The Tenant Who Paid Too Early

The Tenant Who Paid Too Early

Real Estate Coach · Miami, FL · Member since 2024 · 1k+ posts · 484 votes

On September 28, Mr. Henderson paid his October rent. This was three days early and therefore immediately suspicious.

The property manager, who had spent seventeen years pursuing tenants who paid late, had never encountered a tenant who paid early. She consulted the lease.

Rent was due on the first of each month. Nothing was said about paying before that date. She opened an incident report. Mr. Henderson was asked to explain himself. He replied that he had received his salary and thought he might as well pay the rent.

The explanation was recorded but considered inadequate. The accounting department was consulted. Its software had already closed September and was not prepared to recognize October. The payment was consequently classified as an unidentified surplus.

Mr. Henderson was informed that he had a credit balance. He replied that he had paid his rent. The property manager explained that these were two different things.

On October 1, the automated system issued a notice reminding Mr. Henderson that his rent was due. He telephoned the office. The property manager assured him that his money had been received, but the system could not apply it until the surplus had been properly identified.

A committee was formed. The committee established that Mr. Henderson had no outstanding debts, had never missed a payment, and had occupied the apartment for six years without complaint.

These findings were troubling.

One member suggested that early payment might indicate an intention to vacate. Another suspected an attempt to conceal an unauthorized subtenant. A third proposed reviewing his financial circumstances. Mr. Henderson was invited to a meeting. He declined, explaining that he was at work. His refusal was added to the file.

On October 12, the committee concluded that no violation had occurred. However, to prevent future irregularities, Mr. Henderson was instructed to pay his rent on the first of each month, neither earlier nor later. He agreed.

On November 1, his payment arrived at 8:03 a.m. The accounting system had been scheduled to process rent at midnight. Consequently, Mr. Henderson was three minutes late. A late fee was automatically assessed. The property manager was relieved. At last, she knew what to do.

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Member since 2017 · 81 posts · 39 votes
3d

the committee got me. but the real version of this is common, and it's always the software, not the tenant.

somebody gets paid on the 28th and pays early. the system has no October rent posted yet, so it files the money as a credit. then on the 1st the reminder goes out anyway, because it only checks whether a rent bill exists, not what the person actually owes.

two rules end it. money that comes in with nothing owed waits as credit and gets put on the next rent the moment that rent posts, with nobody touching it. and every reminder and late fee looks at the balance after credit, not at the bill.

and no late fee on the morning of the 1st. ours doesn't land until the 4th, so a payment that clears at 8:03 a.m. is just rent.

a six-year tenant who pays early is the one you build the system around, not the one it trips over.

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  • Member since 2017 · 81 posts · 39 votes
    3d

    the committee got me. but the real version of this is common, and it's always the software, not the tenant.

    somebody gets paid on the 28th and pays early. the system has no October rent posted yet, so it files the money as a credit. then on the 1st the reminder goes out anyway, because it only checks whether a rent bill exists, not what the person actually owes.

    two rules end it. money that comes in with nothing owed waits as credit and gets put on the next rent the moment that rent posts, with nobody touching it. and every reminder and late fee looks at the balance after credit, not at the bill.

    and no late fee on the morning of the 1st. ours doesn't land until the 4th, so a payment that clears at 8:03 a.m. is just rent.

    a six-year tenant who pays early is the one you build the system around, not the one it trips over.

  • Member since 2026 · 287 posts · 43 votes
    3d

    Ha, poor Mr. Henderson. Honestly a tenant who pays early for six years is the kind you just say thank you to and leave alone.

    Randy, Bunklow

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3d

    have run into multiple situations over the years at multiple companies similar to this!

    Many people can't think their way through new situations.

    Intelligence is the application of knowledge to new situations.

  • Patrick O'SullivanBusiness Member
    Property Manager · Phoenix, AZ · Member since 2024 · 557 posts · 212 votes
    3d

    Automated notices and late fees will occasionally misfire, and the damage usually comes from how long it takes a person to step in, not the glitch itself. Whoever answers the phone should be able to reverse a bad fee on the spot and send a quick note owning the error, no committee required.

    get MULTIfamily Property Management4.7215 Reviews
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