How to deal with late payments

[Alex Moazeni]

Hi .

One of my teanent just keeps asking to pay later than the 3rd.

This is her second time she asked for.

Although I have a $50 late fee plus $10 per day, she agreed and paid it all.

Now she is asking for 16th, and I charged her $50+$10 per day, and she accepted.

Should I let it be like this, or do I have to report to her credit?

Thoughts?

[Nathan Gesner]

Quote from @Alex Moazeni:

If you allow her to pay later, do you think she will eventually improve and get on track? The answer is no. If she's struggling to pay rent now, there's a very good chance she will only get worse over time and it will eventually create big problems for you and possibly cost you a month of rent or more. By accepting the late rent, you're training her that your rules are negotiable.

She can't manage her finances. If it were me, I would tell her she needs to figure it out and get on track starting in July or she needs to find a more affordable place to live before she ends up falling behind and being evicted. I would try to reason with her and get her to leave. If she insists on staying, then I would follow your process and not waiver on late fees, 3-day Pay or Quits, Eviction, or whatever your process is.

If you don't have a process, it's time to build one. Mine:

- Rent is due on the first day of the month

 -Late fee is applied on the fifth day of the month, no acceptions. Late fee is 5% of the monthly rent. I don't increase it daily because (a) that causes confusion, and (b) it may not stand up in court, and (c) I move to the next step quickly

- 3-day Pay or Quit served on the tenth day of the month

- After 3-day expires, I file in court for eviction

By having a process and sticking with it, Tenants know I'm serious and they respond accordingly. When you are negotiable, wishy-washy, or uncertain, then Tenants recognize that and they'll figure out how to play you like a cheap fiddle.