belong to the category of tenants who would cause such issues, it's likely that the property may already have sustained some damage.
At our organization, we have an internal protocol that recommends non-renewal if a tenant is late with payments on two or more occasions within a 12-month period. Additionally, we strictly adhere to a zero tolerance policy, initiating the eviction process promptly after the grace period expires. Allowing tenants to slide once sets a precedent and makes it more likely to become a recurring behavior. It's crucial to establish clear internal policies and procedures and consistently enforce them every single time. Good luck & happy investing!
Come on shes WAS 1 and 2 days "late", this post does not even deserve the attention its getting, It absurd. I have had dozens and dozens and dozens of properties. The ONLY time I ever have gotten paid on the 1st is with my govt tenants. Cash tenant NEVER ONCE in 10 years ,and I PM more then 500 doors, and NOT ONE of the cash tenants pays on the 1st.
All the best
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Ned J.:
Do you have late fees and do you enforce them?
Are you at or near market rent?
What are you looking at for turnover costs?
So basically if this issue is really just the "beginning of the end", then just rip the bandage off and move on.
At minimum I would be hard core on the late fee..... serve notice every time she is late and stay MTM. If that doesn't shape her up, I tried, but bye bye....
Some LL on here are in the "cool.... they pay AND I get late fees, so I make more $$".....the frustration isnt worth it in my mind.
LATE FEE?? for 1 and 2 days past the 1st??? GREAT way to lose a tenant
- Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes3y
Most property managers do not consider rent late unless it's paid after the 5th. So sounds like a lot of those were not even late payments. Although one of them was pretty late. But nonetheless, no that's a fine tenant, I would for sure keep them.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Allan Smith:
Most property managers do not consider rent late unless it's paid after the 5th. So sounds like a lot of those were not even late payments. Although one of them was pretty late. But nonetheless, no that's a fine tenant, I would for sure keep them.
THANK YOU, of course this is NOT a late payment, OF COURSE you keep her, Heck I will take her LOL
- 3yNed J.Pro MemberInvestor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
@Bob S.....after the 5th, damn right there should be a late fee..... that will be enforced.
Rent isn't officially late until after the 5th...so relax..... anything before that isnt LATE.....so chill out....thats what I was referring to
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3yshe was past the 5th ONCE, shes a GREAT tenant. I would also not even charge her as it was only once, You were not clear, you wanted to evict as she was 1 and 2 days late, thats the absurd part,
Quote from @Ned J.:
@Bob S.....after the 5th, damn right there should be a late fee..... that will be enforced.
Rent isn't officially late until after the 5th...so relax..... anything before that isnt LATE.....so chill out....thats what I was referring to
All the best - 3yTina LeeMember since 2021 · 199 posts · 42 votesOP
@All, thank you so much for your advice
The place is in a white collar professional area, renting out is not a issue at all. However the tern over on past was bad people only rent 1 or 2 year then they will want to move out.
I think I have my answer already I will no renew the lease and sent her a non lease renewal.
However her lease expire on august 31st and law of ours city need to give 90 days notice for people who live there for more than 3 years. How can I approach that now as today June 6th.
Should I just send 90 days notice and tell him he has time to move out by the September 30th 2023?
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Tina Lee:
@All, thank you so much for your advice
The place is in a white collar professional area, renting out is not a issue at all. However the tern over on past was bad people only rent 1 or 2 year then they will want to move out.
I think I have my answer already I will no renew the lease and sent her a non lease renewal.
However her lease expire on august 31st and law of ours city need to give 90 days notice for people who live there for more than 3 years. How can I approach that now as today June 6th.
Should I just send 90 days notice and tell him he has time to move out by the September 30th 2023?
Big mistake, You are now going to lose 3 months of rent, and have to get the place rent ready again, . another 5- 8k, maybe more,
good luck - 3yColleen F.Pro MemberInvestor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
@Tina Lee how long will the turnover take? Is this an apartment or SF. You could give her notice for the 30th Sept. depending on your local laws. Also make sure that if you are a for cause termination of lease location that you would meet the criteria they set.
If it is a SF home attractive to families keep in mind that is during the school year when families aren't keen to move. In true A class areas you may only get people who stay a few years before buying their own place. If it is an apartment or small home probably not so much of an issue.
- 3yDan H.Pro MemberInvestor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
At lease update, I would
1) add a small grace period. Our rent is due on the first and considered late on the 6th.
2) change the late fee to the maximum allowed in your jurisdiction. In California they leave this very open to what is reasonable. Our lease charges the greater of $50 or 5%. Our cheapest rent currently is $1400 (small studio), so in every case the late fee is 5%.
If the tenant communicates issues with making the payment on time and it is a rare occurrence, we do not collect the late fee. If they do not communicate the rent will be late, then we charge the late fee. We have only had one tenant late enough times that even with communication we charge the late fee and he knew as the 3rd time he was late he told us that he expected to pay the late fee (his late fee is currently $150).
If there is no communication, on the 7th we provide 3 day notice to pay or quit. The tenant has always come up with the money and late fees before the 3 days are up.
If the tenant wants to pay an additional 5% rent for at most paying 10 days late, I am not going to have an issue. 5% for 10 days equates to some super high annual interest rate (something over 150%). There are few ways I can earn over 150% on my money that is as passive as a late fee.
- Member since 2020 · 31 posts · 13 votes3y
@Tina Lee I had 2 tenants who would pay late, each one was told there would be a $50 late charge. One has never paid late since then. The other one regularly sends the extra $50. I don't mind him paying late as long as he pays and doesn't forget the extra payment. I would only replace the tenant if you are afraid at some point she won't pay at all otherwise why incur the turnover cost?
- Member since 2019 · 2 posts · 4 votes3y
Why would a real estate investor get rid of steady monthly cash flow? It sounds like the issue might be more with the landlord than the tenant. If the tenant is paying market rent and is collecting lates fees every time rent is late, then why get rid of them? If the landlord doesn't have market rent with penalties for late rent, that is on the landlord. The tenant has been paying rent for 5 years! Think about that. Unless you are in a market where multiple prospective tenants are lined up ready to pay significantly more rent, you should simply revise your lease at renewal time and let the tenant decide. Long term steady tenants are the best way to cash flow and eliminate vacancy and make ready costs.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Steve Rodriguez:
Why would a real estate investor get rid of steady monthly cash flow? It sounds like the issue might be more with the landlord than the tenant. If the tenant is paying market rent and is collecting lates fees every time rent is late, then why get rid of them? If the landlord doesn't have market rent with penalties for late rent, that is on the landlord. The tenant has been paying rent for 5 years! Think about that. Unless you are in a market where multiple prospective tenants are lined up ready to pay significantly more rent, you should simply revise your lease at renewal time and let the tenant decide. Long term steady tenants are the best way to cash flow and eliminate vacancy and make ready costs.
As I mentioned several times this is an absurd post .The poster really has no idea what they are doing,
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