Would you kick someone out if she keep paying rent late

Member since 2021 · 199 posts · 42 votes

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 ?

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Melanie ThomasBusiness Member

Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 491 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!

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Account Closed
Rental Property Investor · New Braunfels, TX · Member since 2022 · 409 posts · 408 votes
3y
Quote from @Bob S.:

Quote from @Steve Rodriguez:

The tenant has been paying rent for 5 years! Think about that.
5 years of rent in my part of the country is over $100,000. Let them live in peace as long as they are taking care of your property! Insane to evict for this.
2 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Account Closed:

Quote from @Bob S.:

Quote from @Steve Rodriguez:

The tenant has been paying rent for 5 years! Think about that.
5 years of rent in my part of the country is over $100,000. Let them live in peace as long as they are taking care of your property! Insane to evict for this.

100% agree, IMO this is not a real post, NOBODY would evict this tenant,
1 Reply
Steve Rodriguez
Member since 2019 · 2 posts · 4 votes
3y
Quote from @Bob S.:

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,

@Bob S.
As I mentioned several times this is an absurd post .The poster really has no idea what they are doing,
What is worse is the advice some of these people are giving this person........

2 Reply
Adam Martin
Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
3y
Quote from @Bob S.:

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!!

I'm glad you pointed this out because I skipped over the mostly 1 or 2 days late and just saw she is late 50% and the 12 days stuck out. My lease says rent is due on the 1st and a late fee starts after the 5th. I prefer them to pay on the first and it is annoying that they don't but some tenants don't see it as late until there is a penalty. As long as I get it before the 5th I'm good. I would wager that many of us here have mortgages due on the 1st however since there is no fee until the 15th we pay late as rents come in. I for one do because I keep a small amount of money in my checking account it drafts from.
With that being the case though you have rented to this person for 5 years which is great for vacancy but you haven't mentioned how far below mkt they are, that would be my deciding factor. I invest in these same types of areas B+ to A- and long term tenants are rare since most eventually buy but rents have skyrocketed over the last 5 years.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Tina Lee:

I don't know what state you are in. Some states require you give a grace period. For example, my state requires I give the Tenant an additional three days after the due date, meaning I can't charge a late fee until the 5th.
If your tenant is paying a couple days late, it's not a big deal. If they are paying on the 12th, especially if they do it several times, then it's an issue.
I would consider increasing your late fee to something significant like $50 - $100 on the 5th day of the month. That may be enough pain that she'll stay on track.
Side note: Tenants that stay that long start to take things for granted and they are often below market. You may consider a non-renewal just so you have the opportunity to spruce up the unit and place a new tenant for top dollar.
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David Ramirez
Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
3y
Charge a late penalty fee from now on and if she doesn't start paying on time don't renew the lease
2 Reply
Erin ChurchPro Member
Real Estate Agent · North Augusta, SC · Member since 2017 · 254 posts · 233 votes
3y
@Tina Lee
I’m assuming she is a good tenant otherwise.
If you’re viewing this as an opportunity to rehab your property and increase rent significantly, then getting it vacant is a good plan. Obviously keeping in mind that you’ll have to carry the property for a while and do the work or manage the contractors. So, I’d weigh that out in your decision.
Do you get a late fee when she’s late?
If there is no late fee, there’s also the option to amend the lease for Sept 1 putting in a late fee starting on whatever day you want and potentially a daily late fee starting after that. Also, if there needs to be a rent adjustment, that would also go in the new lease. She’d need to sign it of course and I’m not sure how much notice you need to give for your state.
1 Reply
David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
3y
Quote from @Tina Lee:

@Zachary Oberlies, thank you Zachary. Not terrible tenant beside paying rent late every month. No drama. However paying rent late almost every month is pretty bad to a lot landlord already I think.

So, it sounds like the only complaint you have about her is the late rent.
First guess time says her income is dependent upon factors she cannot control - tips and other gratuities, sales commissions, etc., none of which are dependable or guaranteed. She may also have variable expenses beyond her control.
Want your property destroyed? Give her a hard time about it.
Don't want your property destroyed? Patience, compassion and accommodation are in order.
In fact, here's an idea ...
Move her due date from the first to 15th, but find a way to let her think it's still the first. That way, when she pays "late", she's still on time.
You could even combine that with a strategy my former landlord (property manager, really) used to employ: The lease shows that the rent is $xxx, but if paid before the due date there's a $100 discount (incentive = positive motivation; late fees are negative motivation and are less effective).
Another poster suggested you might not be landlord material, and I'm inclined to agree. If she's late, but has not missed a month, you're needlessly getting your own guts in a knot while increasing your efforts and expenses. It's to your own advantage to relax about it and accept the situation as it is. A class in landlording might be helpful to those who get hung up on punctuality to the point of considering legal action (eviction(= increased expenses)).
My $0.02 ...
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Konstantin GinzburgPro Member
Member since 2021 · 376 posts · 242 votes
3y
Personally I do not view rent as late until the 5th of the month, even if the lease states that it is due on the 1st. I make sure this is reflected in my lease. Rent being paid on the 2nd or 3rd each month would not be an issue for me. Mortgage notes are due on the 1st of the month but are not considered late by the bank until the 15th which is when they begin their late fees. I also make sure to outline the consequences of late payments in my lease. I include a late fee after the 5th of each month if the rent is not paid. This provides a financial incentive for tenants to make timely payments and helps minimize late rent. All leases should also directly state when tenant eviction should begin. I generally state that the eviction process will begin on the 15th of each month if rent is not paid prior. Having outlined like this in a lease, makes the process run much smoother. Personally, if the this tenant generally pays before the 3rd except for once or twice a year, but consistently had paid rent for the last 5 years and take good care of the property; then I would keep this tenant in place as long as they are paying market rent and just amend the lease at renewal to include fair late payment terms.
1 Reply
Cody L.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
3y
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 ?

Nope. We just stick by our lease. Late fee on the 4th. Normally $40 then $10/day. We file eviction normally on the 8th-10th. Add that fee to the ledger.

If the tenant keeps paying, they can stay.

Just ran a report. We collected

$201,904.15
in late fees last year. Best day people can pay is the 4th.
1 Reply
Phillip AustinPro Member
Property Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes
3y
@Tina Lee Grace periods can vary state to state. A 3-day grace period for rent is most common. However, here in Colorado, there is a mandatory 7-day grace period! Furthermore, we cannot include unpaid late fees in a demand for nonpayment of rent; meaning we cannot evict for unpaid late fees. Point being, do some research to determine what your grace period should be and how to address late rent.
With that said, for your particular situation, are the "late" payments actually affecting your ability to cover the mortgage? Or is this simply a headache for you each month and you're tired of dealing with it?
If it's just a headache and the tenant is great otherwise, I would let it be.
If it is affecting you financially then, yes, you can provide the tenant a notice of non-renewal and let her know she needs to move out. (If you want a tenant out for ANY reason, you can ALWAYS serve a tenant a notice of non-renewal.)
1 Reply
Jake KnightPro Member
Property Manager · Indianapolis · Member since 2017 · 303 posts · 146 votes
3y
As a lot of people have mentioned, your locality matters, just make sure you have a good awareness of the laws in your area. Any violation of the lease could be grounds for an eviction but it really just depends on the landlord. I wouldn't personally evict someone for being consistently a day late and context matters. I would however factor that into whether or not I renew them at the end of the lease. Also, consider demands for rentals in your area. How much vacancy can you expect and is it worth it?
1 Reply
Vicky L.
Investor · Simi Valley, CA · Member since 2019 · 46 posts · 35 votes
3y
@Tina Lee you have a contract/lease. I was told somewhere that it is bilateral. It should outline your obligations as a Landlord. It says what is considered late and what happens. You must follow through when someone is late beyond the 5th of the month. That means that you should of sent the notice to pay or quit, then if required, notice to evict. When you don't follow the lease, you nullify the lease - potentially a problem in tenant friendly states. Am I wrong?
1 Reply
Shronda Sledge
Member since 2018 · 27 posts · 7 votes
3y
Rent is due on the first and we have a 5 day grace period. After the grace period is up, we enforce the late fees. The next step is filing for evictions.
1 Reply
Rich S.
Central, MN · Member since 2015 · 148 posts · 184 votes
3y
In my world, someone paying and staying, assuming they are a decent tenant is exactly what we are all looking for. If you are worried, put them on a month to month, add late fees and be religious about notifications to protect yourself.
I would guess 95% of investors on this site would take the tenant you are talking about.
1 Reply
Royce Talbo
Investor · Kaneohe, HI · Member since 2012 · 218 posts · 104 votes
3y
Quote from @David Dachtera:

You could even combine that with a strategy my former landlord (property manager, really) used to employ: The lease shows that the rent is $xxx, but if paid before the due date there's a $100 discount (incentive = positive motivation; late fees are negative motivation and are less effective).
How does this work? lets say your PM advertises a unit for $1500, then at the signing says $100 discount for early payment? Wouldn't that lower your tenant pool if the market rent is $1400 and they are advertising over market. If $1500 is market then isnt he losing you $100 a month?
1 Reply
Matt Ziegler
Rental Property Investor · Colorado Springs, CO · Member since 2020 · 433 posts · 284 votes
3y
@Tina Lee. Why don’t you find out the cause for the late payments? Perhaps you can adjust the due date to fit their pay schedule and satisfy both parties?
2 Reply
Tina Lee
OP
Member since 2021 · 199 posts · 42 votes
3y
Hi all, thank you all for your response. I am shocked as well :) appreciate everyone’s time to reply to me. Is is the answer fo most of questions you all asked.
The property is in New York, I about $100-$200 under the market rate, because of current market New York rent has gone up like crazy past two year. I was plan to raise $100 for her lease renewal originally but she is late again this month. It make me having second thoughts of just let her go instead of renewal.
I can only charge $50 late payment. That’s by New York law.
Do we have a area that’s only for landlord in New York to talk. Because some local law I like to find local landlords.
I am surprise everyone can deal with habitual late payment tenant. As we are landlord not debit collectors.
My others tenant all pays on time.
She keep her apartment clean and nice condition. Super went there to fix something in few month ago.And told me that.
Again thank you for your advice
0 Reply
Brady Ferguson
Rental Property Investor · Lubbock, TX · Member since 2021 · 58 posts · 21 votes
3y
If you can replace her with another tenant that is happy to pay rent on time, I would not renew her lease. If you have lots of demand in your area that will make this transitions easier. You want to make sure you vet all potential tenants properly. The last thing you want to do is not renew her lease and then have vacancy.
1 Reply
Eric Mcginn
Real Estate Investor · Chico, CA · Member since 2016 · 248 posts · 105 votes
3y
No
0 Reply
Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
3y
@Royce Talbo it could but when I used a system like this the amount usualy was $25/50 so it didn't really impact who looked at the place. It actually is a good response to people who say it is a little high. You don't negotiate the rent so much as the payment timing. people like to hear the word you get a discount.
1 Reply
Jake KnightPro Member
Property Manager · Indianapolis · Member since 2017 · 303 posts · 146 votes
3y
Quote from @Shronda Sledge:

Rent is due on the first and we have a 5 day grace period. After the grace period is up, we enforce the late fees. The next step is filing for evictions.

We also had it structured this way for a long time. We had done market research that suggested that it shouldn't matter whether or not you provide grace periods. The PM sets the table with the lease. That being said, there isn't anything wrong with this model. Our goal was to get money back to the property owner as soon as possible so we changed it do due on the 1st (w/no grace period).
1 Reply
Doug Spence
Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
3y
@Tina Lee Have you been collecting late fees from her every time? If not, that is something you should have in the lease and should enforce every time she is late - even if she is only one day late.
My vote is to not renew the lease with her and get a new tenant! She's not holding up her end of the deal as a tenant.
Good luck and let us know what you decide to do!
1 Reply
Luka Milicevic
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
3y
My first rental ever I bought in 2015. Same tenants still live there.
I'd say 4 out of 12 months a year they pay late.
They have paid their late fees each month.
Why would I kick them out if they are consistently paying, even if it's late some months.
If I had to start some process of "kicking tenants out" for consistent late payments, I'd be doing that a lot.
1 Reply
Account Closed
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
3y
@Tina Lee
If she's a good tenant, collect the late fee every month and leave it at that. For me, I love the extra $50 a month.
The cost of a vacancy (assuming you'll have to spend money on repairs, holding costs, etc. to get the next tenant in) may not be worth it.
My two cents.
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