I need some suggestions on how to handle a situation with my tenants. This is my first investment property in a C class neighborhood, and I thought I had some good tenants, but there have been 3 late payments for rent in the 5 months they have been leasing my rental. They signed the lease in March 2024.

The first time they were late it was a couple of days past the 1st but within the 5 day grace period……Ok.

The second time, they notified me on the 5th that they wouldn’t be able to pay until the 12th. I charged them all the late fees and I was not happy and expressed my concerns, but I did get paid on the 12th.

Now, this 3rd time for this month of August, the boyfriend contacted me a day or two before the 1st and said they would not have the rent until the 9th of August. I told him that I would charge him the same fees as before. $50 late fee after the 5th and $5 fees each day late.

Today, is the 9th, and I just received a text from the gf asking me if they could pay this Monday the 12th because something is going on with her account for fraud and she has to go to her bank on Monday. She also asked if I could waive late fees until Monday. Each day like I mentioned is $5.

I want to respond with something like…

This is becoming a recurring problem and it seems to me like you all are not able to afford my rental. You have been late with the rent three times in the five months you have been living there. I am not waiving any late fees. Perhaps, it is best that we terminate the lease because I can’t continue accepting late payments until the lease is up.

Also, let’s say they are late with the rent every month until the lease expires, but they pay. Would you get them out of there when the lease expires? TIA.

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Lender
Savoy, TX

Dustin Tucker

Lender

Lender
Savoy, TX

Replied August 09, 2024 15:48

Hello Cherilyn,

I think you have a couple of options, the good news is that they are paying you, the better news is that you are collecting late fees.

1. If you go file for an eviction and they show up and pay their lease, they get to stay in the property.

2. One option you might try is to go to Bi- Weekly Payments, this way you collect on the same cycle as their paychecks.

As long as both of your tenants still have their jobs, I would ride it out, the 2nd thing is how are they maintaining the property, are you going to have to spend thousands of dollars on repairs because of damage to the property. Hope this helps.

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George Red

Replied August 09, 2024 17:38

My 2 cents...

I faced a similar situation in a unit I lease. The tenant (inherited) habitually paid late and I just let it go at first because she always paid. Rent kept coming later and later in the month so I reached out to connect with her and shared the expectation that starting the month after next I expected rent in accordance with the lease or I would begin enforcing late penalties. I gave her some runway to get her finances in order and although she can be a bit of a squeaky wheel, she pays on time for the past 2 months.

As the person is still paying, I would just stay on them about the late payments, collect the late fees and inspect the property to be sure they're not damaging the inside. Assuming they're on an annual lease, I would not renew and go month to month at the end of the lease. As long as they're paying and not damaging the property I would take that over having to turn the unit, handle a vacancy and then trying to find a better tenant in said C area. A paying bird in hand so to speak... as long as they're taking care of the unit and paying. Ultimately it may be too pricey for them but they've already moved in, I'd ride that train until they got there. The turn cost and placement will be the same... you'll just get rent from now until then. Caveat being as long as they're taking care of the unit. Hope that helps, LMK if you have any other thoughts or questions.

- G

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