Would you kick someone out if she keep paying rent late
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Melanie ThomasBusiness Member
Real Estate Broker 路 San Antonio 路 Member since 2022 路 1k+ posts 路 491 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
- Rental Property Investor 路 Rockford, IL 路 Member since 2014 路 4k+ posts 路 2k+ votes3y
Quote from @Royce Talbo:
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?
It's written in the lease that the rent is - using your example - $1,500 and that you get a $100 discount for paying on or before the due date.
Here's the logic: late fees, etc. require infrastructure and expenses. Also, if you have to take a tenant to court, the judge will award you back rent, but not late fees.
;-)
- Investor 路 Kaneohe, HI 路 Member since 2012 路 218 posts 路 104 votes3y
Quote from @Colleen F.:
@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.
$25 is more reasonable, but @David Dachtera said $100 discount thats $1200 a year. to me that is not worth it as i have only had 3 late payments in the past 10 years. 1 due to medical issues and forgot paid immediately, 1 due to covid and was a restaurant worker, and 1 because lease expired and they didnt update the autopay for the new lease.
@David Dachtera nice to know about the court thing. Maybe because i dont have a lot of properties that I am in a different situation that I never had to deal with this or maybe its the difference in markets that i am not understanding this. what exactly is the added infrastructure and expenses? does the expenses avoided actually equal the lost rent due to the discount? I understand that its written in the lease that there is a discount from paying on time or early, but this doesnt address the issue of either lowering tenant pool or losing $100/month. was the $100 just a number you threw out or is that what they really use?sorry im a numbers guy, so ill give another example, please correct me or give an example of the numbers how it works out so i can better understand. not sure what expenses this saves you from, but lets say this happens to 5% of your units and you have 20 units. at $100 per month per unit, thats $24,000/year lost to avoid expenses. 5%(1 unit) of the 20 units fails to pay rent and you have to go through the whole process of evicting. is that 1 unit equal the $24k lost?
Thank you all, I just don鈥檛 undestand what鈥檚 the point to collect $50 and be frustrated every month. Worried about when tenant will pay. To me is not worth it.
Yes I rather keep place 3-6 month vacant and look for a highly qualified tenant. To me I rather make little less than having deal with a tenant who pay rent habitually late.
The late payment frustrated me a lot.
- Rental Property Investor 路 Rockford, IL 路 Member since 2014 路 4k+ posts 路 2k+ votes3y
Quote from @Royce Talbo:
Quote from @Colleen F.:
@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.
$25 is more reasonable, but @David Dachtera said $100 discount thats $1200 a year. to me that is not worth it as i have only had 3 late payments in the past 10 years. 1 due to medical issues and forgot paid immediately, 1 due to covid and was a restaurant worker, and 1 because lease expired and they didnt update the autopay for the new lease.
@David Dachtera nice to know about the court thing. Maybe because i dont have a lot of properties that I am in a different situation that I never had to deal with this or maybe its the difference in markets that i am not understanding this. what exactly is the added infrastructure and expenses? does the expenses avoided actually equal the lost rent due to the discount? I understand that its written in the lease that there is a discount from paying on time or early, but this doesnt address the issue of either lowering tenant pool or losing $100/month. was the $100 just a number you threw out or is that what they really use?sorry im a numbers guy, so ill give another example, please correct me or give an example of the numbers how it works out so i can better understand. not sure what expenses this saves you from, but lets say this happens to 5% of your units and you have 20 units. at $100 per month per unit, thats $24,000/year lost to avoid expenses. 5%(1 unit) of the 20 units fails to pay rent and you have to go through the whole process of evicting. is that 1 unit equal the $24k lost?
There is no "lost" rent. The only numbers which can be considered "lost" are the late fees you didn't impose because the incentive convinced the tenants to pay early / on-time.
The "Added infrastructure and expenses" are the staff's (or your) time to handle the eviction filings and any related legal / court / etc. fees associated with that activity.
It also provides a "work-around" (where permitted) in those jurisdictions where late fees are limited to lower amounts.
$100 is the real number. I can put you in touch with my former landlord (he's not a denizen of BP), if you think that would help.
- Contractor 路 Chicago, IL 路 Member since 2016 路 4k+ posts 路 2k+ votes3y
Hi there @Tina Lee - It sounds like you have a Chicago tenant who is consistently late on rent payments which isn't uncommon. What area is your property in?
This is a breach of contract, and you have the right to evict her if she continues to do so. However, since she has been a tenant for 5 years, you may want to give her a chance to improve her payment history. You could start by sending her a written notice reminding her of the terms of her lease and the consequences of late payments. If she continues to be late, you could then send her a notice of eviction.
As for whether or not she will be upset and destroy your property, it is impossible to say for sure. However, if you handle the situation professionally and respectfully, the chances of this happening are slim.
Quality Builders4.970 Reviews - Real Estate Broker 路 Chicago, IL 路 Member since 2014 路 3k+ posts 路 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鈥檛 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 ?
I can't advise on whether or not the tenant will destroy your property but I would send a new lease effective 1 September that includes clear language showing the due date; a late date with a late fee & the conditions under which you'll evict the tenant. Reading between the lines of your post it sounds like your lease may not have a provision for a late fee. Considering the tenant has been with you for 5 years I'd go that route first in lieu of not renewing or offering a new lease.
- Real Estate Broker 路 Hyde Park Tampa, FL 路 Member since 2019 路 2k+ posts 路 3k+ votes3y
Yes...find someone who will respect you as a landlord and your lease.
$100 under market and 2 late payments in 5 years.....and LATE isnt until after the 5th ......and you want to force a vacancy and turnover cost?
Ok......if your frustration level is high enough to cost yourself thousands of dollars...and the time and effort to find another tenant that may or may not be worse.... then that's your choice. To each his own
@Tina Lee.... that's what your post states..... unless you are considering ANYTHING after the 1st as "late".....
Most LL, and states/courts etc, consider it "late" after a grace period.....often on the 6th......if you consider anything after the 1st as being " late", you are nuts....but its your choice.... you do you.....
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