Question for both small-portfolio owners who use property managers and PMs themselves. During a mid-month review of my portfolio, a tenant payment had not been received. It got me thinking about something I’ve never really established a clear expectation around: At what point should a property manager proactively notify the owner that rent hasn’t been received? I understand that collecting rent and handling routine late payments is part of property management, and I don’t necessarily need to know the day after rent is late. But at some point, I would expect communication that includes more than just “rent hasn’t been paid.” For example: • Has the PM contacted the tenant? • Has the tenant given a reason or committed to a payment date? • Has a late fee been assessed? • Has a formal notice been sent? • Is this becoming something the owner should be aware of or make a decision about? I’m curious where others draw that line. Owners: Does your PM proactively notify you about delinquent rent? If so, when — after the grace period, when a late fee is assessed, when notice is served, or only when the situation escalates? Property managers: What is your normal practice? At what point do you believe an owner should be notified rather than allowing the PM to continue handling it as routine collection activity? I’m especially interested in practices for small rental portfolios, where one missing rent payment can be meaningful to monthly cash flow. Also curious whether AppFolio or other PM software can automate an owner notification when rent remains unpaid after a specified date.

That makes a lot of sense. The owner distribution date is probably a much better trigger than simply saying day 5 or day 7. The key is giving the owner the full picture before they even have to ask what happened. I like your point that the update should also prepare the owner for what may happen next, rather than just creating another notification. That’s a much more useful workflow.

Greg, this is helpful. In my case, the PM already contacts me before an eviction is filed and we make that decision together, so I have good visibility at that stage. What I'm trying to determine is whether there should be an earlier communication trigger between routine late-rent collection and the point where we're discussing eviction. I don't need every tenant promise or collection attempt, and I can see the payment status in AppFolio. I'm leaning toward a simple exception-based approach: let the PM handle normal collection activity, but proactively notify me when something about the delinquency indicates it may no longer be routine. Your point about all the noise before eviction is useful. I may be trying to define exactly where the signal begins to outweigh the noise.

We've built our systems and procedures to consistently update owners and allow them input. While we work for our clients, we do have more experience than they do. So, we sometimes have challenges with owners wanting to be too nice and slowing us down. While it is their property and their ultimate decision, we aggressively challenge them because when it doesn't go well - they still often find a way to make us the scapegoat😞

Late Rent: When Should the Owner Be Notified?

Joliet, Illinois

General Real Estate Investing

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Late Rent: When Should the Owner Be Notified?

Alison Robinson

Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes

Question for both small-portfolio owners who use property managers and PMs themselves.

During a mid-month review of my portfolio, a tenant payment had not been received. It got me thinking about something I’ve never really established a clear expectation around:

At what point should a property manager proactively notify the owner that rent hasn’t been received?

I understand that collecting rent and handling routine late payments is part of property management, and I don’t necessarily need to know the day after rent is late.

But at some point, I would expect communication that includes more than just “rent hasn’t been paid.” For example:

Has the PM contacted the tenant?
Has the tenant given a reason or committed to a payment date?
Has a late fee been assessed?
Has a formal notice been sent?
Is this becoming something the owner should be aware of or make a decision about?

I’m curious where others draw that line.

Owners: Does your PM proactively notify you about delinquent rent? If so, when — after the grace period, when a late fee is assessed, when notice is served, or only when the situation escalates?

Property managers: What is your normal practice? At what point do you believe an owner should be notified rather than allowing the PM to continue handling it as routine collection activity?

I’m especially interested in practices for small rental portfolios, where one missing rent payment can be meaningful to monthly cash flow.

Also curious whether AppFolio or other PM software can automate an owner notification when rent remains unpaid after a specified date.

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

2mo

Quote from @Alison Robinson:

Question for both small-portfolio owners who use property managers and PMs themselves.

During a mid-month review of my portfolio, a tenant payment had not been received. It got me thinking about something I’ve never really established a clear expectation around:

At what point should a property manager proactively notify the owner that rent hasn’t been received?

I understand that collecting rent and handling routine late payments is part of property management, and I don’t necessarily need to know the day after rent is late.

But at some point, I would expect communication that includes more than just “rent hasn’t been paid.” For example:

Has the PM contacted the tenant?
Has the tenant given a reason or committed to a payment date?
Has a late fee been assessed?
Has a formal notice been sent?
Is this becoming something the owner should be aware of or make a decision about?

I’m curious where others draw that line.

Owners: Does your PM proactively notify you about delinquent rent? If so, when — after the grace period, when a late fee is assessed, when notice is served, or only when the situation escalates?

Property managers: What is your normal practice? At what point do you believe an owner should be notified rather than allowing the PM to continue handling it as routine collection activity?

I’m especially interested in practices for small rental portfolios, where one missing rent payment can be meaningful to monthly cash flow.

Also curious whether AppFolio or other PM software can automate an owner notification when rent remains unpaid after a specified date.

Another example of owners NOT properly screening PMCs and understanding what to expect!

Most PMCs now use some type of PM software - but every quarter we take over a property from a one-man band or mom & pop PMC that don't have PM software or even a website!
- Can't understand why an owner would hire these PMCs!

Most PMC software have MANY auto-alerts to streamline owner communications:
- When rent is received
- When Late Fees are charged
- Past Due Balances
- Many, many more...

A lot of PMCs are also using advanced CRMs that can be customized to generate even more auto-alerts to owners.

BTW: there are also auto-alerts to tenants.

Owners should also consistently receive Owner Statements each month that show Rents Collected.

Via all this, owners should know which tenants have paid and which have not - unless they're NOT paying attention to their email inbox and expect a phone call😒

IMPORTANT
It's our opinion, and business practice, to also inform owners of our communication attempts and eviction steps.

We don't ask owners for permission, we inform them of what is going on and our next steps, "unless we hear otherwise" from an owner.

This is where the expectations of many owner are NOT met!

For some naive and ignorant reasons, owners seem to think that ALL PMCs execute their services EXACTLY the same way😤😤😤

NOT REALITY!

We've taken over so many properties with nonpaying tenants where the previous PMC had no plan to force past due tenants to pay or move. They were simply accepting whatever payments the tenants sent and excuses & promises the tenants made.
- Meanwhile, the tenants' past due balances kept increasing every month.

To have any chance of success getting a tenant back on track with rent payments, you MUST "start the clock" by starting the eviction process and moving the process forward unless the tenant cooperates. Otherwise, desperate tenants will say desperate things and try to stay as long as possible for as little as possible.

NOTE: there is no fool-proof system:( We've had tenants on formal Payment Plans that suddenly gave up after making several months of timely payments. No amount of positive encouragement from our team could reverse their decision😞

DM me if you'd like more feedback.

[email protected]248-209-6824

Logical Property Management4.9460 Reviews

Website View Page

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
2mo
In most PM systems the rent collection process should have been largely automated, including these items:
- Notifying the tenant that rent is due
- Assessing late fees
- Notifying the tenant that late fees were assessed
- Sending formal notice
- Initiating eviction proceedings
- Notifying the tenant that eviction proceedings have begun and that filing fees have been added to their ledger

Most PMs will also call to talk with the tenant once rent is late.

Based on experience, I would not put stock in anything a tenant says about when they are going to pay. Either they will or they won't. A substantial portion will say anything they think will delay eviction filings. Another group seems to always pay, but always pay after a late fee is assessed. (I have no idea why.)

I see the critical date as eviction filing. Before that time, there is so much noise, so many promises, or no communication at all. Once you get to eviction filing, your chance of collecting rent drops to somewhere around 50%. Before then, you never know.

If you have read-only access to the PM system (e.g. Appfolio) you can log in and see the status of rent at any given time.

3 Reply

Alison Robinson
OP
Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes
2mo
Quote from @Greg Scott:
In most PM systems the rent collection process should have been largely automated, including these items:
- Notifying the tenant that rent is due
- Assessing late fees
- Notifying the tenant that late fees were assessed
- Sending formal notice
- Initiating eviction proceedings
- Notifying the tenant that eviction proceedings have begun and that filing fees have been added to their ledger
Most PMs will also call to talk with the tenant once rent is late.
Based on experience, I would not put stock in anything a tenant says about when they are going to pay. Either they will or they won't. A substantial portion will say anything they think will delay eviction filings. Another group seems to always pay, but always pay after a late fee is assessed. (I have no idea why.)
I see the critical date as eviction filing. Before that time, there is so much noise, so many promises, or no communication at all. Once you get to eviction filing, your chance of collecting rent drops to somewhere around 50%. Before then, you never know.
If you have read-only access to the PM system (e.g. Appfolio) you can log in and see the status of rent at any given time.
Greg, I do have AppFolio access, and my current practice is to do a mid-month review. That’s usually how I identify late or unpaid rent, and then I reach out to the PM for status.
Your response has me thinking about where the line should be. I agree the routine collection process should largely be automated. But with a full-service PM, should proactively notifying the owner when a tenant remains delinquent past an agreed point also be considered part of the normal management fee?
I can monitor AppFolio, but ideally I’d like the PM to flag the exception rather than have me discover it and ask.

1 Reply
Alison Robinson
OP
Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes
2mo
Quote from @Greg Scott:
In most PM systems the rent collection process should have been largely automated, including these items:
- Notifying the tenant that rent is due
- Assessing late fees
- Notifying the tenant that late fees were assessed
- Sending formal notice
- Initiating eviction proceedings
- Notifying the tenant that eviction proceedings have begun and that filing fees have been added to their ledger
Most PMs will also call to talk with the tenant once rent is late.
Based on experience, I would not put stock in anything a tenant says about when they are going to pay. Either they will or they won't. A substantial portion will say anything they think will delay eviction filings. Another group seems to always pay, but always pay after a late fee is assessed. (I have no idea why.)
I see the critical date as eviction filing. Before that time, there is so much noise, so many promises, or no communication at all. Once you get to eviction filing, your chance of collecting rent drops to somewhere around 50%. Before then, you never know.
If you have read-only access to the PM system (e.g. Appfolio) you can log in and see the status of rent at any given time.

Greg, this is helpful. In my case, the PM already contacts me before an eviction is filed and we make that decision together, so I have good visibility at that stage.

What I'm trying to determine is whether there should be an earlier communication trigger between routine late-rent collection and the point where we're discussing eviction. I don't need every tenant promise or collection attempt, and I can see the payment status in AppFolio.

I'm leaning toward a simple exception-based approach: let the PM handle normal collection activity, but proactively notify me when something about the delinquency indicates it may no longer be routine.

Your point about all the noise before eviction is useful. I may be trying to define exactly where the signal begins to outweigh the noise.

1 Reply

Richard F.

Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes

2mo

Contacting the owner after a late rent, or at/after the point of filing eviction is WAY too late.

First of all, the owner should be made well aware of the late fee/eviction process from the outset of the management relationship. As @Greg Scott stated, the process itself should be automatic (at least up to actual filing).

A conversation should occur with owner if an established tenant is, or has become, problematic with one or more significant lates (a week, maybe 10 days past due date depending on how the calendar falls; or partial payments with a "promise"). Depending on the actual costs of eviction in your market, an owner might want to consider options sooner rather than later.

I will always work towards a no cost move out when someone is unhappy, or loses a job, or has other major events in their life that will not get fixed in a month or two. Evictions are far too costly here.

If, OTOH, we inherited some undesirable tenants, we would have already had the "eviction" conversation with the owner, and have an established plan to do so.

The key, of course, is to ensure your screening and tenant management keeps the losers out in the first place, while still placing quality tenants within a reasonable time.

1 Reply

Alison Robinson
OP
Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes
2mo
Quote from @Richard F.:

Contacting the owner after a late rent, or at/after the point of filing eviction is WAY too late.
First of all, the owner should be made well aware of the late fee/eviction process from the outset of the management relationship. As @Greg Scott stated, the process itself should be automatic (at least up to actual filing).
A conversation should occur with owner if an established tenant is, or has become, problematic with one or more significant lates (a week, maybe 10 days past due date depending on how the calendar falls; or partial payments with a "promise"). Depending on the actual costs of eviction in your market, an owner might want to consider options sooner rather than later.
I will always work towards a no cost move out when someone is unhappy, or loses a job, or has other major events in their life that will not get fixed in a month or two. Evictions are far too costly here.
If, OTOH, we inherited some undesirable tenants, we would have already had the "eviction" conversation with the owner, and have an established plan to do so.
The key, of course, is to ensure your screening and tenant management keeps the losers out in the first place, while still placing quality tenants within a reasonable time.
Richard, this is very close to where I'm landing. I don't need notification every time rent crosses the due date or grace period. That's routine collection activity and I expect the PM to handle it.

The 7–10 day point for an established tenant, particularly if there is a change in payment pattern or partial payments begin, seems like a reasonable exception trigger for proactive owner communication.

My PM already contacts me before an eviction is filed and we make that decision together. What I hadn't clearly established was the communication expectation between routine collection and that point.

I think that's the gap I'm trying to close.

0 Reply

Divin KanyamaBusiness Member

Accountant · Seattle, WA · Member since 2025 · 470 posts · 194 votes

2mo

As a small-portfolio owner, I’d expect my PM to handle the first few days as routine collection, but I would want proactive notice once the grace period has passed or a late fee/formal notice is triggered. At that point, the update should include whether the tenant has been contacted, any reason given, a promised payment date if there is one, whether fees or notices have been issued, and the next step if payment still doesn’t come in. One missed rent payment can matter for cash flow, so I don’t need to be involved immediately, but I do want a clear escalation point and timeline agreed to in advance. I’d also ask the PM whether AppFolio can send automated owner alerts after rent remains unpaid past a set date.

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Alison Robinson
OP
Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes
2mo
Quote from @Divin Kanyama:

As a small-portfolio owner, I’d expect my PM to handle the first few days as routine collection, but I would want proactive notice once the grace period has passed or a late fee/formal notice is triggered. At that point, the update should include whether the tenant has been contacted, any reason given, a promised payment date if there is one, whether fees or notices have been issued, and the next step if payment still doesn’t come in. One missed rent payment can matter for cash flow, so I don’t need to be involved immediately, but I do want a clear escalation point and timeline agreed to in advance. I’d also ask the PM whether AppFolio can send automated owner alerts after rent remains unpaid past a set date.
Divin, this is very close to the process I’m looking to establish with my PM. I don’t need to be involved in routine collections, but I do want a defined escalation point once the grace period has passed, along with the tenant communication, expected payment date, and next steps.
It’s helpful to hear that other owners have similar expectations. I also like the idea of an automated AppFolio alert, it could make the process consistent without adding much work for the PM.

1 Reply

Janice Carter

Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 607 votes

2mo

@Alison Robinson It really depends on the property management agreement and the communication expectations established between the owner and PM. In my opinion, once the grace period has expired and the PM has contacted the tenant, the owner should be notified of the delinquency, the tenant’s response and what action is being taken next.

2 Reply

Alison Robinson
OP
Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes
2mo
Quote from @Janice Carter:

@Alison Robinson It really depends on the property management agreement and the communication expectations established between the owner and PM. In my opinion, once the grace period has expired and the PM has contacted the tenant, the owner should be notified of the delinquency, the tenant’s response and what action is being taken next.
Janice, I agree. The key seems to be establishing the communication expectation with the PM in advance. Grace period expired, tenant contacted, then owner notified with the tenant’s response and next steps.
That’s the process I’m looking to establish with my PM, and it’s helpful to hear similar expectations from both owners and PMs.

0 Reply
Donyea JenkinsPro Member
Member since 2022 · 40 posts · 18 votes
2mo
Quote from @Janice Carter:

@Alison Robinson It really depends on the property management agreement and the communication expectations established between the owner and PM. In my opinion, once the grace period has expired and the PM has contacted the tenant, the owner should be notified of the delinquency, the tenant’s response and what action is being taken next.

Perfect response. Owners hire PM companies so they don't have to worry about day to day. Grace period is a day to day issue BUT once that has passed, it triggers another set of process that the owner should be notified are in play. Depending on the history of the resident, this is when you have that conversation of how far do you want to go with this and does it make financial sense based on the payment history of this resident AND what state you live in.
1 Reply

Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

2mo

On the 10th I get my statement and money. It will show who paid, who paid too close to the 10th for me to paid on the 10th, and who hasn’t submitted payment yet. In Vegas no late fees can be charged until the 3rd, and the 7 day pay or quit only counts judicial work days. So for those who haven’t paid, nothing is concrete by then.

I’ve only had one eviction started, and one “middle of the night move out” which I found out on I think around the 20th. I’ve been pretty happy with the communication. I wouldn’t hate an email saying we’ve received payment from tenant x for payments made after due date. But I could certainly see it being a bigger deal if I had a lower class of tenant that I often had to evict. Slightly late payments made up before the end of the month don’t bother me that much if they are rare.

Ps. I didn’t notice the question about late fee notices to owner but in my case it’s automatically assessed, so there’s no need for that notice. And they will be on the statement and must be paid before rent is accepted.

1 Reply

Alison Robinson
OP
Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes
2mo
Quote from @Bill B.:

On the 10th I get my statement and money. It will show who paid, who paid too close to the 10th for me to paid on the 10th, and who hasn’t submitted payment yet. In Vegas no late fees can be charged until the 3rd, and the 7 day pay or quit only counts judicial work days. So for those who haven’t paid, nothing is concrete by then.

I’ve only had one eviction started, and one “middle of the night move out” which I found out on I think around the 20th. I’ve been pretty happy with the communication. I wouldn’t hate an email saying we’ve received payment from tenant x for payments made after due date. But I could certainly see it being a bigger deal if I had a lower class of tenant that I often had to evict. Slightly late payments made up before the end of the month don’t bother me that much if they are rare.
Ps. I didn’t notice the question about late fee notices to owner but in my case it’s automatically assessed, so there’s no need for that notice. And they will be on the statement and must be paid before rent is accepted.
Bill, this is helpful. It sounds like your statement on the 10th effectively serves as an early notification point, so you already know who hasn't paid without needing separate communication from the PM.

I agree that an occasional late payment that gets resolved isn't necessarily a major concern. I've started doing a mid-month AppFolio review to identify anything still outstanding and then look at the tenant's payment history to determine whether it's an isolated event or part of a pattern.

Your experience is a good reminder that the right process probably depends partly on how and when the PM already provides owners visibility.

1 Reply

Shiloh LundahlPro Member

Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes

2mo

@Alison Robinson obviously timeframe depend on your state. But I agree with what @Greg Scott stated that most property management should be automated. And if the property managers follow their procedures then you should already know when someone hasn't paid the rent and what they are doing about it. Having a half month statement should answer all your questions. You don't really need to hear the reasons why people aren't paying rent if you want to apply the same standard across-the-board. You should just have the property managers follow through with their procedures and then they inform me about it

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1 Reply

Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

2mo

Quote from @Alison Robinson:

Question for both small-portfolio owners who use property managers and PMs themselves.

During a mid-month review of my portfolio, a tenant payment had not been received. It got me thinking about something I’ve never really established a clear expectation around:

At what point should a property manager proactively notify the owner that rent hasn’t been received?

I understand that collecting rent and handling routine late payments is part of property management, and I don’t necessarily need to know the day after rent is late.

But at some point, I would expect communication that includes more than just “rent hasn’t been paid.” For example:

Has the PM contacted the tenant?
Has the tenant given a reason or committed to a payment date?
Has a late fee been assessed?
Has a formal notice been sent?
Is this becoming something the owner should be aware of or make a decision about?

I’m curious where others draw that line.

Owners: Does your PM proactively notify you about delinquent rent? If so, when — after the grace period, when a late fee is assessed, when notice is served, or only when the situation escalates?

Property managers: What is your normal practice? At what point do you believe an owner should be notified rather than allowing the PM to continue handling it as routine collection activity?

I’m especially interested in practices for small rental portfolios, where one missing rent payment can be meaningful to monthly cash flow.

Also curious whether AppFolio or other PM software can automate an owner notification when rent remains unpaid after a specified date.

Another example of owners NOT properly screening PMCs and understanding what to expect!

Most PMC software have MANY auto-alerts to streamline owner communications:
- When rent is received
- When Late Fees are charged
- Past Due Balances
- Many, many more...

A lot of PMCs are also using advanced CRMs that can be customized to generate even more auto-alerts to owners.

BTW: there are also auto-alerts to tenants.

Owners should also consistently receive Owner Statements each month that show Rents Collected.

Via all this, owners should know which tenants have paid and which have not - unless they're NOT paying attention to their email inbox and expect a phone call😒

IMPORTANT
It's our opinion, and business practice, to also inform owners of our communication attempts and eviction steps.

We don't ask owners for permission, we inform them of what is going on and our next steps, "unless we hear otherwise" from an owner.

This is where the expectations of many owner are NOT met!

For some naive and ignorant reasons, owners seem to think that ALL PMCs execute their services EXACTLY the same way😤😤😤

NOT REALITY!

DM me if you'd like more feedback.

[email protected]248-209-6824

Logical Property Management4.9460 Reviews

Website View Page

5 Reply

Alison Robinson
OP
Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes
2mo
Quote from @Drew Sygit:
Quote from @Alison Robinson:

Question for both small-portfolio owners who use property managers and PMs themselves.

During a mid-month review of my portfolio, a tenant payment had not been received. It got me thinking about something I’ve never really established a clear expectation around:

At what point should a property manager proactively notify the owner that rent hasn’t been received?

I understand that collecting rent and handling routine late payments is part of property management, and I don’t necessarily need to know the day after rent is late.

But at some point, I would expect communication that includes more than just “rent hasn’t been paid.” For example:

Has the PM contacted the tenant?

Has the tenant given a reason or committed to a payment date?

Has a late fee been assessed?

Has a formal notice been sent?

Is this becoming something the owner should be aware of or make a decision about?

I’m curious where others draw that line.

Owners: Does your PM proactively notify you about delinquent rent? If so, when — after the grace period, when a late fee is assessed, when notice is served, or only when the situation escalates?

Property managers: What is your normal practice? At what point do you believe an owner should be notified rather than allowing the PM to continue handling it as routine collection activity?

I’m especially interested in practices for small rental portfolios, where one missing rent payment can be meaningful to monthly cash flow.

Also curious whether AppFolio or other PM software can automate an owner notification when rent remains unpaid after a specified date.

Another example of owners NOT properly screening PMCs and understanding what to expect!
Most PMCs now use some type of PM software - but every quarter we take over a property from a one-man band or mom & pop PMC that don't have PM software or even a website!
- Can't understand why an owner would hire these PMCs!
Most PMC software have MANY auto-alerts to streamline owner communications:
- When rent is received
- When Late Fees are charged
- Past Due Balances
- Many, many more...
A lot of PMCs are also using advanced CRMs that can be customized to generate even more auto-alerts to owners.
BTW: there are also auto-alerts to tenants.
Owners should also consistently receive Owner Statements each month that show Rents Collected.
Via all this, owners should know which tenants have paid and which have not - unless they're NOT paying attention to their email inbox and expect a phone call😒
IMPORTANT
It's our opinion, and business practice, to also inform owners of our communication attempts and eviction steps.
We don't ask owners for permission, we inform them of what is going on and our next steps, "unless we hear otherwise" from an owner.
This is where the expectations of many owner are NOT met!
For some naive and ignorant reasons, owners seem to think that ALL PMCs execute their services EXACTLY the same way😤😤😤
NOT REALITY!
We've taken over so many properties with nonpaying tenants where the previous PMC had no plan to force past due tenants to pay or move. They were simply accepting whatever payments the tenants sent and excuses & promises the tenants made.
- Meanwhile, the tenants' past due balances kept increasing every month.
To have any chance of success getting a tenant back on track with rent payments, you MUST "start the clock" by starting the eviction process and moving the process forward unless the tenant cooperates. Otherwise, desperate tenants will say desperate things and try to stay as long as possible for as little as possible.
NOTE: there is no fool-proof system:( We've had tenants on formal Payment Plans that suddenly gave up after making several months of timely payments. No amount of positive encouragement from our team could reverse their decision😞
DM me if you'd like more feedback.
Drew, I appreciate the lesson on owner statements and PM software. I do, in fact, review both, which is how I identified the unpaid rent during my mid-month portfolio review.
My portfolio has historically had a very high collection rate, so the question wasn’t “How do I know whether my tenants paid?” It was what communication standard other experienced owners and PMs use when a normally routine collection issue starts becoming something the owner should know about.
An automated past-due alert tells me there is a balance. It doesn’t tell me whether the tenant has been contacted, what they said, whether there is a payment commitment, or whether the PM sees a developing problem. That distinction was the point of my question.
I do agree with one thing in your response: owners shouldn’t assume all PM companies operate the same way. Establishing exactly these kinds of expectations is part of actively managing the manager.
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
2mo
Quote from @Alison Robinson:
Quote from @Drew Sygit:

Quote from @Alison Robinson:

Question for both small-portfolio owners who use property managers and PMs themselves.

During a mid-month review of my portfolio, a tenant payment had not been received. It got me thinking about something I’ve never really established a clear expectation around:

At what point should a property manager proactively notify the owner that rent hasn’t been received?

I understand that collecting rent and handling routine late payments is part of property management, and I don’t necessarily need to know the day after rent is late.

But at some point, I would expect communication that includes more than just “rent hasn’t been paid.” For example:

Has the PM contacted the tenant?

Has the tenant given a reason or committed to a payment date?

Has a late fee been assessed?

Has a formal notice been sent?

Is this becoming something the owner should be aware of or make a decision about?

I’m curious where others draw that line.

Owners: Does your PM proactively notify you about delinquent rent? If so, when — after the grace period, when a late fee is assessed, when notice is served, or only when the situation escalates?

Property managers: What is your normal practice? At what point do you believe an owner should be notified rather than allowing the PM to continue handling it as routine collection activity?

I’m especially interested in practices for small rental portfolios, where one missing rent payment can be meaningful to monthly cash flow.

Also curious whether AppFolio or other PM software can automate an owner notification when rent remains unpaid after a specified date.

Another example of owners NOT properly screening PMCs and understanding what to expect!
Most PMCs now use some type of PM software - but every quarter we take over a property from a one-man band or mom & pop PMC that don't have PM software or even a website!
- Can't understand why an owner would hire these PMCs!
Most PMC software have MANY auto-alerts to streamline owner communications:
- When rent is received
- When Late Fees are charged
- Past Due Balances
- Many, many more...
A lot of PMCs are also using advanced CRMs that can be customized to generate even more auto-alerts to owners.
BTW: there are also auto-alerts to tenants.
Owners should also consistently receive Owner Statements each month that show Rents Collected.
Via all this, owners should know which tenants have paid and which have not - unless they're NOT paying attention to their email inbox and expect a phone call😒
IMPORTANT
It's our opinion, and business practice, to also inform owners of our communication attempts and eviction steps.
We don't ask owners for permission, we inform them of what is going on and our next steps, "unless we hear otherwise" from an owner.
This is where the expectations of many owner are NOT met!
For some naive and ignorant reasons, owners seem to think that ALL PMCs execute their services EXACTLY the same way😤😤😤
NOT REALITY!
We've taken over so many properties with nonpaying tenants where the previous PMC had no plan to force past due tenants to pay or move. They were simply accepting whatever payments the tenants sent and excuses & promises the tenants made.
- Meanwhile, the tenants' past due balances kept increasing every month.
To have any chance of success getting a tenant back on track with rent payments, you MUST "start the clock" by starting the eviction process and moving the process forward unless the tenant cooperates. Otherwise, desperate tenants will say desperate things and try to stay as long as possible for as little as possible.
NOTE: there is no fool-proof system:( We've had tenants on formal Payment Plans that suddenly gave up after making several months of timely payments. No amount of positive encouragement from our team could reverse their decision😞
DM me if you'd like more feedback.
Drew, I appreciate the lesson on owner statements and PM software. I do, in fact, review both, which is how I identified the unpaid rent during my mid-month portfolio review.
My portfolio has historically had a very high collection rate, so the question wasn’t “How do I know whether my tenants paid?” It was what communication standard other experienced owners and PMs use when a normally routine collection issue starts becoming something the owner should know about.
An automated past-due alert tells me there is a balance. It doesn’t tell me whether the tenant has been contacted, what they said, whether there is a payment commitment, or whether the PM sees a developing problem. That distinction was the point of my question.
I do agree with one thing in your response: owners shouldn’t assume all PM companies operate the same way. Establishing exactly these kinds of expectations is part of actively managing the manager.
Hence why I posted,
"We don't ask owners for permission, we inform them of what is going on and our next steps, "unless we hear otherwise" from an owner."'
[email protected]248-209-6824
Logical Property Management4.9460 Reviews
Website View Page
1 Reply
Alison Robinson
OP
Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes
1mo
Quote from @Drew Sygit:
Quote from @Alison Robinson:

Quote from @Drew Sygit:

Quote from @Alison Robinson:

Question for both small-portfolio owners who use property managers and PMs themselves.

During a mid-month review of my portfolio, a tenant payment had not been received. It got me thinking about something I’ve never really established a clear expectation around:

At what point should a property manager proactively notify the owner that rent hasn’t been received?

I understand that collecting rent and handling routine late payments is part of property management, and I don’t necessarily need to know the day after rent is late.

But at some point, I would expect communication that includes more than just “rent hasn’t been paid.” For example:

Has the PM contacted the tenant?

Has the tenant given a reason or committed to a payment date?

Has a late fee been assessed?

Has a formal notice been sent?

Is this becoming something the owner should be aware of or make a decision about?

I’m curious where others draw that line.

Owners: Does your PM proactively notify you about delinquent rent? If so, when — after the grace period, when a late fee is assessed, when notice is served, or only when the situation escalates?

Property managers: What is your normal practice? At what point do you believe an owner should be notified rather than allowing the PM to continue handling it as routine collection activity?

I’m especially interested in practices for small rental portfolios, where one missing rent payment can be meaningful to monthly cash flow.

Also curious whether AppFolio or other PM software can automate an owner notification when rent remains unpaid after a specified date.

Another example of owners NOT properly screening PMCs and understanding what to expect!
Most PMCs now use some type of PM software - but every quarter we take over a property from a one-man band or mom & pop PMC that don't have PM software or even a website!
- Can't understand why an owner would hire these PMCs!
Most PMC software have MANY auto-alerts to streamline owner communications:
- When rent is received
- When Late Fees are charged
- Past Due Balances
- Many, many more...
A lot of PMCs are also using advanced CRMs that can be customized to generate even more auto-alerts to owners.
BTW: there are also auto-alerts to tenants.
Owners should also consistently receive Owner Statements each month that show Rents Collected.
Via all this, owners should know which tenants have paid and which have not - unless they're NOT paying attention to their email inbox and expect a phone call😒
IMPORTANT
It's our opinion, and business practice, to also inform owners of our communication attempts and eviction steps.
We don't ask owners for permission, we inform them of what is going on and our next steps, "unless we hear otherwise" from an owner.
This is where the expectations of many owner are NOT met!
For some naive and ignorant reasons, owners seem to think that ALL PMCs execute their services EXACTLY the same way😤😤😤
NOT REALITY!
We've taken over so many properties with nonpaying tenants where the previous PMC had no plan to force past due tenants to pay or move. They were simply accepting whatever payments the tenants sent and excuses & promises the tenants made.
- Meanwhile, the tenants' past due balances kept increasing every month.
To have any chance of success getting a tenant back on track with rent payments, you MUST "start the clock" by starting the eviction process and moving the process forward unless the tenant cooperates. Otherwise, desperate tenants will say desperate things and try to stay as long as possible for as little as possible.
NOTE: there is no fool-proof system:( We've had tenants on formal Payment Plans that suddenly gave up after making several months of timely payments. No amount of positive encouragement from our team could reverse their decision😞
DM me if you'd like more feedback.
Drew, I appreciate the lesson on owner statements and PM software. I do, in fact, review both, which is how I identified the unpaid rent during my mid-month portfolio review.
My portfolio has historically had a very high collection rate, so the question wasn’t “How do I know whether my tenants paid?” It was what communication standard other experienced owners and PMs use when a normally routine collection issue starts becoming something the owner should know about.
An automated past-due alert tells me there is a balance. It doesn’t tell me whether the tenant has been contacted, what they said, whether there is a payment commitment, or whether the PM sees a developing problem. That distinction was the point of my question.
I do agree with one thing in your response: owners shouldn’t assume all PM companies operate the same way. Establishing exactly these kinds of expectations is part of actively managing the manager.

Hence why I posted,
"We don't ask owners for permission, we inform them of what is going on and our next steps, "unless we hear otherwise" from an owner."'
I appreciate your perspective as a Property Manager. I hired a PM primarily to handle the day-to-day details. Before retirement, my job demanded a lot of my time and required frequent travel.
I did not, however, hire a PM to delegate my decision-making.
I’ve gained a new appreciation for how collaborative my Property Manager has been. The best way to get my support is to make sure I’m part of the process and involved in the decisions that affect my properties.
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1mo
We've built our systems and procedures to consistently update owners and allow them input.
While we work for our clients, we do have more experience than they do.
So, we sometimes have challenges with owners wanting to be too nice and slowing us down.
While it is their property and their ultimate decision, we aggressively challenge them because when it doesn't go well - they still often find a way to make us the scapegoat😞
[email protected]248-209-6824
Logical Property Management4.9460 Reviews
Website View Page
1 Reply

Janice Carter

Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 607 votes

2mo

@Drew Sygit Absolutely agree. Owners need to thoroughly vet property management companies and clearly understand their policies, communication practices and procedures for handling delinquent rent and evictions. Not all PMCs operate the same and setting expectations upfront is critical to a successful relationship.

1 Reply

G. Brian DavisPro Member

Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 868 votes

2mo

I’d want the PM handling the day-to-day collection, but I’d also want to know fairly quickly when something is starting to become a problem. If rent is late once and the PM is already dealing with it, I probably don’t need a call. But if the tenant isn’t responding or it’s going past the normal grace period, I’d want to know what’s happening and what they’re doing about it. I’d rather have that conversation early than find out a month later that there was a problem.

1 Reply

Richard F.

Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes

2mo

@Alison Robinson, it seems you simply do not trust your PM, which is a different issue. The fact is, the PM cannot "force" a tenant to pay today, rather than tomorrow or the next day, and "contact" with the tenant in any context is not likely to affect the outcome. They (usually) know they are late.

As the saying goes, you can't get blood from a turnip. Relax, let the process play out. Life Happens. Sometimes a tenant will have family issues, or get stuck out of town longer than planned, and, in fact, I personally have worked a couple "regular" jobs in my life where I did NOT get paid on the regular day. One was proven to be a screwup by their Bank, the other was the company going out of business and screwing everyone. It's rare, but it happens.

All I'm saying is don't waste the PM's time grilling them over details that don't matter and are not going to change what actually happens. There is a specific timeline and process to file an eviction that must be followed for each jurisdiction. The whys and wherefores don't matter to the courts. The competent PM has the experience to determine how serious the issue is for the longer term, and take appropriate action.

The rental agreement is usually between the PM and the tenant; and the management agreement between owner and PM, which places most of the responsibility on the PM, other than specific limitations such as max spend for repairs, etc. Of course incurring the often exorbitant legal fees AND lost rent associated with the eviction process absolutely does require a conversation, both prior to actual filing, and post eviction to make adjustments to various processes to prevent a repeat.

If you are not confident in the screening process to begin with, that is another issue also. And certainly, for a recent move in, if late for the first or second month of rent, as a PM they should be all over it, and informing the owner. Otherwise, if you are just operating on a shoestring and a single late rent causes panic, then you should probably take steps to bank some funds for a proper cushion.

By the way, depending on the timing of the monthly reports, is not that uncommon to see a shortage in the reporting month, only to see an overage in the following month when the balance of the rent and the late fee are paid. That first report should show the date the late fee was assessed, and the following month it should show the date late fee and rent balance was paid. Funny thing, I've never had an owner call to ask about the extra money in their account...

For much the same reason, there should be no reason to contact the owner every time a dripping faucet or clogged toilet is reported. These are routine issues, and handled timely with pre-approved vendors. When the invoice is paid from the owner account, they should receive a copy of the paid invoice with the monthly report, which should have adequate details to explain what was done and paid for. The vendor IS paid from the owner account for the clogged toilet, and the tenant gets billed back for the reimbursement, which will show up later depending on how and when they pay. This is all normal. Trust the system. Just be sure you ask about the questions about the various systems before signing the management agreement... Every agreement is different, never assume anything.

0 Reply

Paul Olusola

Technology · Member since 2026 · 83 posts · 27 votes

1mo

Most PMs I’ve spoken with draw the line around day 5–7 after the grace period once a late fee is assessed and the tenant hasn’t responded to outreach. At that point the owner should know what’s been done and what the next step is, not just that rent is missing.

The communication gap is usually the bigger issue than the late payment itself.

That’s actually why we’ve been building software that automatically notifies owners (with the full context contact attempts, late fee status, tenant response, etc.) once rent stays unpaid past a configurable threshold. It keeps the PM focused on collection while giving the owner real-time visibility without constant manual updates.

Curious what threshold other owners would want as the default.

1 Reply

Alison Robinson
OP
Rental Property Investor · Joliet, IL · Member since 2013 · 102 posts · 48 votes
1mo
Quote from @Paul Olusola:

Most PMs I’ve spoken with draw the line around day 5–7 after the grace period once a late fee is assessed and the tenant hasn’t responded to outreach. At that point the owner should know what’s been done and what the next step is, not just that rent is missing.

The communication gap is usually the bigger issue than the late payment itself.

That’s actually why we’ve been building software that automatically notifies owners (with the full context contact attempts, late fee status, tenant response, etc.) once rent stays unpaid past a configurable threshold. It keeps the PM focused on collection while giving the owner real-time visibility without constant manual updates.

Curious what threshold other owners would want as the default.
Hi Paul - For me, the useful trigger is when the owner distribution is being prepared.
I know all rents are due by the 5th, and I normally receive my owner payment between the 7th and 10th. I also know what that payment should be. If the amount is different, I’m looking for an explanation.
An automatic update that explains the discrepancy, who hasn’t paid, what contact has been made, what the tenant said, whether late fees or notices have been issued, and what happens next, does three things for me: it demonstrates my PM has the situation under control, gives me an opportunity to provide input if I want, and mentally prepares me for the escalation process.
That would be more valuable to me than simply getting an alert on day 5 or 7 that rent is late.
0 Reply
Paul Olusola
Technology · Member since 2026 · 83 posts · 27 votes
1mo
Quote from @Alison Robinson:

Quote from @Paul Olusola:

Most PMs I’ve spoken with draw the line around day 5–7 after the grace period once a late fee is assessed and the tenant hasn’t responded to outreach. At that point the owner should know what’s been done and what the next step is, not just that rent is missing.

The communication gap is usually the bigger issue than the late payment itself.

That’s actually why we’ve been building software that automatically notifies owners (with the full context contact attempts, late fee status, tenant response, etc.) once rent stays unpaid past a configurable threshold. It keeps the PM focused on collection while giving the owner real-time visibility without constant manual updates.

Curious what threshold other owners would want as the default.
Hi Paul - For me, the useful trigger is when the owner distribution is being prepared.
I know all rents are due by the 5th, and I normally receive my owner payment between the 7th and 10th. I also know what that payment should be. If the amount is different, I’m looking for an explanation.
An automatic update that explains the discrepancy, who hasn’t paid, what contact has been made, what the tenant said, whether late fees or notices have been issued, and what happens next, does three things for me: it demonstrates my PM has the situation under control, gives me an opportunity to provide input if I want, and mentally prepares me for the escalation process.
That would be more valuable to me than simply getting an alert on day 5 or 7 that rent is late.
That makes a lot of sense. The owner distribution date is probably a much better trigger than simply saying day 5 or day 7.
The key is giving the owner the full picture before they even have to ask what happened.
I like your point that the update should also prepare the owner for what may happen next, rather than just creating another notification.
That’s a much more useful workflow.
1 Reply

Albert Wimile

Member since 2026 · 7 posts · 1 vote

1mo

Owner here. I expect notification when rent is 5 days late. That's the grace period. A simple email: 'Tenant hasn't paid. Late fee applied. We've contacted them and they said X. Will update by Y date.'

I don't need day-by-day updates but I do need to know before it becomes a 30-day problem. One month of missing rent matters.

1 Reply

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