Rent to tenants with history of late rent payments?

Question

I talked to an applicants current landlord and he said that the tenants are late with rent 50% of months over a 2 year period. However they are honest and always pay eventually including all late fees.

I talked to them and they are willing to set up automatic monthly withdrawals for rent payment so I would put this in the lease.

Would you rent to them or is this still risky? I haven't had any better applicants. Their application looks great except for the late rent payment history.

Bryce Y. · Answer

I would not rent to them. Automatic withdrawals mean nothing if there's no money in the account. Also I would not believe anything the current landlord says about their tenant.

Aly W. · Answer

A chronically late (former) tenant eventually did get to the point where she couldn't come up with the next month's rent. She was able to get emergency assistance, but that took another 3 weeks. When her lease expired, I didn't renew, but told her she would be on a month to month. She promised she wouldn't be late again, and kept that promise for a whole month. Next month - late again, and this time she got a 30 day notice to vacate. She didn't fight it, and left peacefully. "Unforseen expenses" simply means they would rather pay their cell phone or cable bill than you. Cell phone and cable service can be cut off quickly for non-payment, as opposed to evicting for non-payment.

Jon K. · Answer

I would agree with this. Why are they late HALF the time over two years? That's a LOT. Yes, they eventually pay... they don't want to be evicted. Do they get paid the 10th and their rent was due the week before? Clearly they're one paycheck away from not being able to pay at all. Could you up the security deposit? How's their rental reference from the other landlord?

Account Closed · Answer

There are no such thing as a perfect tenant. Joe Gore

Elizabeth Colegrove · Answer

Personally I don't rent to people who are late on their rent. Rent comes first. Unforeseen expenses come out of OTHER accounts. People who paying rent isn't a priority isn't a priority to me to rent. That being said. If they are always a day or 3 late, and ALWAYS pay. They just pay an extra $150 with rent. Well than maybe that's a special case. The issue is if they have no problem paying 1-3 days late, than whats one more day. Till they are 30 days late and now you have to go to the courts. Personally, I take the extra time and *headache* to find the type of houses to buy and renter to install that fit my values. Yes this is a little more work on the front end. During the tenancy, it makes my life MUCH easier. My goal is to have great houses and tenants that don't need attention. Houses that don't break and Tenants that pay their rent on time as direct deposit and don't call unless they need something. Oh by the way, all my tenants are required to do direct deposit.

Brian C. · Answer

They have been up to a few weeks late. It seems like they just have unforseen expenses come up from time to time although it looks like they have plenty of income. I do not need the income for my expenses but I don't want to have to deal with an eviction if they ever just can't pay. The unit is still occupied but I only have a few weeks until it is vacant. Thanks for the advice. Sounds like I should pass on them.

Lynn McGeein · Answer

My experience is tenants who pay rent late usually end up paying even later, then not at all. Maybe take a chance if everything else is good and you do feel it's just a paycheck issue (like change the date to rent due on the 8th or whenever they get paid if they've never been more than 2 weeks late before), but I'd request the maximum deposit allowed by law, not just one month's rent, and move on if they don't have it. The last tenant I renewed even though she was habitually late the year before (but always caught up) left halfway through the next year and didn't pay at all for the last month and a half she was there, and I felt lucky that she just left without further problems, lesson learned. If they don't pay their medical bills or student loans on time but their rent has always been paid on time, I'll consider them. But I now avoid anyone who feels they can pay rent habitually late.

Pat L. · Answer

payment on time = < headaches

Patrick L. · Answer

My experience with tenants that are constantly late is there will eventually be some financial event that put them behind to the point where they will never come back. These people have no financial buffer and if a major expense comes up that they consider more important than their rent or if they have a change in their income either temporary or permanant you will end up having to evict.

Nicole A. · Answer

All the questions already asked and also, if they are late because rent is due on the 1st but they don't get paid until the 10th, perhaps you could just make your lease state that rent is due on the 10th with grace period to the 15th.