Partial payment of rent
Good morning,
I would appreciate advice as I am a relatively new rental property owner. I signed a lease with a tenant for one year. The rent is due by the 3rd of each month with late penalty of $100 on day 4 and $15/day thereafter.
The tenant paid on time for the first 4 months ($2595). This month she made a partial payment on the 2nd, short by $200, with no explanation. I immediately sent an email after receiving the bank text notification of the deposit, seeing it was short. Her reply was a brief - "Hello, I am aware it wasn't sent in full. I sent as much as I could until my Zelle limit resets."
I'm not sure what to make of this. The full rent is due today. I am concerned about this becoming an ongoing issue and future delays/nonpayment of rent. I would appreciate advice on how to handle this situation. Thank you
Most Popular Reply
Well, first of all, follow your lease. Apply the $100 late fee and the $15/day thereafter as normal. It's probably not going to be an issue with this resident. We had one resident pay 3 days late every month. They effectively gave themselves a $100/mo rent increase.
We never accept partial payments. It sounds like you have your residents deposit directly into your bank account. This could create a potential issue for you in the future. If you start an eviction proceeding and then accept a partial payment, in most jurisdiction that invalidates the eviction proceedings and you would have to start over with a demand for payment and then filing eviction again. Tenants that know the game could pay you $100 every two weeks to continue delaying the eviction.