Not paying rent affecting my goals

[Nicole A.]

This is more of a vent than anything.

So the first month with a new tenant has come around and I still have no rent payment. We set it so it was due on the 5th and late by the 10th; The renter wanted to pay rent by either electronic deposit or going to my bank to deposit.

Anyway, it's the 9th and I still have nothing. His phone is conveniently disconnected as well. Failure to Pay Rent papers will be filed tomorrow if I have nothing by 3pm. It's just so frustrating! The renters I found for the upstairs unit have been great so far...sending rent early even! Apparently I didn't do as well with this guy... Maybe I'm speaking too soon, but so far it doesn't feel good.

Between 2 of 4 of my renters being behind on rent, this has really stopped me from seriously looking at purchasing my third rental. Some of my tenants were "grandfathered" in from the previous owner. My cash flow is affected; I can't get another mortgage until I get rid of these bad renters!

[Val Csontos]

The way I prevent/reduce this "game paying" or at least make my time at the courthouse worthwhile is by:

For example, if the rent is $1000 in our unit, than i write the lease for $1200 and the Tenant gets a discount if they pay by 4th of the month. My lease was looked over by a Maryland Judge and he was fine with it. According to local laws, late fees are here in MD about 3-5%. But I do not have late fees, just rent discounts for timely payments!

Each time i "file for failure to pay" rent i just write in $1200 and no late fees. And if the tenant plays with me until eviction this way i get an extra $600.

Good luck on your next one!